Wisconsin Democrats have introduced two identical bills to tighten regulations on crypto kiosks amid a surge in fraud complaints, which reportedly cost victims nearly $247 million in 2024. The bills, Senate Bill 386 and Assembly Bill 384, require operators to obtain money transmitter licenses, implement strict ID verification, offer mandatory fraud alerts, and place caps on fees and daily transaction limits. Daily exchanges are limited to $1,000, and operator fees cannot exceed $5 or 3% of the transaction amount. Each kiosk must prominently display fraud warnings to inform users of potential scams. This legislative action follows a 99% increase in fraud complaints documented by the Treasury Department's Financial Crimes Enforcement Network, highlighting the vulnerabilities associated with crypto kiosks. The proposals aim to enhance consumer protection while balancing the need for digital currency access. The bills are currently pending committee review and are poised to introduce stricter consumer identification regulations within 60 days if passed.

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