Wisconsin Proposes Tightening Rules for Crypto ATMs
Date: 2025-08-13 Author: Gabriel Deangelo Categories: IN WORLD
An initiative has been introduced in the state Senate that would require all crypto ATM operators to obtain a state license to carry out money transfers. In addition, warnings about common types of crypto fraud would appear on each device — both on the body and on the screen. These notifications must be printed in a font of at least 20 points and contain a description of typical fraudulent schemes, such as impersonating a relative, a government employee, or a law enforcement officer. Users will also be advised to cancel the transaction if a request to send funds comes from a stranger.
The draft law provides for mandatory identification of clients. Before the first and each subsequent transaction, it will be necessary to indicate the full name, date of birth, residential address, telephone number, e-mail, and also present an ID with a photo issued by a government agency. Operators will have the right to store a photo of the user in their system.
In addition to verification measures, the document introduces a limit on transactions - no more than $1,000 per day per client. It is also proposed to limit the commission for transactions: the maximum amount will be $5 or 3% of the transfer - depending on which is higher. If the user has become a victim of fraud, he will be able to try to return the crypto assets, provided that he notifies the crypto ATM operator and law enforcement agencies within 30 days after the incident.
The author of the initiative was Senator Kelda Royce. Her proposal largely echoes the bill introduced in July by member of the State House of Representatives Ryan Spode. The previous initiative received the support of the Wisconsin Attorney General's Office, which pointed to the increase in the number of cases of fraud using cryptocurrencies.
Thus, the state authorities intend to create a stricter regulatory system that will simultaneously strengthen the protection of users and limit the opportunities for attackers who use crypto ATMs for criminal purposes.
