Wisconsin Legislators Introduce Bills to Regulate Cryptocurrency Kiosks
The state of Wisconsin is taking steps to contain the proliferation of cryptocurrency kiosks, with two draft laws introduced in the past two weeks aiming to assert control over these machines. The legislators’ move comes amid a surge in kiosk-related fraudulent scams, which have resulted in significant financial losses. According to a report by the Financial Crimes Enforcement Network (FinCen), complaints of fraud related to crypto kiosks increased by 99% in 2024, with losses totaling $247 million.
The proposed bills, introduced by Senator Kelda Roys and Representative Ryan Spaude, aim to regulate the 582 crypto kiosks operating in the state. The measures would limit daily transactions to $1,000 and impose stricter identity verification requirements, including fraud notifications and transaction caps. Additionally, the bills would require kiosk operators to register with the state’s money transmitter system and adhere to strict consumer protection guidelines.
Fincen Flags Increase in Crypto Kiosk Fraud
The legislative proposals come as FinCen warns of a significant increase in crypto kiosk fraud. The agency’s report highlights the need for stricter regulations to prevent money laundering and illicit activities. Proponents of the bills argue that the measures would reduce anonymity and increase public trust in the crypto ecosystem. Arjun Vijay, founder of Exchange Giottus, notes that the lack of robust know-your-customer (KYC) protocols has made crypto kiosks susceptible to illicit activities.
The bills also provide for reimbursements for fraud victims who report incidents to the authorities within 30 days. This provision aims to protect vulnerable residents, including the elderly, who are often targeted by scammers. Wisconsin’s efforts to regulate crypto kiosks follow similar initiatives in other countries, including Australia and New Zealand, which have introduced transaction limits and banned crypto kiosks altogether.
International Efforts to Regulate Crypto Kiosks
Wisconsin’s move to regulate crypto kiosks is part of a broader trend of countries clamping down on these machines. In Australia, for example, stricter rules have been introduced, including closer monitoring and transaction limits. Similarly, in New Zealand, crypto kiosks have been banned due to concerns over money laundering and illicit activities. In the United States, the city council of Spokane, Washington, has also banned crypto kiosks, citing their use in fraudulent schemes targeting vulnerable residents.
Legislators in the US Senate are also attempting to tighten laws at the state and local level. Illinois Senator Dick Durbin has introduced a bill to prevent crypto-ATM fraud, which would introduce legislative measures to protect the public while limiting the inconvenience for users. The bill proposes to limit new users to spending no more than $2,000 per day on crypto kiosks, increasing to $10,000 over a 14-day period.
