A machine in a supermarket exchanging bitcoins for crowns. Source: nataliyapylayeva - stock.adobe.com

Key Takeaways:

Grosse Pointe Farms passed an ordinance regulating crypto ATMs despite having none, aiming to prevent scams after a nearby incident.
The rules mandate kiosk registration, business licensing, fraud warnings, and transaction limits for new users.
The move aligns with broader efforts in several U.S. states to increase oversight of crypto ATMs amid rising fraud concerns.

Grosse Pointe Farms, a suburb near Detroit, has passed an ordinance to regulate cryptocurrency ATMs despite not having any currently in operation.

Prompted by a nearby scam and statewide fraud warnings from Michigan’s Attorney General, the city council unanimously approved the measure to enhance transparency and protect residents from fraud.

Grosse Pointe Farms becomes first Michigan community to regulate crypto ATMs https://t.co/8zj67UZh1r
— Detroit Free Press (@freep) July 15, 2025

Under the new rules, any crypto ATM must be registered with the Department of Public Safety, display fraud warnings, and be operated by a licensed business.

The ordinance also imposes strict transaction limits for new users: a $1,000 daily cap and a $5,000 total limit within the first 14 days, which are lifted after two weeks.

City attorney Bill Burgess said the goal is to give users time to understand how the machines work before making large transactions.

During the meeting, a Coinflip representative supported the idea, noting that fraud often occurs during a user’s first transaction.

Coinflip, licensed in Michigan since April, is exploring similar safeguards.

Grosse Pointe Farms joins a growing list of U.S. jurisdictions – including Arizona, California, and Washington – that are proactively regulating crypto ATMs to combat rising scam activity.