Wisconsin's Bold Move: Are New Kiosk Laws About to Crush Your Crypto Dreams? Find Out Why!

MADISON, Wis. — In a disheartening turn of events, Karin Schmeling, a retired critical care nurse, found herself at the mercy of cryptocurrency scammers. As she attempted to deposit her last $100 bill into a cryptocurrency kiosk, the machine jammed, signaling the moment when she realized she had been duped. “That’s when it hit me, like a coconut cream pie right in the face,” she recounted, a sentiment shared by many victims across the country.

The stories of individuals like Schmeling have propelled Wisconsin lawmakers to take action. On Thursday, a public hearing was held to discuss a proposed bill aimed at imposing strict regulations on cryptocurrency kiosks, which have become increasingly popular yet dangerously exploitable.

The legislation seeks to introduce safeguards including mandatory customer identity verification and a daily transaction limit of $500 per customer. Additionally, it mandates that kiosk companies refund victims who report scams within 30 days. The urgency of these measures comes in light of alarming statistics: according to FBI data, Americans lost over $330 million to scams involving cryptocurrency kiosks in 2025 alone.

In these scams, perpetrators often pose as officials from banks or government agencies, coercing victims into withdrawing cash and depositing it into kiosks under false pretenses. In Schmeling’s case, she was told that her account had been compromised and was linked to child pornography in China, a manipulative fear tactic that left her vulnerable.

“We are handing on a silver platter to scammers a perfect way to hold your grandma hostage for three hours for the sole purpose of taking her money,” Schmeling said, encapsulating the sheer vulnerability that many face in this digital age.

The bill's co-author, State Rep. Pat Snyder, R-Weston, expressed his disbelief at the lack of protections for consumers in this burgeoning market. “I just can’t believe how anyone is defending this crap,” Snyder said passionately. He cited the need for immediate action to protect the most vulnerable members of society, adding, “And if it doesn’t pass, I’m going to put a press release out telling every supervisor in every county to ban these things. We will get it done one way or another.”

Interestingly, during the hearing, representatives from cryptocurrency kiosk companies acknowledged the need for regulation but argued that the proposed bill was overly restrictive. A director of government affairs for Coin Flip, a prominent kiosk operator, stated, “We support daily transaction limits, as long as they’re reasonable.” This highlights the tension between consumer protection and the operational flexibility that the industry seeks.

Schmeling remains hopeful that her personal experience will serve as a catalyst for change. “I’d go through it all over again if all the invisible grandmas and grandpas behind me would be saved from having it happen to them,” she said, reflecting a deep-seated desire to protect others from similar scams.

With hundreds of cryptocurrency kiosks scattered throughout Wisconsin, the stakes are high. As lawmakers grapple with the implications of these machines, the outcome of the proposed legislation could set a precedent for how such kiosks are regulated across the nation, ultimately aiming to strike a balance between innovation in digital finance and the need for consumer protection.