Wisconsin’s Shocking New Law Targets Crypto Scams – Are Your Savings at Risk?

MADISON, WI (WTAQ) — In a significant move to bolster consumer protection, Wisconsin's state legislature is advancing a new bipartisan bill aimed at safeguarding residents from cryptocurrency scams. Assembly Bill 968, which passed in the assembly last month, is designed to impose regulations on cryptocurrency kiosks, devices that have become increasingly popular for digital currency transactions but also pose risks for fraud.

In 2025 alone, Americans fell victim to scams involving crypto-kiosks, resulting in losses exceeding $330 million. This alarming figure underscores the urgency of addressing vulnerabilities associated with these machines.

The bill introduces several critical measures that include:

• Setting daily transaction limits at $1,000
• Requiring kiosk operators to provide transaction receipts
• Implementing consumer-identification requirements for every transaction
• Allowing victims of scams to receive refunds

Representative Dean Kaufert (R-Neenah), co-author of the bill, emphasized the necessity for oversight, stating, “This also requires crypto-kiosk operators to be licensed as a money transmitter with the Department of Financial Institutions. Right now there is no state statute with regards to these crypto machines, and there has to be some oversight.”

Wisconsin currently has over 700 cryptocurrency kiosks located in convenience stores, gas stations, and restaurants across the state. The rise of these machines has not only provided a new avenue for digital currency transactions but has also attracted criminals who exploit the technology. Detective Kevin Bahl with the Green Bay Police Department noted that while scammers do not discriminate, seniors are often targeted due to their accumulated savings. “That’s because they’re the ones with more of the built-up funds; that they can lose a significant amount of money, but we have seen a lot of younger victims too,” he explained. “Victims are losing anywhere between a couple thousand dollars, all the way up to hundreds of thousands of dollars.”

As the senate reconvenes the second week of March, Kaufert is optimistic about the passage of Senate Bill 975, which will bring further scrutiny to these kiosks. If approved, the legislation would advance to the governor for final approval by April 1, with implementation expected around June.

The implications of this legislation extend beyond Wisconsin. As cryptocurrency continues to gain traction across the nation, the necessity for consumer protections becomes clearer. The landscape is evolving, and state governments must respond to the emerging challenges posed by this digital currency frontier. The proposed regulations signify a shift toward a more secure environment for cryptocurrency transactions, ultimately aiming to protect consumers from the rising tide of scams and fraud.

As states grapple with how to regulate this new technology, Wisconsin's proactive approach could serve as a model for other states looking to implement similar measures. The protection of consumers, particularly vulnerable populations, is paramount in this rapidly changing landscape of digital finance.