Lansing considers new rules for cryptocurrency kiosks after scam concerns

Cryptocurrency kiosks can look like ordinary ATMs, but people who deposit cash into them at the direction of a scammer may never get their money back.

Lansing city officials are considering new regulations for the machines after AARP Michigan raised concerns about scams targeting seniors and other residents.

The proposed ordinance would require businesses hosting cryptocurrency kiosks to register the machines, display warnings about potential fraud and provide a 24-hour customer service number.

Ryan Kost, Lansing City Council’s first ward representative, said AARP Michigan approached the council about the issue about six months ago, prompting officials to consider local regulations.

The machines can be confusing for people unfamiliar with cryptocurrency, Kost said, particularly when they are placed next to traditional ATMs.

“When they're sitting next to the ATM, it certainly looks like it's, you know, just another ATM,” Kost said.

Scams can be difficult to trace

Cryptocurrency kiosks allow customers to deposit cash and convert it into cryptocurrency, which can then be transferred to a digital wallet. Scammers may pressure victims to use the machines to pay bogus bills or address threats, making it difficult for victims to recover their money.