Lawmakers in Wisconsin have proposed a new bill that aligns with previous legislation put forth in the House of Representatives.
Senator Kelda Lloyds, along with six other Democrats, recently introduced Senate Bill 386, which acts as a counterpart to Congressional Bill 384, which was also presented on July 31.
This bill mandates that operators of Crypto ATMs or kiosks obtain a remittance license in order to conduct business in the state. They will be required to gather user information, including names, dates of birth, identification numbers, addresses, and email addresses.
Submitting the bill in both chambers is meant to expedite the legislative process, increasing the chances of it becoming law while allowing simultaneous consideration from both halves of the legislature.
Wisconsin’s Initiative to Protect Crypto ATM Users
The proposed legislation stipulates that Crypto ATM operators must collect government-issued identification from customers, like passports and driver’s licenses, and must also photograph the customers. Identity verification will be a requirement for all transactions, with a limit set at $1,000 daily per user.
Moreover, the bill mandates that warnings about potential fraud be displayed in a location that is “within the customer’s field of vision” on the front of the machines.
Crypto ATMs generally impose fees that are significantly higher than those on online exchanges, and the legislation suggests implementing a fee cap.
If an ATM is used for transactions deemed fraudulent, or if the operator is contacted by law enforcement within 30 days confirming the transaction’s illegitimacy, they must issue a full refund to the customer.
Fincen Alerts About Crypto ATM Scams
On August 4, the U.S. Treasury Department’s Financial Crime Enforcement Network (Fincen) released a notification urging financial institutions to report suspicious activities involving Crypto ATMs.
“Criminals are fixated on stealing money from victims and have adapted to using innovative technologies like convertible virtual currency kiosks,” stated Andrea Gakki, Fincen’s director.
Fincen identified three significant illegal activities linked to Crypto ATMs: fraud, cybercrime, and drug trafficking.
The agency has also indicated that older adults are particularly susceptible to scams where fraudsters pose as bank representatives or technical support staff.
A Global Response to Crypto ATMs
Worldwide, regulators are scrutinizing Crypto ATMs due to concerns about their involvement in criminal activities.
On July 17, New Zealand implemented a nationwide ban on Crypto ATMs, citing issues related to money laundering and criminal financing.
Similarly, the UK has taken action against Crypto ATMs, with regulators seizing seven machines and arresting two individuals in southwest London for operating illegal exchanges and laundering money.
Meanwhile, Gross Pointy Farms, a small town near Detroit, Michigan, has proactively passed regulations concerning Crypto ATMs, despite not having any in the area.
