- Wisconsin lawmakers have filed two matching bills to increase regulation of crypto kiosks following a sharp rise in fraud.
- The legislation intends to require money transmitter licensing, robust identity checks, fraud warnings, and limits on fees and daily transactions.
- Federal data shows a 99% jump in crypto kiosk fraud complaints in 2024, with losses approaching $247 million.
- There are 582 Bitcoin ATMs in Wisconsin, out of over 31,000 in the U.S., according to Coin ATM Radar.
- If passed, the new rules would include clear fraud alerts at each machine and mandatory victim refund policies.
Wisconsin Democratic lawmakers have introduced two identical bills within two weeks, aiming to tighten rules on crypto kiosks throughout the state. The proposed legislation follows a nationwide surge in fraud linked to these machines, which reportedly cost victims almost $247 million in the past year.
The bills—Senate Bill 386 and Assembly Bill 384—would place new requirements on crypto kiosk operators, such as obtaining a state money transmitter license, enforcing strict identity verification, issuing on-site fraud alerts, and capping fees and daily exchange amounts. Reports from the Treasury Department’s Financial Crimes Enforcement Network indicate a 99% spike in kiosk-related fraud complaints in 2024 and a 31% jump in total reported losses to $247 million.
Senator Kelda Roys and Rep. Ryan Spaude led the efforts, with both bills referred to the Committee on Financial Institutions. Each proposal sets a $1,000 daily transaction limit per customer and restricts operator fees to “$5 or 3 percent of the transaction amount.” Machines must also display fraud warnings such as: “FRAUD ALERT! Criminals seek to defraud virtual currency customers by impersonating loved ones, government officials, law enforcement officers, or charities.”
According to Coin ATM Radar, Wisconsin currently hosts 582 Bitcoin ATMs out of more than 31,000 in operation across the United States. The bills require collecting customer details—name, date of birth, address, phone number, and a government-issued ID—before allowing any initial transaction. “While crypto ATMs were developed as a natural extension of the crypto ecosystem, enabling convenient purchases through physical kiosks, the absence of robust KYC (know-your-customer) protocols has made them vulnerable to money laundering and illicit activities,” said Arjun Vijay, founder of crypto exchange Giottus.
The proposed laws also include refund measures for confirmed victims who alert authorities within 30 days. Dileep Kumar H V, director at Digital South Trust, explained, “While it may limit high-value trades and reduce Anonymity, it builds public trust, paving the way for safer, more credible digital currency adoption in everyday transactions.”
Similar regulation is occurring abroad, with Australia enforcing transaction caps and New Zealand working on kiosk bans. In the U.S., the Spokane City Council in Washington recently voted to remove crypto kiosks after federal fraud investigations.
The Wisconsin proposals await review in their respective committees. If approved, mandatory identification rules would begin 60 days after passage. For more information, the text of Senate Bill 386 is available here, while Assembly Bill 384 can be read here. For nationwide ATM numbers, see Coin ATM Radar.
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