Wisconsin Lawmakers File Senate Bill to Regulate Crypto ATMs

Highlights:

• Wisconsin lawmakers introduced a second bill in two weeks to regulate crypto kiosks amid rising fraud.
• Crypto kiosk fraud complaints nearly doubled last year, with losses rising 31% to $247 million.
• The bills include daily transaction limits, clear fraud alerts, rigorous identity verification, and refunds for victims of fraud.

Wisconsin lawmakers have put forward their second bill in just two weeks to better regulate crypto kiosks. This move responds to a nationwide increase in fraud, which reportedly caused victims to lose nearly $247 million last year. Senate Bill 386 was filed Monday by Senator Kelda Roys and six other lawmakers. It closely mirrors Assembly Bill 384, which was introduced last month by Representative Ryan Spaude (D-Wis.) along with ten co-sponsors. Both bills focus on the 582 Bitcoin ATMs found throughout the state’s gas stations, grocery stores, and convenience stores.

Wisconsin’s SB386 would force #Bitcoin ATMs to require full KYC, photo ID, and cap transactions at $1k. pic.twitter.com/JM2tydjE7i

— TFTC (@TFTC21) August 11, 2025

Wisconsin Proposes Strong Rules to Combat Rising Crypto Kiosk Scams

The bills arrive as the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) reports a big jump in crypto kiosk scams. Fraud complaints have nearly doubled last year, and losses have risen 31% to about $247 million. Wisconsin’s proposals would require kiosk operators to follow the state’s money transmitter licensing rules. They would also add strong consumer protections such as fraud warnings, transaction limits, and stricter identity checks.

If passed, the bills would restrict daily transactions to $1,000 per user and set operator fees no higher than $5 or 3% of the amount. The machines must show clear warnings like: “FRAUD ALERT! Criminals seek to defraud virtual currency customers by impersonating loved ones, government officials, law enforcement officers, or charities.” 

The law would require strong identity checks before transactions, collecting the customer’s name, birth date, address, phone number, and government photo ID. Supporters believe these steps, though reducing privacy, are needed to increase public trust. The bills also require refunds for fraud victims who report the crime within 30 days. This aims to protect older adults and vulnerable people, who are often targeted in scams.

Global Moves Increase Regulation of Crypto ATMs to Protect Users

Wisconsin’s action mirrors similar steps taken internationally. In Australia, AUSTRAC recently implemented tougher regulations for crypto ATM operators, such as stricter cash limits and enhanced monitoring. Last month, AUSTRAC declined to renew the registration of a local crypto ATM operator, Harro’s Empires. The agency also imposed operating restrictions, including transaction caps.

Australia tightens regulations on crypto ATMs as authorities warn about increasing scams. Scam losses via crypto ATMs in Australia exceed 3.1 million Australian dollars in 12 months, according to Australian Federal Police. #cryptonews #Australia #cryptoATM#Crypto #Bitcoin #News pic.twitter.com/lisRXVRr34

— FUND THE FUTURE (@ftf_vc) June 3, 2025

In the United States, Spokane, Washington, has completely banned crypto ATMs due to their involvement in scams that prey on vulnerable residents. Meanwhile, U.S. senators, including Illinois Senator Dick Durbin, are working to strengthen crypto ATM laws at the state and local levels. He proposed the Crypto ATM Fraud Prevention Act, aiming to safeguard consumers without creating unnecessary burdens for legitimate users.

I’m on the Senate floor announcing new legislation—my Crypto ATM Fraud Prevention Act—to help stop fraud at crypto ATMs. Watch. https://t.co/JZqjfYkhat

— Senator Dick Durbin (@SenatorDurbin) February 25, 2025

Crypto fraud is also on the rise. At the Baltic Honeybadger 2025 conference in Riga, Latvia, Alena Vranova, founder of hardware wallet maker SatoshiLabs, warned that violent attacks against crypto holders are increasing sharply this year. These “wrench attacks” use physical violence and kidnappings to steal crypto owners’ private keys.