Wisconsin senators push twin bills to crack down on crypto ATM fraud
Wisconsin senators have introduced a companion bill to mirror earlier legislation aimed at tightening regulations on crypto ATMs.
Senate Bill 386, filed by Senator Kelda Roys and six other Democrats, matches Assembly Bill 384 introduced by Representative Ryan Spaude on July 31.
The bills require crypto ATM operators to obtain a money transmitting licence before conducting business in the state.
Operators must collect user details, including name, date of birth, address, phone number, and email address.
A government-issued ID, such as a passport or driver’s licence, must be provided for every transaction.
Operators are required to take a customer’s photo and verify their identity each time they use the machine.
Daily transactions per customer will be capped at $1,000.
Warning labels about fraud risks must be placed prominently on the front of each machine.
The legislation proposes limiting ATM fees to either $5 or 3% of the transaction value, whichever is higher.
Operators will be required to reimburse customers for fraudulent transactions if confirmed by law enforcement within 30 days.
FinCEN issued an August 4 advisory urging financial institutions to flag suspicious crypto ATM transactions.
FinCEN identified fraud, cybercrime, and drug trafficking as the main illicit uses of crypto ATMs.
Elderly users have been flagged as particularly vulnerable to scams involving impersonation of bank staff or technical support.
Globally, regulators are stepping up actions against crypto ATMs over money laundering and criminal financing concerns.
New Zealand banned all crypto ATMs on July 17 due to links with illicit activities.
UK authorities recently seized seven crypto ATMs in southwest London and arrested two individuals on money laundering charges.
Grosse Pointe Farms, Michigan, passed a pre-emptive crypto ATM regulation despite having none in operation.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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