Bitcoin News Today: Wisconsin Proposes Strict KYC Rules for Bitcoin ATMs Under SB386 and AB384

Generated by AI AgentCoin World
Tuesday, Aug 12, 2025 12:05 am ET1min read
BTC
--
Aime RobotAime Summary

- Wisconsin lawmakers propose SB386/AB384 to enforce KYC rules on Bitcoin ATMs, requiring ID verification and $1,000 daily purchase limits.

- The bill mandates operators to collect personal data and align with AML frameworks, classifying ATMs as licensed money transmission services under DFI regulations.

- Critics warn of privacy risks and data breaches, while supporters argue the measures combat fraud and money laundering through enhanced compliance obligations.

- Operators face increased compliance costs and potential reduced usage, with analysts noting this aligns with global crypto regulation trends and could influence U.S. states.

Wisconsin lawmakers have introduced a bill that would impose stringent Know Your Customer (KYC) requirements on

Bitcoin
ATM transactions, marking a potential turning point in how the state regulates cryptocurrency infrastructure. Under the proposed legislation, users would be required to present a photo ID for every transaction, regardless of the amount, and daily purchase limits would be capped at $1,000 [1]. The bill, identified as SB386 and AB384, would also require operators to collect and store detailed personal information, aligning Bitcoin ATM services with broader anti-money laundering (AML) frameworks [2].

The Wisconsin Department of

Financial Institutions
(DFI) has classified Bitcoin ATMs as money transmission services, meaning they must now be licensed under the state’s Money Transmission Law. This includes new compliance obligations such as identity verification checks,
data storage
, and posting verification photos for proof of compliance. Additionally, operators will be held financially accountable for fraudulent transactions, a responsibility that has not traditionally been part of their role [3].

While supporters argue that these measures are essential for curbing fraud and money laundering, critics within the crypto community have raised concerns about the erosion of financial privacy. Bitcoin ATMs have long been favored for their convenience and relative anonymity, and full KYC requirements could make them less attractive to users seeking discreet transactions. The new rules may also expose users to the risk of data breaches, as operators will now be required to store sensitive personal information [1].

Operators are also grappling with the potential increase in compliance costs. The added administrative burden of verifying identities, maintaining records, and enforcing transaction limits could reduce machine usage and deter smaller operators from keeping Bitcoin ATMs operational in the state [3]. Analysts have noted that this development is consistent with a global trend of increased scrutiny on cryptocurrency activities, as governments seek to balance regulatory oversight with user accessibility [2].

If the bill passes, it could have a ripple effect across the U.S., with other states potentially adopting similar measures to regulate Bitcoin ATM activity. The legislation is currently in the approval stage, and its final form will determine how significantly it reshapes the landscape for cryptocurrency access in Wisconsin.

Source: [1] Bitcoin News Today: Wisconsin Proposes Stricter KYC ... (https://www.ainvest.com/news/bitcoin-news-today-wisconsin-proposes-stricter-kyc-rules-bitcoin-atms-sb386-2508/)

[2] Wisconsin's Crucial Bitcoin ATM Bill: Understanding New ... (https://www.bitget.com/news/detail/12560604906770)

[3] Wisconsin Bill Mandates Full KYC for Bitcoin ATMs (https://coincu.com/news/wisconsin-kyc-bitcoin-atm-bill/)