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Wisconsin Targets Crypto Kiosk Scams With New Senate, Assembly Bills

Key Takeaways

  • ​Wisconsin bills propose licensing, ID checks, limits, and fraud alerts for crypto kiosk operators to combat scams;
  • Daily transactions would be capped at $1,000, with fees limited to $5 or 3% of the amount exchanged;
  • Refunds are required if scams are reported within 30 days, and ID rules start 60 days after the law is passed.

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Wisconsin Targets Crypto Kiosk Scams With New Senate, Assembly Bills

Wisconsin legislators are taking new steps to address scams linked to cryptocurrency kiosks.

The decision follows a federal alert showing a 99% increase in complaints about these machines in 2024, with reported losses rising 31% to nearly $247 million.

Senator Kelda Roys, joined by six other lawmakers, introduced Senate Bill 386 on August 11. The new bill matches Assembly Bill 384, filed on July 31 by Representative Ryan Spaude and ten co-sponsors.

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The proposals would require kiosk operators to register under Wisconsin’s money transmitter licensing system. They also set rules for customer protection, including fraud alerts, identity checks, transaction limits, and caps on service fees.

Under the bills, users could exchange no more than $1,000 per day, and fees could not exceed $5 or 3% of the transaction amount.

Each machine would also display a clear notice stating:

FRAUD ALERT! Criminals seek to defraud virtual currency customers by impersonating loved ones, government officials, law enforcement officers, or charities.

Before a first-time transaction, operators would need to collect a customer’s name, date of birth, address, phone number, and a government-issued photo ID.

Another part of the plan focuses on refunds. If a victim reports a scam to law enforcement within 30 days, the operator would be required to return the money.

If passed, the identity verification rules would take effect 60 days after the bills become law.

On August 4, the US Treasury’s Financial Crimes Enforcement Network (FinCEN) warned about the growing use of crypto kiosks in scams. What did the agency say? Read the full story.

Aaron S. Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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