Lansing City Council considering cryptocurrency kiosk regulations

LANSING, Mich. (News 10) — Lansing City Council could decide Monday night whether to implement regulations for cryptocurrency kiosks.

The move comes as the Michigan chapter of AARP has warned that the kiosks have been used by scammers to trick people into buying or sending cryptocurrency.

If the regulations are approved, operators of the kiosks would be required to post disclosures and warnings to customers. Operators who do not comply could face penalties.

Jackson has already banned kiosks

In mid-Michigan, the city of Jackson has banned these types of kiosks from operating.

Jackson’s ordinance, which passed with a unanimous council vote, bans anyone from installing, operating or hosting a virtual currency kiosk in the city. It also bans “cashier-facilitated” crypto transactions, in which a store employee manually processes a cryptocurrency exchange for a customer without a physical kiosk.

Under Jackson’s ordinance, property owners, landlords and business operators who knowingly allow a kiosk to operate on property they own or control can face enforcement action. Violators face a $500 fine, with each day a kiosk remains operating illegally counted as a separate violation. The city can also seek removal of the machine and forfeiture of money collected through it during the violation period.