The city of Grosse Pointe Farms in Michigan has passed a new ordinance imposing restrictions on crypto ATMs to protect local residents from scams.
Reasons for Regulation
The Grosse Pointe Farms City Council unanimously approved a new law in response to reports of scams associated with crypto ATMs. The discussion was prompted by incidents reported in the nearby town of St. Clair Shores, where a local resident fell victim to fraud.
Main Rules for Crypto ATMs
City attorney Bill Burgess outlined four key regulations concerning future crypto ATMs. All kiosks must be registered with the Department of Public Safety, and operators must obtain a business license. Additionally, required warnings and consumer protection notifications about fraud risks and irreversible transactions must be displayed.
Operator's Experience
Carson Gat, a representative from the digital currency firm Coinflip, shared a personal experience of preventing fraud involving an elderly woman. He noted that their company is considering implementing limits and holding periods on first transactions for new customers, as these instances often occur during initial usage.
Thus, the new measures adopted in Grosse Pointe Farms aim to control the use of crypto ATMs and protect residents from fraud, potentially setting an example for other municipalities in Michigan.
