Wisconsin lawmakers are considering new legislation to protect residents from the rising threat of cryptocurrency scams, which have caused thousands of dollars in losses across the state.
A sheriff’s office in central Wisconsin has reported a surge in Bitcoin-related fraud, including one case where a victim lost $40,000. According to Investigative Lt. Scott Goldberg, the proposed restrictions are a welcome development that will provide “financial safety” for the community.
Wisconsin lawmakers have introduced new legislation, Senate Bill 386 and Assembly Bill 384, to regulate the state’s 582 Bitcoin ATMs and combat rising fraud.
The move comes as FinCEN reports a 99% increase in crypto kiosk scam complaints. The proposed bills would place operators under the state’s money transmitter licensing system and introduce strict consumer protections.
These measures include a $1,000 daily transaction cap, a $5 or 3% fee limit, and mandatory refunds for victims who report scams within 30 days. Additionally, machines would be required to display prominent fraud warnings and collect a customer’s full personal details and government-issued photo ID for every transaction.
These efforts align with similar crackdowns in other countries like Australia and New Zealand and a federal bill introduced by Senator Dick Durbin.
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