Wisconsin lawmakers are taking action against the rise in cryptocurrency kiosk scams. They are introducing two new laws, Senate Bill 386 and Assembly Bill 384, to protect consumers better. This comes after a shocking 99% increase in fraud complaints in 2024, which led to reported losses of nearly $247 million.
Wisconsin to Curb Crypto Kiosk Scams
Senator Kelda Roys and Representative Ryan Spaude, both from the Democratic Party, are leading a new law to protect vulnerable groups. They want to focus on keeping senior citizens safe from scams. The proposed legislation sets forth a comprehensive framework aimed at regulating cryptocurrency kiosks.
The bill from the Wisconsin lawmakers mandates that Kiosk operators must get a license before they can start their business. The bills also require them to set up fraud alerts to warn customers about possible scams. To help prevent identity theft and unauthorized transactions, operators need to verify customers’ identities thoroughly.
Notably, the legislation imposes a cap on daily transactions, limiting them to $1,000 per customer to prevent excessive financial exposure. To improve accountability, the bills require operators to collect certain personal information from customers. This includes names, birthdates, addresses, phone numbers, and verified photo ID.
The legislation also limits transaction fees to either $5 or 3% of the transaction amount to keep costs fair. Additionally, the bills include a simple refund policy that helps victims recover lost funds if they report fraud within 30 days.
Will there be a Republican Pushback?
As lawmakers prepare to discuss consumer protection measures, political tensions may rise. Democrats and Republicans have often disagreed about regulations. Democrats, like Senator Roys, support laws that focus on helping consumers. On the other hand, Republicans usually favor fewer regulations.
The new bills might spark debate, as some Republicans could see them as too restrictive, which could hurt innovation in the state. For example, in the past, Democratic lawmakers pushed back against Republican efforts like the July 2025 “Anti-Crypto Corruption Week” to fight against the GOP’s “Crypto Week”, led by House Democratic Representatives Maxine Waters and Stephen Lynch.
Success will depend on Wisconsin lawmakers working across party lines. Lawmakers in Wisconsin may need to work together to tackle the rising problem of fraud, especially with cryptocurrency. As Wisconsin has 582 Bitcoin ATMs, there is a clear need for rules that protect consumers while still encouraging innovation.
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