Sterling Heights will vote on January 6, 2026, on a proposed ordinance that would establish a two-tier licensing framework and operational rules for virtual currency machines. The ordinance would require new installs to obtain a host endorsement tied to the physical business location and a separate operator license issued by the City Clerk, with annual renewals and fees set through the city's appropriations process. Existing machines and operators would have to comply by March 31, 2026. Required operational standards would mandate photo ID checks at machines, prominent fraud warnings and consumer disclosures displayed on or near kiosks, printed receipts for every transaction containing date, amount, and a machine identifier, and a live customer service phone line maintained by operators. The proposal would introduce transaction controls including lower initial limits for first-time users, with local reporting citing an example cap near $1,000 per 24 hours for new users and final numeric caps to be set in the ordinance and administrative rules. Enforcement and oversight would be shared between the City Clerk and the Police Department, and violations could lead to suspension or revocation of host endorsements and operator licenses, with inspections, documentation checks, and requirements to produce records tying transactions to receipts and customer service interactions. The policy response follows 23 local cases this year linked to cryptocurrency machines with reported losses exceeding $500,000 and seniors disproportionately affected. Host businesses would have to hold an active city business license and obtain a machine-specific endorsement, and operators would have to implement or update KYC workflows to support photo ID checks, install signage and receipt mechanisms, staff or contract a live customer support line, and budget for application and renewal fees. The City Council could amend fee levels, first-time limits, and enforcement triggers during the council process, and other Michigan municipalities may consider adopting similar frameworks in 2026.
Source: https://web3businessnews.com/policy/sterling-heights-crypto-atm-rules/