Wisconsin Lawmakers Push Twin Bills to Regulate Crypto ATMs and Curb Fraud

Lawmakers in the U.S. state of Wisconsin have filed Senate Bill 386 as a companion to Assembly Bill 384, both aimed at curbing fraud associated with cryptocurrency ATMs. Introduced on August 11 by Senator Kelda Roys and six other Democratic representatives, the bill mirrors an earlier version put forward by Representative Ryan Spaude on July 31 [2]. The twin legislative approach is intended to accelerate the passage process by allowing both chambers to review the same measure simultaneously [2].

The proposed legislation mandates that crypto ATM operators obtain a money transmitting license and implement robust Know-Your-Customer (KYC) procedures for all transactions. Users must provide personal details, including their name, date of birth, address, phone number, and a government-issued photo ID. These measures are designed to enhance accountability and reduce the risk of fraudulent activity [2].

Operators will also be required to limit daily transactions to $1,000 per customer and cap fees at either $5 or 3% of the transaction value, whichever is higher [2]. The bill further stipulates that machines must display clear warnings about the risks of fraud within the user’s field of vision. In the event of a fraudulent transaction, operators will be required to fully reimburse affected users if the fraud is confirmed within 30 days [2].

These measures come amid growing concerns from U.S. regulators. On August 4, the Financial Crimes Enforcement Network (FinCEN) issued a notice urging financial institutions to report suspicious transactions conducted via crypto ATMs, citing their increasing use in fraud, cybercrime, and drug trafficking [1]. The agency also highlighted that elderly individuals are particularly vulnerable to scams where criminals impersonate bank or tech support personnel [1].

Wisconsin is not alone in its efforts to regulate crypto ATMs. New Zealand recently banned all such machines nationwide, while the UK has cracked down on illegal operations, including the seizure of seven ATMs and the arrest of individuals linked to money laundering. Closer to home, the town of Grosse Pointe Farms in Michigan has also passed preemptive regulations despite not currently hosting any crypto ATMs [2].

Supporters of the legislation argue that the KYC requirements will make crypto ATMs less attractive to criminals and improve public trust in digital financial tools. However, critics express concerns over privacy, as the new rules effectively eliminate the anonymity traditionally associated with cryptocurrency transactions [5].

If enacted, the identity verification provisions will take effect 60 days after the bill’s passage. The legislation aligns with broader regulatory trends seen in other parts of the world, suggesting that Wisconsin’s approach could influence future federal and state-level policies on crypto ATM operations [6].

Sources:

[1] Wisconsin Lawmakers Renew Push to Regulate https://cryptonews.com/news/wisconsin-lawmakers-renew-push-to-regulate-crypto-kiosks/

[2] Wisconsin Democrats File Senate Companion Bill to Rein https://decrypt.co/334686/wisconsin-democrats-senate-companion-bill-rein-in-crypto-kiosks/

[5] Wisconsin lawmakers unveil second crypto ATM bill to curb https://invezz.com/news/2025/08/12/wisconsin-lawmakers-unveil-second-crypto-atm-bill-to-curb-fraud/

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