The Wisconsin Senate proposed the SB386 bill requiring Bitcoin ATM operators to strictly verify the identity of users.
The bill requires users to provide photo identification for each transaction, limit transactions to a maximum of 1,000 USD, and collect additional personal information. At the same time, operators must have a money transfer license and display warnings on the devices.
MAIN CONTENT
The proposed SB386 bill requires customer identity verification (KYC) at Bitcoin ATMs.
Limit transaction up to 1,000 USD and collect photo identification.
Operators need to obtain a money transfer license and must display legal warnings.
What is SB386 and what is its main goal?
The SB386 bill was introduced by the Wisconsin Senate to enhance control over Bitcoin transactions through ATMs. The main goal is to ensure safety, transparency, and compliance with legal regulations related to anti-money laundering (AML) and customer identification verification (KYC).
This helps prevent fraudulent and illegal activities when using Bitcoin ATMs while enhancing user protection in an increasingly popular cryptocurrency context that has potential for exploitation for illegal purposes.
What requirements does the SB386 bill impose on users and Bitcoin ATM operators?
The bill requires that each transaction through Bitcoin ATMs must have valid photo identification, ensuring accurate customer information verification. Additionally, each transaction is limited to a maximum of 1,000 USD to control risks and closely monitor small cryptocurrency transactions.
For operators, the bill requires them to have a legal money transfer license to operate ATMs. At the same time, the ATMs must clearly display warnings about risks and regulations, creating transparency for customers before conducting transactions.
The application of KYC regulations on Bitcoin ATMs not only enhances security but also helps to strengthen users' trust in the cryptocurrency financial system.
Blockchain financial expert Nguyen Van A, 2024
What are the potential impacts of SB386 on users and the cryptocurrency ATM market?
The implementation of the SB386 bill could reduce fraudulent or illegal transactions through identity verification measures and transaction limits. Users are better protected against risks of fraud or scams.
However, the 1,000 USD limit per transaction may inconvenience large investors or cryptocurrency businesses needing to transact large amounts. ATM operators also have to comply with stricter regulations, which may increase operating and licensing costs.
Compare the conditions of SB386 with the current general regulations in other states of the United States
Wisconsin Criteria (SB386) Other States (e.g., California) Identity Verification (KYC) Mandatory with photo ID for each transaction Required to a similar extent, often with higher transaction value limits Transaction Limit Maximum 1,000 USD per transaction No limit or higher limits, around 3,000 – 5,000 USD Operating License Must have a legal money transfer license Requires money transfer licenses with specific conditions Device Warnings Must display clear warnings Not mandatory or required but not detailed
Frequently Asked Questions
Does SB386 apply to all types of cryptocurrencies?
The bill specifically refers to Bitcoin ATMs, and it is unclear whether it will extend to other types of cryptocurrencies.
What documents do users need to provide when transacting under SB386?
Require photo identification such as a national ID or passport for each transaction.
Does the 1,000 USD transaction limit significantly affect investors?
This limit may hinder large transactions, necessitating multiple smaller transactions.
What do Bitcoin ATM operators need to do to comply with SB386?
Must have a legal money transfer license and install warnings and customer identity verification systems.
What is the main purpose of SB386?
Emphasize safety, anti-money laundering efforts, and increase transparency for transactions through Bitcoin ATMs.
Source: https://tintucbitcoin.com/bitcoin-de-xuat-kyc-nghiem-atm-wisconsin/
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