Yes. Owning and trading crypto is legal in Michigan, and the state has no crypto licence: custodial exchanges register as money transmitters with the Department of Insurance and Financial Services (DIFS).

The law is the Money Transmission Services Act, 2006 PA 250. DIFS says every entity providing money transmission services needs a licence, and that holding funds in an e-wallet counts. Neither the act nor the DIFS guidance mentions virtual currency, so licensing an exchange rests on the act’s words “monetary value”, not on a DIFS ruling. In practice all seven US exchanges we track hold a Michigan licence. In 2019 Michigan did add cryptocurrency to its penal code, the one crypto law we found signed since.

Bitcoin ATMs are the gap. The Attorney General says the machines lack oversight and regulation, and five kiosk bills sit in committee. Federal rules from the SEC, CFTC, Treasury and IRS apply as in every state, and offshore exchanges that refuse US users refuse Michigan too. Both are covered in our United States guide.

Which crypto licences does Michigan require?

A money transmitter licence from DIFS. All seven US exchanges we track hold one: Coinbase, Kraken, Gemini, Bitstamp, OKX US, Crypto.com and Gate US.

The licence is general, not crypto-specific. DIFS applications go through NMLS, the surety bond starts at $500,000, net worth must exceed $100,000 and licences expire on 31 December each year. We could not read issue dates: the DIFS licensee locator and NMLS Consumer Access were behind bot checks, so the numbers below come from each exchange’s own licence page, and Bitstamp’s page names Michigan without a number.

Table of seven exchanges that serve US residents, all with a Michigan money transmitter licence. Coinbase: money transmitter licence MT0021833, limited, no prediction markets; Kraken: money transmitter licence MT0022200, limited, same as the rest of the US; Gemini: money transmitter licence MT-0021390, limited, same as the rest of the US; Bitstamp: money transmitter licence (number not shown), limited, same as the rest of the US; OKX US: money transmitter licence MT0022704, limited, same as the rest of the US; Crypto.com: money transmitter licence MT0023617, limited, no prediction markets; Gate US: money transmitter licence MT0026454, limited, same as the rest of the US.

A new law is close but not passed. HB 5544, which would adopt the model Money Transmission Modernization Act, passed the House 97 to 10 on 25 June 2026 and waits in a Senate committee. The session ends on 31 December 2026, so any bill not signed by then dies.

Best crypto platforms for Michigan residents

By our access score inside Michigan, Coinbase (8.5 out of 10), Gemini (8.4) and Kraken (8.3) are the most open exchanges, Kalshi (7.3) the most open prediction market and Uniswap (8.0) the most open DeFi platform.

The score rates how fully a Michigan resident can use each platform, not its fees or safety. It is the US score with Michigan’s own limits applied: access status (4 points), the share of the platform’s products open in the state (3), the licences we hold on file (2) and what our geo-access test saw from a US address (1). Platforms that refuse Michigan residents are not scored. The method is on our methodology page.

Exchanges

  1. Coinbase

    Best for The widest product range in Michigan

    8.5/10
    Access
    3.5/4
    Products
    2/3
    Licences
    2/2
    Our test
    1/1

    Pros

    • Money transmitter licence MT0021833
    • Staking, crypto-backed loans and in-app DEX trading are open here

    Cons

    • Prediction markets closed in Michigan
    • Agreed with the Gaming Board on 7 October 2026 to stop sports contracts
    Read our Coinbase report

  2. Gemini

    Best for Spot trading with a Michigan licence

    8.4/10
    Access
    3.5/4
    Products
    1.9/3
    Licences
    2/2
    Our test
    1/1

    Pros

    • Money transmitter licence MT-0021390
    • Staking is open in Michigan; only New York is barred

    Cons

    • Gemini Derivatives excludes US persons
    • Sued by New York over sports contracts in April 2026
    Read our Gemini report

  3. Kraken

    Best for Regulated futures for US residents

    8.3/10
    Access
    3/4
    Products
    2.3/3
    Licences
    2/2
    Our test
    1/1

    Pros

    • Michigan licence MT0022200, held by Payward Interactive
    • Serves every state except Maine and New York

    Cons

    • Moving to New York or Maine ends access
    • Futures run through a separate registered broker
    Read our Kraken report

  4. Crypto.com

    Best for A crypto app with a Michigan licence

    7.5/10
    Access
    3/4
    Products
    1.5/3
    Licences
    2/2
    Our test
    1/1

    Pros

    • Money transmitter licence MT0023617
    • The App is offered in every state but New York

    Cons

    • No sports event contracts in Michigan, per a company statement in December 2025
    • No derivatives for US residents on the Exchange
    Read our Crypto.com report

  5. Bitstamp

    Best for Plain spot trading

    6.6/10
    Access
    3/4
    Products
    0.6/3
    Licences
    2/2
    Our test
    1/1

    Pros

    • Licensed in 38 states, Michigan among them

    Cons

    • No derivatives, staking or lending in the US
    • Does not serve Hawaii or Nevada
    Read our Bitstamp report

  6. OKX

    Best for Spot and conversions from a global brand

    6.0/10
    Access
    3/4
    Products
    1.5/3
    Licences
    1/2
    Our test
    0.5/1

    Pros

    • Money transmitter licence MT0022704, held by OKX INC.
    • okx.com redirects US visitors to OKX United States

    Cons

    • Spot and OTC conversions only: no derivatives
    • Does not serve New York
    Read our OKX report

  7. Gate

    Best for A wide coin list on a licensed US arm

    5.1/10
    Access
    3/4
    Products
    1.1/3
    Licences
    1/2
    Our test
    0/1

    Pros

    • Money transmitter licence MT0026454
    • Spot, convert and staking

    Cons

    • Not offered in seven jurisdictions, including Texas and Washington
    • The global gate.com refused our US address
    Read our Gate report

Prediction markets

  1. Kalshi

    Best for Financial and other non-sports event contracts

    7.3/10
    Access
    3/4
    Products
    2.3/3
    Licences
    1/2
    Our test
    1/1

    Pros

    • CFTC-designated contract market and clearing house
    • The Michigan injunction covers sports contracts only

    Cons

    • A state court order keeps its sports contracts out of Michigan
    • Lost in the Sixth Circuit to Ohio and Tennessee in September 2026
    Read our Kalshi report

  2. Polymarket

    Best for Polymarket markets on a US-regulated exchange

    6.3/10
    Access
    3/4
    Products
    2.3/3
    Licences
    1/2
    Our test
    0/1

    Pros

    • Polymarket US (QCX LLC) is a CFTC-designated exchange
    • Non-sports markets stay open in Michigan

    Cons

    • Agreed on 28 October 2026 to stop new sports contracts in Michigan
    • Lost its federal bid to stop Michigan enforcing gaming law in June 2026
    • polymarket.com itself blocks US users
    Read our Polymarket report

DeFi

  1. Uniswap

    Best for Swapping tokens from your own wallet

    8.0/10
    Access
    4/4
    Products
    3/3
    Licences
    0/2
    Our test
    1/1

    Pros

    • Terms do not exclude Michigan
    • A New York company whose terms do not bar US users

    Cons

    • Leveraged products for US retail are barred
    Read our Uniswap report

  2. PancakeSwap

    Best for BNB Chain swaps and pools

    6.3/10
    Access
    3.5/4
    Products
    1.8/3
    Licences
    0/2
    Our test
    1/1

    Pros

    • Swaps, pools and staking are not excluded

    Cons

    • PCS Perps bars users in the United States
    • No US licence on file
    Read our PancakeSwap report

Which platforms block or limit Michigan residents?

None refuses Michigan outright. Four cut back prediction markets: Coinbase closed the whole product, Kalshi geofences sports contracts under a court order, Polymarket US is stopping them under an agreement and Crypto.com has no sports contracts here.

Every limit comes from the fight over sports contracts, not from crypto licensing. The Gaming Board’s cease-and-desist letters went to 33 offshore operators in October, none of them a platform we track. Robinhood, which we do not track, also agreed to stop on 9 September.

Platforms that cut back MichiganPick one to see what its own documents say
PlatformStatusWhat Michigan losesWhat the platform or regulator saysDocument
CoinbaseLimitedPrediction marketsAvailable to US residents only, excluding Nevada and Michigan; sports contracts stopped by 10 October 2026Prediction markets help page
KalshiLimitedSports contractsThe order requires Kalshi to maintain geofencing to block Michigan residents, with a $500,000 fine for each day of violationAttorney General release
PolymarketLimitedSports contractsPolymarket US stops offering new sports-related event contracts and closes open positions by 25 November 2026, under a stipulation approved by the federal courtGaming Control Board release
Crypto.comLimitedSports contractsA company spokesperson said it is not live with sports markets in Michigan and other statesCDC Gaming report

Source: platform documents and Michigan releases, read 19 and 20 October 2026 (Polymarket: 29 October 2026). The Crypto.com row rests on a news report: we found no primary document.

Who regulates crypto in Michigan?

DIFS licenses the exchanges, the Attorney General warns consumers and sues over gambling, and the Gaming Control Board polices event contracts. No crypto licence or kiosk law has passed.

Timeline in three lanes. Attorney General, 28 March 2023: Crypto scam warning (With State Police). Attorney General, 8 April 2025: Bitcoin ATM alert (New consumer alert). Attorney General, 17 April 2026: ATM alert reissued (Machines lack oversight). Legislature, 13 February 2025: Bitcoin reserve bill (HB 4087, stalled). Legislature, 22 January 2026: Kiosk bills filed (HB 5469 and 5470). Legislature, 25 June 2026: House passes HB 5544 (Money transmission, 97 to 10). Agencies, 29 April 2025: Gaming Board warns CFTC (Event contracts). Agencies, 8 October 2026: 33 offshore letters (Gaming Board orders).

  • DIFS. It issues the money transmitter licences and has published no guidance on virtual currency. The Money Transmission Services Act has applied since 1 January 2007, and the amended act has been in force since 28 March 2019.
  • Attorney General. Dana Nessel has not sued a crypto exchange or kiosk operator. Her office has issued scam alerts, most recently on 17 April 2026, and has sued over prediction markets (next section).
  • Legislature. HB 4087, a bitcoin reserve bill, was filed on 13 February 2025 and is back in committee. Five kiosk bills are pending: HB 5469 and 5470 protect consumers and put kiosk operators under the money transmission act, HB 5986 and SB 980 would ban kiosks outright, and HB 6222 would set a kiosk regulation act.

Not for sports. A Michigan court bars Kalshi’s sports contracts, and Coinbase, Robinhood and Polymarket US agreed to stop offering them, while four appeals are pending at the Sixth Circuit.

Calendar from December 2025 to October 2026 of prediction-market actions in Michigan. Kalshi: Attorney General lawsuit 5 Mar 2026, court order against a platform 29 Jun 2026, court order against a platform 1 Sep 2026. Coinbase: platform sues Michigan 18 Dec 2025, court denies the platform an injunction 6 Aug 2026, agreement to halt sports contracts 7 Oct 2026. Polymarket US: platform sues Michigan 4 Mar 2026, court denies the platform an injunction 17 Jun 2026, agreement to halt sports contracts 28 Oct 2026. Robinhood: platform sues Michigan 4 Mar 2026, court denies the platform an injunction 17 Jun 2026, agreement to halt sports contracts 9 Sep 2026. Beside it: four platforms are barred from sports contracts in Michigan, Kalshi by a court order and Robinhood, Coinbase and Polymarket US by agreement, and four appeals are open at the Sixth Circuit (Nos. 26-1542, 26-1552, 26-1639 and 26-1693).

Michigan treats sports event contracts as unlicensed betting under its Lawful Sports Betting Act. The Attorney General sued Kalshi in Ingham County on 3 March 2026. Kalshi moved the case to federal court, a judge sent it back on 25 June, and on 29 June the state court issued a temporary order with a fine of $120,000 a day. The preliminary injunction of 1 September raised the fine to $500,000 a day. Kalshi’s non-sports markets stay open.

The platforms went to court first. Coinbase sued on 18 December 2025, and Polymarket US and Robinhood on 4 March 2026. A federal judge denied Polymarket and Robinhood injunctions on 17 June, and Coinbase’s followed in August. Robinhood then agreed on 9 September to stop new sports contracts, and Coinbase agreed on 7 October to stop by 10 October and close open positions. Polymarket US followed on 28 October: under a stipulation approved by the federal court it stopped new sports contracts and closes open positions by 25 November, and the state takes no enforcement action while it complies; its appeal stays pending. The Robinhood and Coinbase agreements hold until the Sixth Circuit appeals end, and Kalshi’s own appeal is No. 26-1639. The Sixth Circuit ruled against Kalshi in the Ohio and Tennessee cases on 25 September, which our United States guide covers.

The federal government has not sued Michigan, unlike ten other states, Utah the latest on 26 October 2026. In July the CFTC stepped in only to order Kalshi to fulfil its open trades after Kalshi tried to close Michigan users’ positions.

How is crypto taxed in Michigan?

The same way as federally: crypto is property, a gain is added to your income and taxed at Michigan’s flat 4.25% rate, plus 1% to 2.4% for residents of Detroit and the other cities that have an income tax.

Bars of the income tax a Michigan resident pays on a crypto gain in 2026: most of Michigan 4.25% (state only); Grand Rapids 5.75% (4.25% state plus 1.5% city); Highland Park 6.25% (plus 2%); Detroit 6.65% (plus 2.4%). Below: Michigan treats crypto as property, the same as the federal rule; the state rate is one flat 4.25%; 24 cities add an income tax; and paying with crypto carries 6% sales tax on its dollar value, while buying crypto does not.

Michigan starts from federal adjusted gross income and says it has no rules or policies on digital currency that differ from the federal ones. The rate is 4.25% for the 2026 tax year, the same as 2025. For sales tax, buying crypto is not taxed, but paying for goods with it is: 6% of the dollar value at the time of sale.

Twenty-four cities add an income tax. Detroit charges residents 2.4% and non-residents 1.2%, Highland Park 2% and 1%, and Grand Rapids 1.5% and 0.75%. We did not check whether each city’s ordinance counts crypto gains. No crypto-specific Michigan tax exists, and no bill proposes one.