Harper Woods introduces ordinance to regulate virtual-currency ATMs; modeled on Grosse Pointe Farms

Harper Woods — The City Council introduced an ordinance for a first reading that would regulate virtual-currency automated teller machines (ATMs) within city limits, citing rising scams and fraud affecting residents.

Staff said the draft ordinance would require mandatory registration of virtual-currency ATMs with the police department, impose transaction limits (a $1,000 transaction limit referenced for the first 24 hours related to new users, and a live phone or video call requirement for transactions over $500 in the draft) and require businesses operating the machines to hold a local business license. The ordinance is modeled on language used by Grosse Pointe Farms, which staff identified as the first Michigan municipality to adopt such measures.

Council members discussed whether the $1,000 limit should apply to all users rather than only to new users and whether a 24-hour aggregate withdrawal cap would be appropriate. One member clarified that a dollar limit in 24 hours is comparable to bank daily withdrawal limits and would prevent repeated small transactions from evading limits. Staff said the city had not experienced a local incident but proposed the ordinance as a preventive measure after learning of elder residents being targeted in other jurisdictions.

By roll call the council voted to introduce and set the ordinance for first reading and directed the clerk to publish the required notice.