{"id":14978,"date":"2025-08-13T09:15:38","date_gmt":"2025-08-13T07:15:38","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=14978"},"modified":"2025-08-13T09:15:38","modified_gmt":"2025-08-13T07:15:38","slug":"wisconsin-senate-introduces-legislation-to-combat-crypto-atm-fraud","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/08\/13\/wisconsin-senate-introduces-legislation-to-combat-crypto-atm-fraud\/","title":{"rendered":"Wisconsin Senate Introduces Legislation to Combat Crypto ATM Fraud"},"content":{"rendered":"

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Legislators in the US state of Wisconsin have unveiled a proposal in the state\u2019s Senate to complement a prior measure introduced in the lower chamber aimed at preventing fraud linked to crypto ATMs.<\/p>\n

Senator Kelda Roys, along with six other Democrats, unveiled<\/a> Senate Bill 386 on Monday as supplementary legislation to Assembly Bill 384, which Democratic Representative Ryan Spaude unveiled<\/a> on July 31.<\/p>\n

According to the corresponding proposed bills, crypto ATM or kiosk operators must obtain a money transmitting license to operate in the state and are required to gather details about their users, including name, birthdate, number, address, and email.<\/p>\n

Submitting matching bills in both chambers is a strategy to enhance the chances of a bill becoming law and expedites the legislative procedure as both houses can deliberate it at the same time.<\/p>\n

An excerpt of Senate Bill 386 unveiled on Monday. Source: <\/em>Wisconsin Legislature<\/em><\/a><\/figcaption><\/figure>\n

Wisconsin aims to alert crypto ATM users<\/h2>\n

As per the bills, crypto ATM operators will be obligated to acquire a government-issued identification from their clients, such as a passport or driver\u2019s license, and will be required to capture a photo of the customer.<\/p>\n

Operators must authenticate their customers\u2019 identities for each transaction, limiting users to $1,000 in transactions per day.<\/p>\n

The bills stipulate that warnings about the potential for fraud must be displayed \u201cwithin the customer\u2019s line of sight\u201d on the front of the machine.<\/p>\n

The warning text proposed under the bill, which would be exhibited on crypto ATMs if approved. Source: <\/em>Wisconsin Legislature<\/em><\/a><\/figcaption><\/figure>\n

Crypto ATMs generally impose much steeper fees compared to online crypto exchanges, and the bills recommend capping the fees that operators may charge customers to either a flat $5 fee or 3% of the transaction amount, whichever is greater.<\/p>\n

Operators are also required to fully reimburse customers if an ATM is utilized to execute a fraudulent transaction, such as to a scammer, or if the operator is notified by law enforcement confirming that the transaction was fraudulent within 30 days.<\/p>\n

FinCEN issues warning on crypto ATM frauds<\/h2>\n

On Aug. 4, the US Treasury\u2019s Financial Crimes Enforcement Network (FinCEN) released<\/a> a notice to financial institutions urging them to report dubious transactions carried out via crypto ATMs.<\/p>\n

\u201cCriminals are unyielding in their attempts to rob victims, and they have learned to exploit pioneering technologies like CVC [convertible virtual currency] kiosks,\u201d FinCEN Director Andrea Gacki stated.<\/p>\n

FinCEN reported that it identified fraud, cybercrime, and drug trafficking as the three primary illegal activities conducted through crypto ATMs.<\/p>\n

Related: <\/strong><\/em>Tasmanian police find top 15 crypto ATM users are scam victims<\/strong><\/em><\/a>\u00a0<\/strong><\/em><\/p>\n

The agency has further confirmed that senior citizens are particularly susceptible to scams where malicious actors masquerade as bank employees, tech support specialists, or customer service representatives.<\/p>\n

Global crackdown on crypto ATMs<\/h2>\n

Crypto ATMs have come under scrutiny from regulators worldwide due to concerns regarding their association with criminal activities.<\/p>\n

On July 17, New Zealand outlawed crypto ATMs across the nation<\/a>, citing their involvement in money laundering and criminal financing.<\/p>\n

The UK has also intensified its regulatory actions on crypto ATMs, seizing seven crypto<\/a> ATMs and arresting two individuals in southwest London in July on suspicions of money laundering and illegally operating a crypto exchange.<\/p>\n

Grosse Pointe Farms, a small town just outside of Detroit, Michigan, has proactively passed a regulation on crypto ATMs<\/a> even though the town does not currently have one.<\/p>\n

Magazine: <\/strong><\/em>Philippines blocks major crypto exchanges, Coinbase scammer\u2019s stash: Asia Express<\/strong><\/em><\/a><\/p>\n