{"id":37400,"date":"2025-07-17T08:31:34","date_gmt":"2025-07-17T08:31:34","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=37400"},"modified":"2025-07-17T08:31:34","modified_gmt":"2025-07-17T08:31:34","slug":"crypto-crackdown-michigan-town-sets-early-limits-on-bitcoin-atms","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=37400","title":{"rendered":"Crypto Crackdown: Michigan Town Sets Early Limits On Bitcoin ATMs"},"content":{"rendered":"
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Grosse Pointe Farms, a small town just outside Detroit, has passed a local ordinance aimed at controlling crypto ATM use<\/a>\u2014even though the town doesn\u2019t have any yet. The city council voted unanimously on the new rules after hearing about a scam that targeted a resident in nearby St. Clair Shores.<\/p>\n

The incident involved a crypto ATM, which scammers instructed a local to use for sending money. That case helped push council members to act early, hoping to protect their residents from similar schemes.<\/p>\n

New Rules Target Scam Risks<\/h2>\n

During Tuesday\u2019s city council meeting<\/a>, concerns were raised about how easily scammers convince people\u2014especially the elderly\u2014to use crypto ATMs to send money. Council member Lev Wood said the machines create a situation that lacks transparency, making people easy targets.<\/p>\n

The new rules require any crypto kiosk in town to be registered with the Department of Public Safety. Operators must also apply for a business license and provide written warnings on the machines about the risks of fraud and irreversible transactions.<\/p>\n

One of the biggest parts of the ordinance<\/a> is a spending cap for new users. The law sets a $1,000 daily limit and a $5,000 cap over the first 14 days of use. After that period, those restrictions are lifted. The idea, according to city attorney Bill Burgess, is to give new users time to understand how the machines work before making larger transactions.<\/p>\n

Several other states are also taking action. Arizona, Nebraska, California, and Washington have all stepped in this year to add restrictions or outright bans on certain types of crypto ATM operations.<\/p>\n

<\/p>\n

Coinflip Shares Firsthand Scam Story<\/h2>\n

Carson Gat, a representative from Coinflip\u2014a Chicago-based digital currency ATM operator\u2014attended the meeting to give his perspective. He told the council about a time he personally helped stop an elderly woman from getting scammed at one of their machines.<\/p>\n

Gat said Coinflip has explored similar limits on new users to reduce fraud, since most scams happen during a customer\u2019s first visit. Coinflip has been operating in Michigan since 2019 and was granted a money transmitter license in April.<\/p>\n

While the company didn\u2019t oppose the town\u2019s new rules, it did highlight the importance of finding a balance between access and safety. Gat\u2019s appearance also added weight to the council\u2019s concern that this type of scam isn\u2019t just theory\u2014it\u2019s happening.<\/p>\n

State And National Action Picking Up<\/p>\n

This move by Grosse Pointe Farms comes after Michigan Attorney General Dana Nessel issued a statewide alert about crypto ATM scams back in April. Nessel\u2019s office has warned residents to stay away from machines when someone instructs them to deposit money under pressure.<\/p>\n

Featured image from Unsplash, chart from TradingView<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Grosse Pointe Farms, a small town just outside Detroit, has passed a local ordinance aimed at controlling crypto ATM use\u2014even though the town doesn\u2019t have any yet. The city council voted unanimously on the new rules after hearing about a scam that targeted a resident in nearby St. Clair Shores. The incident involved a crypto […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-37400","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/37400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=37400"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/37400\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=37400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=37400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=37400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}