New Wisconsin Regulations Introduce Stricter Controls on Cryptocurrency and Bitcoin ATMs
Madison, WI, August 2025 – In response to a significant increase in cryptocurrency-related scams, Wisconsin has implemented new state regulations targeting Bitcoin ATMs and other virtual currency kiosks to better protect consumers and improve oversight of digital currency transactions.
The Wisconsin Department of Financial Institutions (DFI) rolled out these regulatory measures effective late July 2025, as reports of crypto scams surged by nearly 99% since 2023, creating growing concern among lawmakers and consumer advocates.
Key Provisions of the New Regulations
- $2,000 daily transaction limit: Individuals using Bitcoin ATMs (BTMs) in Wisconsin will now face a cap on the amount of cryptocurrency they can purchase per day. This limit is intended to prevent large-scale losses from scams and to give potential victims a chance to detect fraudulent activity.
- Mandatory registration and licensing: Operators of Bitcoin ATMs and virtual currency kiosks must obtain a money transmitter license from the Wisconsin DFI. This requirement is part of the broader Money Transmission Law under Chapter 217, recently revised by Wisconsin Act 267 and effective January 1, 2025.
- Consumer protection measures: Bitcoin ATM operators must post clear warnings regarding the risks of crypto scams and provide guidance on how to avoid falling victim to fraudulent solicitations.
Background and Motivation
Bitcoin ATMs, increasingly common in Wisconsin gas stations, grocery stores, and retail locations, facilitate quick purchases of cryptocurrencies through cash or debit cards. As of mid-2025, Wisconsin hosts roughly 1,000 BTMs statewide.
However, these kiosks have become a popular tool for scammers. The Federal Trade Commission reported that Americans lost over $65 million to Bitcoin ATM-related scams in the first six months of 2024 alone. Scammers typically contact victims claiming suspicious activity on accounts and instruct them to deposit cash into BTMs to “protect” their funds, which instead leads to theft.
Michael Gavigan, assistant chief legal counsel at the Wisconsin DFI, emphasized the regulations’ dual purpose: enhancing data collection on Bitcoin ATM usage and offering consumers safeguards against financial and emotional harm caused by scams. “If there’s not a daily transaction limit, the harm can be essentially unlimited,” he explained. The daily cap provides multiple chances for victims to realize and stop fraudulent activity before bigger losses occur.
Legal Framework and Licensing Requirements
Under Wisconsin law, Bitcoin ATM operators engaging in cryptocurrency sales are considered money transmitters. The revised statute renamed the former “Seller of Checks” license to the “Money Transmitter” license to reflect modern financial services better.
Operators are required to register and maintain their license status through the Nationwide Multistate Licensing System & Registry (NMLS). Failure to obtain licensing by January 1, 2025, prohibits legal operation of Bitcoin ATMs in Wisconsin.
Legislative Assembly Bill 384 further enforces these requirements specifically for virtual currency kiosk operators, ensuring compliance and regulatory clarity.
Consumer Guidance
The DFI advises consumers to remain vigilant for common scam tactics involving Bitcoin ATMs, which often include unsolicited calls about account security issues or false claims related to legal investigations.
Potential victims are urged not to wire or deposit cash into BTMs based on unsolicited instructions and to report suspicious contacts to authorities immediately.
Implications Moving Forward
These steps illustrate Wisconsin’s proactive approach to regulating emerging financial technologies amid rapidly evolving risks in the cryptocurrency space. By imposing licensing, transaction limits, and consumer warnings, state officials aim to balance innovation with effective protections.
As cryptocurrency use continues to expand, other states are watching Wisconsin’s regulatory model closely to shape their own frameworks. For residents, these measures represent a significant advance in safeguarding digital asset transactions.
For further information, Wisconsin residents can visit the Department of Financial Institutions website or contact the office directly for licensing and complaint filings.