Grosse Pointe Farms Passes Ordinance Despite Having No Crypto ATMs
In a proactive move to protect residents from fraud, the city council of Grosse Pointe Farms, Michigan, has passed a new ordinance regulating cryptocurrency ATMs — even though the town currently has none in operation.
Prompted by a local scam incident in nearby St. Clair Shores and broader warnings issued by Michigan Attorney General Dana Nessel, the council unanimously approved the measure on Tuesday. Officials say it aims to increase transparency and safeguard consumers before kiosks ever arrive.
“The crooks tell people to go and put money into these machines, and it’s a very untransparent situation,” said Councilmember Lev Wood. “What we want to do with our ordinance tonight is to provide a little bit of help to our residents.”
Grosse Pointe Farms Becomes First in Michigan to Regulate Crypto ATMs
The ordinance, believed to be the first of its kind in Michigan, mandates several requirements for any future crypto ATM installations:
- Mandatory registration with the town’s Department of Public Safety
- Business licensing required for operators
- Clear fraud warnings and written disclosures on all machines
- Transaction limits for new users during the first 14 days
New users will face a daily transaction cap of $1,000 and a total cap of $5,000 for their first two weeks. These limits are designed to help first-time users understand the technology and minimize scam risk.
Industry Feedback and Broader Trends
Coinflip, a Chicago-based crypto ATM operator licensed in Michigan since April, supported the safety-focused approach. Company representative Carson Gat shared a real-life account of helping an elderly woman avoid a scam, reinforcing the need for holding periods and usage caps.
“The majority of scam incidents occur during a customer’s first use of a crypto ATM,” Gat told the council.
Crypto ATM Oversight Expands Across the U.S.
Grosse Pointe Farms joins a growing list of jurisdictions taking action on crypto kiosks. In 2025 alone, Arizona, Nebraska, California, and Washington have each imposed new rules to combat fraud and improve compliance.
Outlook
With fraud on the rise, cities like Grosse Pointe Farms are taking preemptive steps to regulate crypto ATMs before problems arise. By establishing transparency and setting limits upfront, the town hopes to protect residents from common crypto scams and create a safer environment for future digital finance adoption.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.