Market News

Lawmakers Target Crypto Kiosks with Stricter Regulations to Protect Consumers

Wisconsin lawmakers are ramping up efforts to regulate cryptocurrency kiosks amid growing concerns about fraud.

The recently introduced Senate Bill 386 and Assembly Bill 384 aim to tackle fraudulent activities linked to Bitcoin ATMs in the state.

The Financial Crimes Enforcement Network has reported a staggering 99% increase in fraud complaints regarding these kiosks in 2024.

Proposed regulations will require kiosk operators to obtain mandatory licenses and implement consumer protection measures, including a daily transaction cap of $1,000.

Operators will also be obligated to conduct thorough identity checks and prominently display fraud warnings on their machines.

These regulatory innovations are designed to reduce anonymity, promoting public trust in the cryptocurrency ecosystem.

Additionally, the legislation mandates that victims of fraud receive refunds if they report incidents within 30 days.

Wisconsin's regulatory efforts reflect a wider trend, with other jurisdictions like Australia and Spokane, Washington, taking similar actions regarding crypto ATMs.

This underscores the increasing urgency among lawmakers to protect consumers while supporting the burgeoning cryptocurrency market.

Both Wisconsin bills are currently under review by the Committee on Financial Institutions, representing a crucial move toward enhanced oversight of crypto kiosks.