Wisconsin lawmakers have introduced new bills aimed at increasing the regulation of crypto kiosks and ATMs in response to the rise in scam-related incidents involving cryptocurrencies.
New Bills for Crypto Kiosk Regulation
Democratic lawmakers in Wisconsin proposed bills requiring money transmission licenses for crypto kiosks and ATMs. The bills also call for strict KYC verifications and a daily transaction limit of $1,000 per customer.
Fraud Warnings
Senator Roys cautioned that while emerging tech can be 'exciting,' it also attracts scams. According to an investigator from the Wood County Sheriff's Department, victims are losing between $2,000 and $60,000 at a time due to scams. The investigator noted that despite the increasing number of complaints, the significant dollar losses express the major concern.
> "That’s the real concern. In Wood County, we’re probably an average-sized county in the state population-wise, so I can’t imagine what it is like down in Dane County or Milwaukee County, where the mass populations are, or in the Fox Valley, where there's just a lot more people."
– CITE_W_A.
Goals and Features of the Proposed Bills
Dileep Kumar, Director at Digital South Trust, stated that the bills aim to build public trust, though they limit high-value trades. Lawmakers emphasized that the proposals are focused on protecting consumers from fraud rather than being against crypto itself.
Wisconsin lawmakers are taking steps to enhance consumer protection in the cryptocurrency space, emphasizing the need for strict oversight of crypto kiosks and ATMs to prevent financial losses from scams.
