Important Highlights
- Wisconsin proposes new rules to crack down on crypto ATM scams
- Daily limits, ID checks, and warning labels could soon be required
- If fraud is proven, operators might be required to reimburse victims.
Wisconsin Proposes a Fix for Crypto ATM Scams
If you’ve ever walked past a crypto ATM and thought, “I wonder who actually uses those?” — you’re not alone. But here’s the thing: people do use them. And unfortunately, scammers know that too.
That’s exactly why Wisconsin proposes a new set of rules to make these machines safer and harder to exploit. Lawmakers have introduced two identical bills—one in the State Assembly and one in the Senate—with the goal of cutting down on crypto-related fraud.
Crypto ATMs have become a favorite tool for scammers, especially when targeting older folks who may not fully understand how cryptocurrency works. These bills aim to change that.
So, what would the new rules actually do?
Under the legislation Wisconsin proposes, crypto ATM operators would need to follow some strict new guidelines.
For starters:
- You’d only be allowed to send up to $1,000 per day
- You’d have to show a valid government-issued ID
- The machine would take a photo of you during the transaction
- You’d also have to provide your name, address, phone number, and email
And it doesn’t stop there. Every ATM would also need to display a fraud warning label—front and center—letting users know what kinds of scams to watch out for. These changes aren’t just for show. They’re meant to make scammers’ jobs a lot harder.
But maybe the biggest change? If someone uses one of these machines and falls victim to a scam, the operator could be required to refund their money—as long as law enforcement confirms it was fraud and the victim reports it within 30 days.
That’s a pretty big deal.
Why this matters now more than ever
Crypto scams are growing fast—and not just online. More and more scammers are using physical crypto ATMs to get money from people who don’t even realize they’re being tricked.
The federal government also started taking notice. This month, the financial crime enforcement network of the US Treasury (Finche) warned of an increase in cryptocurrency ATM fraud. He claimed that these machines are being used for everything from cyber crime to drug smuggling.
“Criminals are relentless,” said FinCEN Director Andrea Gacki. Read the full FinCEN advisory here
So, in a lot of ways, what Wisconsin proposes isn’t just a state issue—it’s part of a much bigger conversation happening nationwide.
This isn’t just a Wisconsin problem or solution
The U.S. isn’t the only country dealing with this. Other governments are cracking down on crypto ATMs, too.
- New Zealand banned them altogether in July 2025 after finding they were being used to launder money
- In the UK, authorities seized several illegal crypto ATMs and arrested two people in London
- Even tiny towns like Grosse Pointe Farms, Michigan (yep, they don’t even have a crypto ATM) are passing local laws just to be safe
It is evident that regulators now view cryptocurrency ATMs as a nuisance rather than a novelty.
Will what Wisconsin proposes catch on elsewhere?
The bills Wisconsin proposes could set a new standard for how crypto is handled in public spaces. It is not about reducing cryptocurrency or making it more difficult for legitimate users. The intention is to stop people from taking advantage of others.
If these rules pass, Wisconsin would become one of the first states to put real guardrails in place for crypto ATM use. And honestly? This can be a very good thing – especially for those who are not familiar with doing all this work.
Because let’s face it: Technology is moving fast. Not everyone has time to keep up. And while crypto isn’t going away anytime soon, that doesn’t mean scammers should get a free pass.