Wisconsin cracks down on crypto ATMs amid fraud concerns

14 August, 2025

~ 2 min

Wisconsin is taking action to regulate cryptocurrency ATMs in an effort to combat a surge in fraud. Lawmakers have proposed new rules aimed at protecting consumers and preventing illicit activities.

Two new bills introduced in Wisconsin seek to bring cryptocurrency ATMs under stricter control. The move comes as authorities across the United States have seen a sharp increase in fraud related to these machines.

So, what exactly are these new regulations?

First, operators of crypto ATMs would need to obtain a money transmitter license, bringing them under the same regulatory umbrella as traditional financial services. Second, there would be a limit of $1,000 USD per day on transactions for each customer, and fees would be capped at either $5 USD or 3% of the transaction amount.

To further enhance security, first-time users would be required to verify their identity by providing personal information and uploading a photo ID. The ATMs themselves would also display prominent warnings about the risk of fraud. Furthermore, the proposed legislation includes a mechanism that would allow victims of fraud to recover their funds if they report the crime within 30 days.

The bills have now been passed on to the relevant committees for review. If approved, these new regulations would go into effect 60 days after passage.

The need for these regulations is clear. According to FinCEN, complaints of fraud involving cryptocurrency ATMs jumped by a staggering 99% in 2024, with losses to victims increasing by 31% to nearly $247 million USD. Currently, Wisconsin has 582 crypto ATMs in operation, while the United States as a whole has 30,964. Worldwide, there are 39,369 of these machines.

Arjun Vijay, founder of the Giottus cryptocurrency exchange, pointed out that the lack of strong “Know Your Customer” (KYC) procedures makes crypto ATMs vulnerable to money laundering. Dilip Kumar, Director of Digital South Trust, believes that while regulation may reduce anonymity, it will ultimately increase trust in digital currencies.

Wisconsin isn’t alone in considering such measures. Back in July, New Zealand’s Deputy Minister of Justice, Nicole McKee, announced plans to ban crypto ATMs entirely in an effort to combat money laundering.