Michigan Town Sets Crypto ATM Rules to Combat Scams

* Grosse Pointe Farms becomes the first Michigan city to regulate cryptocurrency ATMs. * New ordinance mandates fraud warnings, transaction caps, and machine registration. Grosse Pointe Farms, Michigan, has enacted the state’s first ordinance to regulate cryptocurrency ATMs, a proactive move by the city council to safeguard residents from potential scams. The council unanimously passed the legislation on July 16, 2025, which requires comprehensive registration protocols, fraud disclosures, and transaction restrictions to protect users. The new rules respond to a rise in scam incidents, including a recent case targeting a St. Clair Shores resident and a broader alert that Michigan’s Attorney General issued in April. Although Grosse Pointe Farms currently has no crypto ATMs, city officials prioritized the ordinance to preemptively shield their community from such risks. Under the ordinance, ATM operators must register their machines with the city’s Department of Public Safety and secure a valid business license before installation. The machines must also prominently display fraud warnings about the irreversible nature of crypto transactions and potential scam tactics. In addition, the law imposes transaction limits: users face a $1,000 daily cap and a $5,000 total limit for the first 14 days. These limits are lifted after the two-week period, offering a longer adjustment phase for novice users. On July 16, Councilmember Lev Wood said in a statement, “This move is about protecting our residents while fostering transparency. Many people are still unfamiliar with cryptocurrency, and this ordinance ensures safeguards are in place to reduce their exposure to fraud.” The regulation has also earned industry approval from prominent cryptocurrency ATM provider Coinflip, which is backing the initiative. Coinflip highlighted that new users are highly vulnerable to scams and emphasized that education and precautionary measures are critical steps to create a safer crypto landscape. Local leaders and industry observers noted the ordinance’s potential as a blueprint that could pave the way for similar consumer-protection frameworks across Michigan and the U.S., believing it can balance innovation with security in the rapidly evolving cryptocurrency space. According to CoinMarketCap on July 16, Bitcoin (BTC) was trading at $31,487 as of 12:00 UTC, a price reflecting a 1.8% increase in daily trading volume.