14-8-2025 – Wisconsin senators introduced Bill 386, targeting cryptocurrency ATM operators with stringent rules to curb fraud, first reported by Reuters. The legislation mandates operators to hold a valid money transmitter license, collect extensive customer data, and verify identities for every transaction, including a government-issued ID and a photo. Crypto ATMs must also display fraud risk warnings.
The bill caps daily transactions at $1,000 per account and limits fees to $5 or 3% of the transaction amount. If a transaction is confirmed fraudulent within 30 days, operators must fully reimburse customers. With 582 crypto ATMs in Wisconsin, per Coin ATM Radar, the state aims to address rising concerns from the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), which reported a 99% surge in crypto ATM fraud complaints in 2024, with losses totaling $247 million, particularly affecting older users.
The proposed measures respond to growing misuse of crypto ATMs for illegal activities, as highlighted by FinCEN. The bill, now under review by the U.S. House Committee on Financial Services, could set a precedent for other states if passed. Effective within 60 days of approval, the regulations aim to enhance consumer protection and transparency in crypto transactions.
