Wisconsin senators have filed a companion bill, Senate Bill 386, mirroring Assembly Bill 384, aimed at closer regulation of crypto ATMs to curb scams and frauds associated with these machines.
The key provisions and intentions of this legislation include:
-
Requiring crypto ATM operators to obtain a money transmission license and comply with strict Know-Your-Customer (KYC) regulations. Users must provide full legal name, date of birth, telephone number, residence address, email, and present a government-issued ID (like a passport or driver's license) along with a photo taken at the ATM.
-
Imposing a daily transaction cap of $1,000 per customer.
-
Capping transaction fees at either 3% or $5, whichever is higher.
-
Mandating that crypto ATMs display clear “Fraud Alert” warnings to warn users about scams, including those impersonating loved ones, charities, or government representatives.
-
Requiring ATM operators to reimburse victims for confirmed scam losses reported within 30 days.
-
Enhancing law enforcement’s ability to track illicit transactions akin to traditional banking.
These measures respond to a surge in crypto ATM scams, with losses estimated around $247 million nationwide in 2024. Wisconsin alone has about 582 Bitcoin ATMs, many lacking adequate regulation and transparency.
Senator Kelda Roys and other Democratic lawmakers stress that the bill is consumer protection rather than anti-crypto legislation. They emphasize the need for urgent controls on crypto ATMs, which often evade existing regulations, leaving consumers vulnerable. Law enforcement officials have highlighted significant financial losses per scam case, and growing fraud complaints linked to these machines.
The bill aligns with a broader trend of tightening crypto ATM regulations globally and within the U.S., aiming to reduce illicit activity, protect consumers, and build public trust in cryptocurrency adoption by limiting anonymity and requiring stringent identity verification.
Critics note potential privacy concerns due to strict KYC rules, but supporters argue these are necessary to safeguard vulnerable populations and halt increasing fraud cases.
It's me, @justmythoughts, an ordinary Hive user looking to make the most of the platform. I will appreciate your support. Follow me for more. Thanks, Gracias :)
Posted Using INLEO