Wisconsin is on track to impose significant regulations on cryptocurrency kiosks located at gas stations and convenience stores across the state. The push comes in response to a sharp increase in scams, which, according to official data, cost victims nearly $247 million last year.

Two Nearly Identical Bills – Same Goal

In just two weeks, lawmakers have introduced a second piece of legislation aimed at tightening rules for kiosk operators. The latest, Senate Bill 386, was introduced by Senator Kelda Roys along with six colleagues. It mirrors House Bill 384, submitted last month by Representative Ryan Spaude and ten co-sponsors.

Both bills share the same regulatory framework and have been assigned to the Committee on Financial Institutions.

Alarming Statistics

According to the U.S. Financial Crimes Enforcement Network, complaints about crypto kiosk-related scams surged 99% in 2024. Victims’ financial losses rose 31% to a reported $247 million.

Wisconsin currently has 582 Bitcoin ATMs out of a total of 31,439 across the United States, according to Coin ATM Radar.

Strict Limits and Mandatory Warnings

The proposed measures would require operators to obtain a money transmitter license, implement strict identity verification (name, date of birth, address, phone number, and a government-issued photo ID), and cap daily exchanges at $1,000 per customer. Operator fees would be limited to $5 or 3% of the transaction amount.

Each machine would also be required to display a prominent notice:

FRAUD WARNING! Criminals attempt to scam virtual currency customers by impersonating relatives, government officials, police officers, or charitable organizations.

Experts: Less Anonymity, More Trust

According to Arjun Vijay of crypto exchange Giottus, weak KYC protocols have made these kiosks prime targets for money laundering. While tighter verification reduces anonymity, it “builds public trust and enables safer, more reliable adoption of digital currency,” adds Dileep Kumar HV of Digital South Trust.

The bills also include mandatory refunds for scam victims who report incidents to authorities within 30 days.

A Global Trend Toward Stricter Rules

Wisconsin is not the first to take action – Australia has already imposed transaction limits, and New Zealand is considering a complete ban. In the U.S., the city of Spokane, Washington, voted to remove crypto kiosks entirely after a federal investigation into multi-billion-dollar fraud losses.

If passed, the new customer verification requirements would take effect 60 days after the legislation is signed into law.

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