Wisconsin Democrats Want to “Tighten Up” on Cryptocurrency ATMs

Wisconsin tightens regulation of cryptocurrency ATMs to combat fraud

Fraud outbreak and emergency response
In just two weeks, Wisconsin lawmakers have introduced two bills aimed at regulating cryptocurrency ATMs, after the US Treasury Department reported that fraud through these kiosks will increase by 99% in 2024 , with losses of nearly $247 million .

The state currently has 582 Bitcoin ATMs out of more than 31,000 nationwide.

Senator Kelda Roys said the bill would bring operators into the money transfer service licensing system and add a range of consumer protections.

Main content of the bill

The new proposals require identity verification before the first transaction, including full name, date of birth, address, phone number and photo identification.

Transaction limit is set at $1,000/day and fee cap is “$5 or 3% of transaction value”.

Each machine must display a clear warning: “SCAM WARNING! Criminals impersonating relatives, officials, police or charities to defraud customers of cryptocurrency.”

Additionally, victims who report within 30 days will receive a mandatory refund from the operator.

Global tightening trend
Wisconsin is not alone. New Zealand is preparing to ban cryptocurrency ATMs entirely and limit international transfers to $5,000; Australia has imposed a $5,000 transaction cap and requires increased customer due diligence; and several US cities, such as Spokane, Washington, have removed all cryptocurrency ATMs .

As Mr. Dileep Kumar HV, Director of Digital South Trust, commented:

“While reducing high-value transactions and anonymity, this measure builds public trust, paving the way for safer adoption of cryptocurrencies.”