Joins the Fight: New Rules Target and

In a bold move to protect its residents, especially seniors, city leaders have passed a new ordinance regulating . These include popular and crypto kiosks that have been linked to rising scams. The goal? To stop fraud and keep local money safe.

What Are Cryptocurrency Machines?

, often called or crypto kiosks, are like regular ATMs but for digital coins. You can buy Bitcoin or other cryptos using cash. They sit in stores, malls, and gas stations. Sounds easy, right? But scammers love them.

Here’s how they work:

• Insert cash into the machine.
• Scan a wallet QR code.
• Get crypto sent to your wallet.

Fees are high, often 10-20%. And without rules, bad actors set up fake machines or trick users.

The Scam Problem in

Local police are worried. Sterling Heights Police Capt. Colleen Hopper shared shocking stats. In 2025 alone, residents lost $559,400 to scams tied to these machines. Seniors are hit hardest. Why? They trust easy cash-to-crypto swaps but fall for tricks like fake phone support or wallet hacks.

Common scams include:

1. Phony kiosks: Machines that take money but send no crypto.
2. Support fraud: Scammers call pretending to help, stealing wallet info.
3. Overpriced trades: Machines charge hidden fees that drain accounts.

This isn’t just a issue. Cities across the US see the same problems.

Details of the New Ordinance

Passed on Tuesday evening, the ordinance sets strict rules for . Key points:

• Licensing required: Operators must get a city license. Background checks apply.
• Location limits: No machines near senior centers or easy-scam spots.
• Fee caps: Maximum charges to stop gouging.
• ID checks: Users over certain amounts must show ID.
• Reporting rules: Operators report transactions to police.

These steps aim to track machines and spot fraud fast.

Isn’t Alone

joins a growing list of cities fighting back. For example:

• New York City requires licenses and $1,000 daily limits per user.
• Chicago bans machines in high-crime areas.
• Los Angeles demands clear fee signs and video surveillance.

This trend shows local governments stepping up where federal rules lag. Crypto grows fast, but so do risks.

Why Seniors Are at Risk

Seniors love the promise of crypto gains. But many lack tech know-how. Scammers target them with:

• Calls claiming “machine errors” needing wallet access.
• Fake ads promising huge returns.
• Door-to-door pitches for “easy Bitcoin setups.”

The $559,400 loss in 2025 proves the danger. New rules add safety nets like education campaigns and hotlines.

What This Means for Crypto Users

Good news for honest users: Safer machines mean more trust in crypto. But operators face costs. Some kiosks may close if rules are too strict.

For the industry:

• Push for better tech like fraud alerts on screens.
• Partner with cities for compliant setups.
• Educate users on wallet security.

Long-term, this could lead to national standards. Crypto adoption needs trust.

Tips to Stay Safe with

Even with new rules, be smart:

1. Use your own wallet, not theirs.
2. Check fees before inserting cash.
3. Verify the machine QR code.
4. Avoid help from strangers.
5. Start small to test.

Report issues to police right away.

Looking Ahead

‘ ordinance is a win for consumer protection. It balances crypto innovation with safety. As more cities follow, expect tighter rules nationwide. Crypto fans, stay informed and cautious.

What do you think? Will these rules help or hurt crypto growth? Share in comments below.

Stay tuned for more on and scam prevention.