Wisconsin lawmakers have introduced two new bills aimed at regulating cryptocurrency ATMs following a dramatic surge in fraud cases across the United States. This move comes in response to a reported 99% increase in fraud complaints involving crypto ATMs in 2024, with victims’ losses climbing by 31% to nearly $247 million.
Under the proposed legislation, crypto ATM operators in Wisconsin would be required to obtain a money transmitter license. The bills also set a daily transaction limit of $1,000 per customer and cap fees at $5 or 3% of the transaction amount, whichever is higher.
Stricter User Verification and Anti-Fraud Measures
Before conducting their first transaction, users would need to complete a full Know Your Customer (KYC) verification process. This would involve providing their name, date of birth, address, phone number, and a photo ID. Additionally, warning messages about potential scams would be displayed on ATM screens.
The proposed regulations also include a refund mechanism for fraud victims—customers who report fraudulent activity within 30 days could have their funds returned.
Industry and Expert Reactions
According to Coin ATM Radar, Wisconsin currently hosts 582 crypto ATMs, while the U.S. as a whole operates nearly 31,000, and the global count has reached 39,369. Industry voices are split: Arjun Vijay, founder of crypto exchange Giottus, stressed that the lack of reliable KYC procedures makes ATMs vulnerable to money laundering, while Dilip Kumar, director of Digital South Trust, believes regulation will boost trust in digital currencies, though at the cost of reduced anonymity.
Global Context
The debate around crypto ATM regulation isn’t unique to Wisconsin. In July, New Zealand’s Deputy Minister of Justice, Nicole McKee, announced plans to ban crypto ATMs entirely to combat money laundering—a far more aggressive approach than Wisconsin’s current proposals.
Conclusion
If passed, Wisconsin’s crypto ATM regulations could set a precedent for other U.S. states facing similar fraud concerns. While the rules might limit certain freedoms for crypto users, proponents argue that stronger oversight will enhance security, increase public trust, and curb criminal activity in the rapidly expanding digital asset sector.
