Wisconsin Lawmakers Introduce Bills to Crack Down on Crypto Kiosks
Wisconsin lawmakers have filed their second legislative attempt in two weeks to crack down on crypto kiosks, in response to a nationwide surge in fraud that they say cost victims nearly $247 million last year.
Senate Bill 386, filed Monday by Senator Kelda Roys alongside six colleagues, echoes Assembly Bill 384, introduced last month by Rep. Ryan Spaude (D-Wis.) and ten co-sponsors.
The moves hint at urgency from Democrats to control digital currency terminals scattered across gas stations and grocery stores statewide.
Treasury Department Issues Urgent Alert
Both bills arrive as the Treasury Department’s Financial Crimes Enforcement Network has issued an urgent alert documenting a 99% spike in crypto kiosk fraud complaints throughout 2024, with reported victim losses jumping 31% to nearly $247 million.
Regulatory Framework and Requirements
The measures would force terminal operators into Wisconsin’s money transmitter licensing system while establishing consumer protections, including mandatory fraud alerts, identity verification protocols, and spending restrictions.
Wisconsin hosts 582 Bitcoin ATMs among 31,439 operating nationwide, according to Coin ATM Radar.
The identical bills share the same regulatory framework and requirements, with both referred to the Committee on Financial Institutions.
Customer Protection Measures
Daily exchange limits are capped at $1,000 per customer while also curbing operator fees at “$5 or 3 percent of the transaction amount.”
Each machine must also prominently display warnings about potential fraud attempts targeting virtual currency customers.
Enhanced Identity Verification
The bills mandate comprehensive identity collection, including names, birthdates, addresses, phone numbers, and government-issued photo identification before any initial transaction.
The proposals also include mandatory refund policies for fraud victims who alert authorities within 30 days, addressing concerns over crypto losses among elderly targets.
International Crackdowns
Wisconsin’s action follows similar crackdowns internationally, with Australia implementing transaction limits and New Zealand preparing complete prohibitions.
In the U.S., Washington’s Spokane city council voted to completely eliminate crypto kiosks following federal investigations into billions in fraud-related losses.
Next Steps
Both Wisconsin bills now await committee review in their respective chambers, with customer identification requirements taking effect 60 days after passage if approved.