Michigan Town Takes Preemptive Strike Against Crypto ATM Scammers 🕵️‍♀️💰

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So, there’s this town in Michigan, Grosse Pointe Farms, that doesn’t even have a single crypto ATM, and they’ve gone and passed an ordinance to regulate them. Because, you know, why wait for a problem to arise when you can just preemptively over-regulate? 🤷‍♀️

The city council had a little chat about this after hearing about a local resident getting scammed at a crypto ATM in the neighboring town of St. Clair Shores. Like, if you can’t trust a crypto ATM, who can you trust? 🤔

In April, Michigan’s Attorney General, Dana Nessel, issued statewide warnings about these scams, and the Detroit Free Press was all over it. Because nothing says “news” like a good old crypto scam story. 📰

Rules to Save the Day (Or at Least Try)

“The bad guys tell people to put money into these machines, and it’s a very untransparent situation,” Councilmember Lev Wood said. “What we want to do with our ordinance tonight is to enhance transparency and provide a little bit of help to our residents.” Because, you know, transparency is the new black. 🌈

The ordinance was passed unanimously, making Grosse Pointe Farms the first municipality in Michigan to regulate crypto ATMs. Because, why not be the first to regulate something that doesn’t even exist in your town? 🏆

Limiting the Fun (and the Scams)

City attorney Bill Burgess laid out four main rules for any future crypto ATMs in the town:

  • Crypto kiosks must register with the Department of Public Safety.
  • Operators must get a business license.
  • Mandatory warnings and written consumer protection notices about fraud risks and irreversible transactions.
  • Transaction limits for new users: $1,000 daily cap and $5,000 aggregate limit for the first two weeks. Because, you know, baby steps. 🚶‍♂️

“The idea is that someone at that point would become more familiar with the utilization of the machine,” Burgess explained. Because, you know, practice makes perfect. 🎓

Coinflip Rep Saves the Day (Again)

Carson Gat, a rep from Coinflip, a Chicago-based digital currency firm and ATM operator, shared a story about preventing an elderly woman from being scammed. Because, you know, heroes come in all forms. 🦸‍♂️

He mentioned that Coinflip has looked into limits and holding periods for first-time users, “because that’s where you see the majority of these instances taking place.” Because, you know, first impressions are everything. 🌟

Coinflip has been operating in Michigan since 2019 and got its money transmitter license in April. Because, you know, when you’re good, you’re good. 🏆

And just in case you were wondering, Arizona, Nebraska, California, and Washington states have all been cracking down on crypto ATMs this year. Because, you know, it’s a trend. 🌱

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2025-07-16 09:03