Wisconsin is witnessing a rise in crypto ATM fraud, prompting lawmakers to take action to protect residents. A new bill proposed by a group of senators seeks to stop these schemes.
What the Bill Proposes
Senator Kelda Roys and six other Democrats introduced Senate Bill 386 aimed at tackling crypto ATM fraud. The bill requires anyone operating a crypto ATM or kiosk in Wisconsin to obtain a money-transmitting license. Operators must collect key details from customers, including their name, date of birth, phone number, address, and email. A government-issued ID, such as a passport or driver’s license, is also required.
Fraud Warnings
The bill requires machines to display clear warnings about potential scams. Operators can charge a maximum of 3% or $5 of the transaction, whichever is greater. These changes aim to reduce the high fees often charged today. If law enforcement confirms a reported scam within 30 days, the operator must reimburse the customer.
Other States' Measures Against Fraud
Wisconsin is not the only state taking measures against crypto ATM fraud. Recently, New Zealand has prohibited crypto ATMs entirely due to the threat of money laundering. The UK has seized machines and made arrests for illegal operations. Even small U.S. towns like Grosse Pointe Farms, Michigan, are passing local regulations before a single ATM arrives.
If passed, Wisconsin's new rules could make crypto ATM scams much more complicated to execute. It will help protect residents' funds and limit criminals' operations. Although the rule will require operators to comply with additional regulations, it will enhance transaction safety.
