Wisconsin is considering new laws to protect citizens against cryptocurrency-related scams, especially through Bitcoin ATMs, aiming to minimize financial losses.
The passage of stricter regulations on cryptocurrency ATM operations will enhance financial safety for the community while requiring companies to publicly warn about risks to prevent increased fraud.
MAIN CONTENT
Wisconsin proposes to limit Bitcoin transactions through ATMs and require refunds in cases of fraud.
A campaign to raise awareness through warning signs and reduce transaction fees has been launched.
Scams through cryptocurrency ATMs are rapidly increasing, with losses reaching hundreds of millions of USD each year.
What is Wisconsin doing to limit risks from cryptocurrency ATMs?
The new law is expected to limit the amount of Bitcoin that can be sent through ATMs to 1,000 USD per day and require companies to refund victims when fraud occurs, ensuring financial rights for users.
According to Lt. Scott Goldberg, an investigator at the police department in Wisconsin, these restrictions are necessary measures to protect the community from increasing risks from cryptocurrency. The law also requires ATMs to display warning signs about fraud risk.
New regulations will help limit financial losses for the community and promote a safer cryptocurrency trading environment.
Scott Goldberg, Deputy Chief of Investigations, Sheriff Office Wisconsin, 2024
The reduction of transaction fees is also included to increase transparency and reduce costs for users, thereby enhancing the experience and trust in local cryptocurrency services.
Why have cryptocurrency ATMs become a preferred tool for scams?
The FBI announced that cryptocurrency ATMs are not like traditional ATMs, are not subject to strict regulations, and victims are not insured against loss, making cryptocurrency ATMs a priority target for criminals.
Reported scams through cryptocurrency ATMs have doubled in 2024 compared to the previous year, with losses up to 247 million USD.
FBI – Cryptocurrency Fraud Report 2024
Mr. Scott Reeder, manager of the UW Credit Union's loss prevention department, warns that these scams are very difficult to resolve as money cannot be recovered, with many cases stalled due to lack of investigative resources.
What are some real examples of scams through cryptocurrency ATMs in Wisconsin?
The case of a woman in West Allis who lost 850 USD after being scammed by a caller impersonating a police officer and forcing her to transfer money from a cryptocurrency ATM to 'settle a fine.' This incident exemplifies the tactics of impersonating law enforcement to defraud inexperienced individuals with cryptocurrency.
This woman recounted that due to her mother having Alzheimer's and not recognizing fake documents, she believed the threats and made a transaction through the ATM before realizing she was scammed.
Expert opinions and responses from lawmakers regarding the new law
State Representative Ryan Spaude, co-author of the bill, emphasized that if the law is strictly enforced, the rate of cryptocurrency ATM fraud will significantly decrease, protecting citizens from unnecessary losses.
Senator Kelda Roys stated: 'Cryptocurrency is rapidly growing, and establishing regulations to protect the people of Wisconsin is essential.' However, the law needs bipartisan agreement to pass as the state government is controlled by a Republican majority.
Mr. Scott Reeder also advises citizens to be vigilant, cautious, and consult financial experts before conducting cryptocurrency transactions through ATMs to avoid falling into scams.
Frequently Asked Questions
How does Wisconsin limit Bitcoin transactions through ATMs?
The new law limits Bitcoin transactions through ATMs to a maximum of 1,000 USD per day to minimize risks and financial losses.
How will users be protected if they are scammed through cryptocurrency ATMs?
Cryptocurrency companies must refund victims if losses occur due to scams through ATMs, according to the proposed legislation.
Why is the scam through cryptocurrency ATMs increasing in Wisconsin?
Due to cryptocurrency ATMs not being strictly regulated, users are not insured against loss, making them easy tools for criminals to exploit.
What should citizens do when they suspect cryptocurrency fraud?
It is advisable to stop transactions, report the situation to authorities, and consult financial experts to avoid losing money.
Will this bill be passed?
Bipartisan support is needed in Wisconsin; without it, the law may not successfully pass.
Source: https://tintucbitcoin.com/wisconsin-xem-xet-luat-chong-lua-dao-tien-dien-tu/
Thank you all for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
