Wisconsin to Impose Restrictions on Crypto ATMs

Wisconsin lawmakers have introduced two bills aimed at regulating crypto ATMs, prompted by a sharp rise in fraud across the United States.

The proposed measures would require crypto ATM operators to obtain a money transmitter license. They would also impose a transaction limit of $1,000 per day for individual customers. Fees would be capped at $5 or 3% of the transaction amount.

Before conducting their first transaction, users would need to undergo verification by providing their name, date of birth, address, phone number, and uploading a photo ID. Terminals would display fraud warnings. The bills also propose a mechanism for refunding victims if they report the crime within 30 days.

Both bills have been referred to relevant committees for consideration. If passed, the new requirements would take effect in 60 days.

According to FinCEN, complaints about crypto ATM fraud increased by 99% in 2024. Losses suffered by victims rose by 31%, reaching nearly $247 million. As per Coin ATM Radar, Wisconsin hosts 582 such devices, while the U.S. has 30,964.

At the time of writing, the global number of crypto ATMs reached 39,369.

Arjun Vijay, founder of the crypto exchange Giottus, noted that the lack of robust KYC procedures makes cryptocurrency ATMs vulnerable to money laundering. Dilip Kumar, director of Digital South Trust, believes regulation will enhance trust in digital currencies, albeit at the cost of reduced anonymity.

Back in July, New Zealand’s Deputy Minister of Justice, Nicole McKee, announced plans to completely ban crypto ATMs in the country to combat money laundering.