Wisconsin Assembly Advances Bipartisan Bill to Curb Crypto Kiosk Scams with Strict Transaction Limits
The bipartisan legislation, authored by Rep. Pat Snyder (R-Weston), Rep. Steve Doyle (D-Onalaska), and Sen. Jesse James (R-Thorp), sets a daily transaction limit of $1,000 per person, mandates receipts for every transaction, requires user identification, and allows scam victims to seek refunds.[2]
Targeting a Growing Scam Epidemic
Cryptocurrency kiosks, often resembling regular ATMs, have become tools for scammers who trick victims into depositing large sums of cash. Fraudsters pose as officials, urging people to “protect their assets” or pay fictitious fines by converting money to crypto at these kiosks.[1][2]
“These are essentially major scam machines,” said Erin Fabrizius of AARP Wisconsin. “People are being directed there under duress.”[1] Once the money is converted to cryptocurrency, it is nearly impossible to recover, leading to devastating losses of life savings.[2]
Over 700 such kiosks operate across Wisconsin in locations like convenience stores, gas stations, and restaurants, fueling a surge in these manipulative crimes.[2]
Key Provisions of the Bill
- Daily Limit: Caps transactions at $1,000 per person to prevent large-scale theft.[1][2]
- Receipts Required: Operators must provide printed receipts for all transactions, aiding in tracking and disputes.[2]
- ID Verification: Consumer identification is mandatory for every use, adding a layer of accountability.[2]
- Refund Rights: Victims of scams can pursue refunds, offering recourse where none existed before.[2]
- Licensing: Kiosk operators must be licensed as money transmitters, subjecting them to stricter oversight.[4][6]
AARP Wisconsin State Director Raj Shukla praised the Assembly’s action: “We applaud these legislators for taking action to prevent this crime… The protections this bill puts into place would help ensure that scammers no longer have the upper hand.”[2]
Path Forward: Senate Review Awaits
The bill, which passed the Assembly on Thursday, now moves to the Wisconsin Senate for consideration. Shukla expressed optimism that senators will recognize the issue’s urgency and send it to the governor for signature.[2]
If enacted, AB 968 would mark a significant step in consumer protection amid rising crypto-related fraud. Similar concerns have prompted regulatory discussions nationwide, but Wisconsin’s measure stands out for its comprehensive approach.[1]
Broader Context of Crypto Kiosk Fraud
Crypto kiosks allow users to buy or sell digital currencies like Bitcoin using cash, but high fees — often 10-20% — and lack of regulation make them ripe for abuse. Scammers exploit this by pressuring victims over phone or online, sometimes impersonating law enforcement or tech support.[1]
In Wisconsin, the problem has escalated, with AARP highlighting cases where retirees lost retirement funds. “No one should have to worry about being tricked into handing over their retirement funds to a criminal hiding behind a screen,” Shukla emphasized.[2]
The bill’s amendments, refined during Assembly debates, balance consumer safety with industry operations. FOX6 News reported that the $1,000 limit directly addresses the “large-scale losses” seen in scams.[1]
Legislative Momentum and Stakeholder Support
The bipartisan support underscores the non-partisan nature of consumer protection. Rep. Snyder, a Republican from central Wisconsin, teamed with Democrat Doyle from western Wisconsin, signaling unified resolve.[2]
Legislative documents confirm the bill’s focus on virtual currency kiosks, requiring operators to comply with money transmitter laws and other safeguards.[4][6]
Advocates like AARP, representing millions of older Wisconsinites vulnerable to scams, have lobbied heavily. Their endorsement carries weight, as seniors are frequent targets.[2]
National Implications
Wisconsin’s action could inspire other states. Crypto kiosks number over 30,000 nationwide, with scams costing Americans billions annually, per federal reports. While not directly cited here, the Wisconsin model — limits, IDs, refunds — offers a blueprint.[1][2]
Operators may face compliance costs, but proponents argue the benefits outweigh them by reducing fraud liability and building trust.
What Happens Next?
The Senate’s timeline remains unclear, but with strong Assembly backing and AARP advocacy, passage seems likely. Once approved, the governor could sign it into law swiftly, activating protections within months.
For now, Wisconsinites are urged to beware: Verify requests for cash-to-crypto transactions, especially under pressure. Report suspicions to authorities or the FTC.
This development highlights lawmakers’ proactive stance against evolving financial crimes in the digital age.