People often imagine the crypto market as this wild gangster’s playground, fast money, risky tricks, and the crypto ATMs, the new hustlers in town. And sometimes, they’re right unfortunately.
But Wisconsin’s senators just stepped in , and they ain’t playin’ around anymore. They’ve rolled out a plan, a bill, to clamp down on scams happening right at those crypto ATM machines.
Money transmitting license for the operators
So, it all started when the House dropped Assembly Bill 384, wanting to make these crypto ATMs cleaner, tighter, and way less shady.
But now, the Senate crew, led by Senator Kelda Roys and six other Democrats, said, hey, we want in, and introduced Senate Bill 386 to back it up, matching the others note for note.
Why? ‘Cause when you want a law to hit fast, you gotta hit both chambers at once, double the fire, double the muscle.
The bills? They’re giving these crypto ATM operators a new rulebook. First off, anyone running one of these machines needs a legit money transmitting license. No more flying under the radar.
Then, they gotta know who’s standing in front of the machine, real names, DOB, phone numbers, addresses, emails, every bit.
And get this, they’ll need your government ID, like your driver’s license or passport, plus a photo. Think of it as the bouncer checking IDs before you enter the club.
Warning labels on the machines
In addition, these machines gotta show a warning label, smack dab in your face, saying scams can happen here.
No fine print. And speaking of fees, these crypto ATMs have been charging rates so high you’d think they were running a loan shark operation.
The new rules say no more than a flat $5 fee or 3% of your transaction, whichever is bigger. Fair’s fair, right?
What if you get scammed anyway? Well, the operators have to cough up full refunds if law enforcement confirms the fraud within 30 days.
It’s like a safety net for all the regular people who just want to buy some crypto without getting fleeced.
Play by the rules
This move echoes warnings from the US Treasury’s FinCEN , which just last month told financial institutions to watch out for crypto ATM scams, it’s a hotspot for fraud, cybercrime, and even drug trafficking.
The most vulnerable? Elderly people getting conned by scammers pretending to be bank reps or tech support. It’s a nasty game, but Wisconsin’s trying to clean house.
So, the crypto ATM hustle might’ve been flying under the radar for too long, but now the law’s stepping in hard and fast.
If you’re a crypto user or just curious about this new market, know this, Wisconsin’s sending a message.
You wanna play in the crypto game? Play by the rules, or get left in the dust.
Cryptocurrency and Web3 expert, founder of Kriptoworld
With years of experience covering the blockchain space, András delivers insightful reporting on DeFi, tokenization, altcoins, and crypto regulations shaping the digital economy.
