Wisconsin senators have advanced a bipartisan bill to regulate Bitcoin ATMs and combat fraud.
On August 11, Democratic Senator Kelda Roys, supported by six colleagues from her party, introduced Senate Bill 386, a proposal aimed at introducing stricter controls to prevent fraud involving Bitcoin ATMs. The bill closely mirrors Assembly Bill 384, filed on July 31 by Democratic Representative Ryan Spaude.
If approved, the new regulation will require ATM operators to obtain a money transmitter license before starting operations in the state. They will also need to collect detailed customer information, including full name, date of birth, phone number, residential address, and email. Operators must obtain government-issued ID documents, such as passports or driver’s licenses, and verify the user’s identity for each transaction.
The regulation sets a daily transaction cap of $1,000 per customer, aiming to reduce exposure to large-scale fraud, according to bill supporters. It also establishes a maximum fee limit: $5 fixed or 3% of the transaction value, whichever is higher.
Operators will be required to fully reimburse customers who fall victim to fraudulent transactions, especially when law enforcement confirms the illicit nature of the operation within 30 days.
On August 4, the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a notice to financial institutions, requesting reports of suspicious transactions conducted via Bitcoin ATMs. Director Andrea Gacki emphasized that criminals have learned to exploit these devices for illicit purposes.
