Lansing weighs rules for cryptocurrency kiosks after AARP flags scam risks

LANSING, Mich. — Cryptocurrency kiosks can look like ordinary ATMs. People who put cash into them at a scammer’s direction often never get that money back.

Lansing City Council is considering new rules for the machines after AARP Michigan raised concerns about fraud aimed at seniors and other residents, according to WKAR Public Media. First Ward Council Member Ryan Kost said the group approached the council about six months ago, and that the machines are easy to mistake for bank ATMs when they sit side by side.

The proposed ordinance would require businesses that host the kiosks to register them with the city clerk, renew that registration each year, post warnings about fraud and display a 24-hour customer service number, WKAR reported. Operators would also have to give disclosures to customers and face penalties for violations, according to a Citizen Portal summary of the Sept. 28 first reading.

On Sept. 28, council introduced the licensing and consumer-protection chapter, referred it to the Committee on Equity, Diversity and Inclusion, and set a public hearing for Oct. 12, that summary said. WKAR reported that a final vote is scheduled for Oct. 26 and that, if the ordinance passes, it would take effect 14 days later.

Kost told WKAR he does not have a confirmed count of Lansing victims and suspects some cases go unreported. Scammers may pressure people to use the machines to pay fake bills or answer threats, making recovery difficult once the cash is converted to cryptocurrency and sent to a digital wallet, the station said.

Lansing’s approach would regulate the machines rather than outlaw them. Jackson City Council voted unanimously Sept. 22 to ban cryptocurrency kiosks, with the ban set to take effect Oct. 22 and existing machines required to come out within 90 days after that, according to WKAR. Kost said he hopes the state will eventually set broader rules because the problem is not limited to Lansing.

Sources:
WKAR Public Media, Leigh Ann Towne, “Lansing considers new rules for cryptocurrency kiosks after scam concerns,” Oct. 14, 2026, https://www.wkar.org/wkar-news/2026-10-14/lansing-considers-new-rules-for-cryptocurrency-kiosks-after-scam-concerns
Citizen Portal, “Council sets public hearing for Oct. 12 on ordinance to regulate virtual-currency machines,” Sept. 29, 2026, https://citizenportal.ai/articles/10476843/michigan/ingham-county/lansing-city/council-sets-public-hearing-for-oct-12-on-ordinance-to-regulate-virtual-currency-machines
Photo: w_lemay, “Lansing City Hall, Michigan Avenue and Capitol Avenue, Lansing, MI.jpg,” Wikimedia Commons, CC BY-SA 2.0 (https://creativecommons.org/licenses/by-sa/2.0/), cropped and color-adjusted, https://commons.wikimedia.org/wiki/File:Lansing_City_Hall,_Michigan_Avenue_and_Capitol_Avenue,_Lansing,_MI.jpg

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Tags: Lansing · News · City Council