On August 12, a bill (SB386) was introduced in Wisconsin requiring full Know Your Customer (KYC) checks for Bitcoin ATM transactions.
Full KYC for Bitcoin ATM Transactions
The SB386 bill requires users to present a government-issued photo ID for every transaction, regardless of amount, and caps transactions at $1,000. Operators are also required to collect additional personal data to enhance oversight.
Impact on Businesses and Users
Bitcoin ATM operators will face increased compliance costs due to the need for identity verification systems, which may adversely affect smaller businesses. Users will experience reduced anonymity and increased transaction hurdles, especially for larger transactions.
Context of Cryptocurrency Regulation in the USA
Wisconsin is not the first state to impose regulations on cryptocurrencies. New York's BitLicense program kicked off a patchwork of cryptocurrency regulations in the U.S., creating challenges for crypto companies operating within the country. If passed, SB386 could set a precedent for future state-level cryptocurrency laws.
The SB386 bill highlights the growing pressure for the regulation of digital assets and the need to strike a balance between innovation and security in the financial landscape.
