TLDR
- Wisconsin senators propose new bill to regulate crypto ATMs and curb fraud risks.
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The bill mandates ID checks and limits crypto ATM transactions to $1,000 per day.
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Crypto ATM operators must fully reimburse users for fraudulent transactions.
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The bill also aims to cap ATM fees at $5 or 3% of the transaction value.
Senators in Wisconsin have introduced a bill to regulate crypto ATMs in a bid to curb fraud and protect users. The bill, titled Senate Bill 386, was introduced on August 12, 2025, by Senator Kelda Roys and six other Democratic lawmakers. It is a companion to Assembly Bill 384, which was filed earlier in the Wisconsin Assembly by Democratic Representative Ryan Spaude. The introduction of identical bills in both chambers is a strategic move to speed up the legislative process.
The bill aims to impose stricter regulations on crypto ATM operators in the state. Under the proposed legislation, these operators would be required to obtain a money transmitting license and collect user data, such as names, addresses, and government-issued ID numbers. By setting up these requirements, the lawmakers intend to increase transparency and reduce the risk of fraud occurring through crypto ATMs.
Key Provisions of the Crypto Bill
The new bill mandates that crypto ATM operators must collect a valid government-issued ID from users, such as a driver’s license or passport. Additionally, operators must take a photo of the user and verify their identity for each transaction.
This measure is aimed at preventing fraud and ensuring that the transactions are secure. Users would also be restricted to a daily transaction limit of $1,000, a measure designed to minimize the potential for large-scale fraudulent activities.
Another key provision of the bill requires operators to post visible warning labels on their machines about the potential for fraud. These labels must be placed “within the customer’s field of vision” and clearly state the risks involved with using crypto ATMs. The goal is to ensure that users are informed about the risks before they make a transaction.
Capping Fees and Reimbursement for Fraud
The proposed crypto bill also addresses the high fees typically charged by crypto ATMs. The legislation seeks to limit the fees that operators can charge, capping them at $5 or 3% of the transaction value—whichever is higher. This provision aims to make crypto ATMs more competitive with other cryptocurrency platforms and exchanges, which typically charge lower fees.
Additionally, the bill requires that operators fully reimburse customers if a fraudulent transaction is processed through their machine.
This includes transactions that are confirmed as fraudulent by law enforcement. The operator would be required to reimburse the customer within 30 days of being notified. This provision provides further protection for users and ensures that operators take responsibility for any fraudulent activities that occur through their machines.
Fighting Fraud and Scams in the Crypto Space
The crypto bill move by Wisconsin lawmakers follows growing concerns over the use of crypto ATMs for scams and fraud. In recent months, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a warning about increasing fraud via crypto ATMs.
According to FinCEN, criminals often use these machines for cybercrime and fraud, including money laundering and drug trafficking.
Crypto ATMs have also been the subject of global regulatory scrutiny. In July 2025, New Zealand banned crypto ATMs due to concerns about their role in criminal activities. Similarly, the UK has cracked down on crypto ATMs, with regulators seizing machines and arresting individuals suspected of operating illegal exchanges.
