Wisconsin has introduced a series of new regulations aimed at increasing consumer protection and curbing fraud risks associated with cryptocurrency kiosks, commonly known as Bitcoin ATMs (BTMs), across the state. These measures come amid a sharp rise in crypto-related scams reported nationally and in Wisconsin, reflecting the growing popularity and complexity of digital currencies.
The Wisconsin Department of Financial Institutions (DFI) is enforcing new rules effective as of late July 2025, including a daily transaction cap of $2,000 per user and mandatory registration and licensing for all bitcoin ATM operators under the state’s Money Transmission Law. This law redesignates the traditional Seller of Checks license as a Money Transmitter license, encompassing virtual currency businesses to ensure more stringent oversight.
Michael Gavigan, assistant chief legal counsel at DFI, explained that the transaction limits serve as an essential consumer safety feature, helping prevent potentially unlimited financial harm from repeated transactions during scams. Victims often face pressure to deposit more funds daily to fraudulent actors, and these caps allow more opportunities for users to recognize and stop such schemes.
Legislation passed in the state legislature, including Assembly Bill 384, requires all virtual currency kiosk operators to obtain licenses as money transmitters. Operators must also display fraud warnings both physically on the kiosks and electronically on their screens, with users required to acknowledge these warnings before proceeding. The law caps user fees at either $5 or 3% of the transaction amount, whichever is greater, to protect customers from excessive charges.
Further consumer protections mandate that operators issue refunds for first-time transactions or if notified within 72 hours of a transaction fraudulently induced. Complaints must be reported to law enforcement or government entities within 30 days to qualify for refunds, providing a recourse mechanism for affected users.
Scams involving BTMs often follow a pattern where individuals receive deceptive calls or messages warning of suspicious activity or unauthorized charges on their accounts. Fraudsters then instruct victims to withdraw cash and deposit it via a crypto kiosk to allegedly safeguard their money—a tactic that has led to significant financial losses nationwide. According to the Federal Trade Commission, Americans lost over $65 million to crypto kiosk scams just in the first half of 2024.
Wisconsin’s legislative efforts align with growing national trends where both Republican and Democratic lawmakers are seeking to balance innovation in emerging financial technologies with robust consumer protections. The state’s approach provides a model for regulating cryptocurrency kiosks, ensuring Wisconsinites can safely engage with digital currencies while minimizing exposure to fraud.
As cryptocurrency usage continues to evolve, Wisconsin’s state regulators remain vigilant, adapting licensing requirements and consumer safeguards to meet the challenges posed by digital financial platforms. Residents and businesses are encouraged to stay informed about these regulatory changes to ensure compliance and enhanced security.