Wisconsin lawmakers are advancing legislation to tighten oversight of crypto ATMs, aiming to curb fraud and protect consumers from scams.
On Monday, Senator Kelda Roys and six other Democrats introduced Senate Bill 386, a companion bill to Assembly Bill 384, filed in the state’s lower house on July 31 by Representative Ryan Spaude. The identical bills allow both chambers to review the measure simultaneously, increasing the likelihood of swift passage.
Key Provisions of the Bill
Under the proposed law, crypto ATM operators in Wisconsin would be required to:
- Obtain a money transmitting license.
- Collect detailed user information, including name, date of birth, address, email, and a government-issued ID.
- Verify customer identity for every transaction.
- Cap transactions at $1,000 per day per user.
- Display fraud warnings prominently on the front of each ATM.
- Limit fees to $5 or 3% of the transaction, whichever is higher.
- Fully reimburse customers for confirmed fraudulent transactions if reported by law enforcement within 30 days.
Federal and Global Crackdown
The move follows an Aug. 4 advisory from the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), which urged financial institutions to report suspicious crypto ATM transactions. FinCEN identified fraud, cybercrime, and drug trafficking as major illicit uses of the machines, warning that elderly individuals are particularly vulnerable to scams.
Globally, regulators have tightened rules on crypto ATMs. New Zealand recently banned them outright, citing money laundering concerns, while the UK seized several unlicensed machines in July. Even small towns like Grosse Pointe Farms, Michigan, have preemptively regulated crypto ATMs before they are installed.
If passed, Wisconsin’s bills could set a state-level precedent for stricter operational controls on crypto ATMs, balancing innovation with stronger consumer safeguards.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.