The statute’s basic requirements are a $1,000 daily transaction limit, customer identification, receipts for each transaction, and a full refund when victims report scams to the operator and the appropriate Wisconsin authorities within 30 days.
Meanwhile, fraudsters frequently weaponize crypto ATMs to manipulate victims, often targeting older adults. Eighty-six percent of losses from crypto ATM scams involved Americans aged 60 and older, with romance, government impersonation, and tech-support schemes pressuring victims to withdraw large sums of cash and deposit them into local crypto ATMs.
Does the New Law Go Far Enough to Stop Crypto Fraud?
Despite the new protections, Act 226 may not eliminate the risks associated with crypto ATMs. Critics argue that compromises made during the drafting process left some vulnerabilities in place.
Those limitations stem partly from changes made during the legislative process. Critics say lawmakers watered down parts of the bill following pressure from the crypto ATM industry. As a result, an estimated 700 high-risk kiosks remain in convenience stores and gas stations statewide.
Related: Why New Zealand Abandoned Its Crypto ATM Ban for Targeted Controls