MADISON, Wis. - The cryptocurrency industry, known for its minimal regulation, is facing new scrutiny as the rise of Bitcoin ATMs (BTMs) prompts state agencies to act. These crypto kiosks, still a novelty, have operated largely unchecked until now.
Courtney Anclam, a program specialist at AARP-Wisconsin, notes the ubiquity of these machines, "Anywhere you'd see a normal bank ATM, you might find a crypto ATM as well."
The urgency for regulation is underscored by a startling FBI report: from 2023 to 2024, complaints about crypto scams surged by 99%, with financial losses jumping 31%. Anclam explains the common scam tactics, "People are contacted under false pretenses—like missed jury duty—and coerced into sending money via these ATMs to fraudulent crypto wallets."
In response, the Wisconsin Department of Financial Institutions has introduced strict new guidelines for BTM operators:
- Daily transaction limits capped at $2,000 per customer
- Mandatory warnings displayed at each BTM
- Anti-fraud policies must be established and maintained
Anclam highlights the challenge in tracking scammers, "Cryptocurrency's anonymity means wallets can be used once and discarded, making it nearly impossible to trace transactions."
Operators are now required to disclose their BTM locations to the DFI. For more on avoiding scams, visit AARP Wisconsin's site.
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