Wisconsin is currently discussing new legislative proposals aimed at protecting citizens from cryptocurrency scams, as incidents of fraud become increasingly common.
Rise in Cryptocurrency Fraud
In recent years, cryptocurrency fraud has significantly increased. According to the FBI, victims lost about $247 million to scams involving crypto ATMs over the past year, and the number of complaints has doubled since 2024. Shortly after, the sheriff's office in Wisconsin discussed instances of fraud related to Bitcoin, where one victim lost as much as $40,000 in a single scam.
Proposed Measures for Resident Protection
To combat cryptocurrency fraud, a bill has been proposed that aims to restrict Bitcoin ATMs. In cases of losses incurred through such machines, cryptocurrency companies would be required to refund victims. Additionally, there will be a requirement to post warnings about fraudulent transactions. Furthermore, a $1,000 limit will be set on daily bitcoin transactions, and fees charged by cryptocurrency firms will be reduced.
Opinions and Support for the Bill
State Representative Ryan Spaude, alongside Senator Kelda Roys, noted that if the proposed measures are implemented, the likelihood of being defrauded via crypto ATMs would significantly decrease. "Cryptocurrency is here and actively being used, and we need to take steps to stop Wisconsinites from getting screwed," Roys said. However, the bill may face challenges as Republicans control the legislature and may not support it. The primary sponsors hope to garner bipartisan support.
Wisconsin is developing important legislative measures to protect residents from the growing number of cryptocurrency fraud cases. These steps may help reduce financial losses among the population.
