Grosse Pointe Farms is the first Michigan town to pass a law regulating crypto ATMs

Grosse Pointe Farms, a small town near Detroit, has become the first in Michigan to pass a local law regulating cryptocurrency ATMs to shield residents from rising scam activity.

The city council unanimously approved the ordinance on Tuesday, following a case where a resident was scammed at a crypto ATM in neighboring St. Clair Shores.

Officials say fraudsters instructed the victim to withdraw cash and deposit it into a crypto kiosk under false pretenses.

This incident mirrors a growing trend across Michigan. In April, the state attorney general issued a warning about increasing crypto ATM-related scams, urging the public to stay cautious.

Around the same time, the Detroit Free Press reported that several victims had lost thousands of dollars in irreversible cryptocurrency transactions.

will also require that any crypto ATM placed there be registered with the Department of Public Safety. Operators are supposed to acquire a bona fide business license before placing their machines.

Crypto kiosks are commonly located in gas stations, convenience stores, and shopping malls. Operators often leave these spots, making them easy targets for scams. Experts say that victims may feel isolated, unsure how to seek help, or unable to involve a friend or family member.