Grosse Pointe Farms has introduced new regulations for cryptocurrency Automated Teller Machines (ATMs) operating within the city, aiming to combat fraudulent activities.
The key provisions include a strict $1,000 limit on daily transaction amounts per person and a $5,000 aggregate cap applicable during the initial 14-day period following registration of a device with the city.
These measures specifically target reducing fraud risks, particularly those impacting vulnerable groups like elderly citizens, through enhanced oversight. City officials confirmed collaboration with established industry firms to implement these changes effectively.
Operators must now register each crypto ATM kiosk with the city’s Department of Public Safety and obtain a business license.
Grosse Pointe Farms joins a growing list of jurisdictions enacting similar crypto ATM rules. Regulatory actions or proposals have been seen in Arizona, Nebraska, California, and Washington state.
The need for robust regulations is underscored by recent enforcement incidents, such as Coinme agreeing to pay a $300,000 fine for violating California’s digital financial asset transaction regulations.