A newly passed Wisconsin law will establish consumer protections for cryptocurrency kiosks, addressing fraud-prevention issues affecting residents across the state.

The legislation includes safeguards such as a $1,000 daily transaction limit and mandates that machine operators display fraud warnings to alert potential users about scam risks. The bill also caps fees operators can charge customers.

Erin Fabrizius, associate director for advocacy at AARP Wisconsin, noted that investigations from multiple states show a high percentage of crypto ATM transactions are scams.

"We've heard from Wisconsinites across the state who have lost thousands, sometimes their life savings, to these machines," she said.

State data shows Wisconsin residents lost more than $5.4 million to cryptocurrency scams in 2025.

The law also has a provision for scam victims to potentially recover their losses. The bipartisan bill, which passed unanimously in the State Senate this week, now awaits signature from Wisconsin Gov. Tony Evers.

Wisconsin has more than 700 cryptocurrency kiosks across the state, typically located at gas stations and convenience stores. Fabrizius stressed the importance of recognizing potential scams and warned that legitimate entities never direct individuals to deposit money at crypto ATMs.

"Scams are unfortunately very prevalent, and with increases in technology, becoming very sophisticated," she said, "and I think what's always important to note is that these scammers are skilled in emotional manipulation."

A different proposed law in Wisconsin would make it easier for residents to earn passive income from cryptocurrency through a process called staking. It would update state regulations that currently restrict the activity.

Source: Public News Service