Lawmakers in the US state of Wisconsin have introduced a state Senate bill to accompany an earlier proposal filed in the lower house aimed at hindering fraud that is taking place through crypto ATMs.
Senator Kelda Roys, along with six other Democrats, introduced Senate Bill 386 on Monday as a accompanying law in Assembly Bill 384, representative of Democratic Ryan Spaude introduced On July 31.
Under the same proposed bill, crypto or kiosk operators will require a license that sends money to perform state operations and should collect information about their users, including the name, date of birth, number, address and email.
Filing of identical bills in the same room is a tactic to increase the likelihood of a bill that becomes law and accelerates the legislative process as both rooms can be considered at the same time.
Wisconsin looked to warn of crypto atm users
Under the bills, Crypto ATM operators need to collect a government released document from their customers, such as a passport or driver’s license, and will need to take a customer picture.
Operators need to verify their customers’ identity for each transaction, and users will be able to cope with the $ 1,000 worth of transactions per day.
The bills indicate that potential warning labels for fraud must be placed “within the field of customer’s vision” in front of the machine.
Crypto ATMs usually charge higher fees compared to online crypto exchanges, and bills suggest fee operators can charge customers at a flat $ 5 fee or 3% of the transaction amount, whichever higher.
Operators will also have to fully compensate customers if an ATM is used to process a fraudulent transaction, such as an scammer, or if the operator is in contact with law enforcement agencies proving that the transaction is deceptive within 30 days.
Fincen warns of scams in crypto atm
On August 4, the US Treasury’s Financial Crimes Enforcement Network (FINCEN) Issued A notice to financial institutions that ask them to report to the weakening transactions conducted through crypto ATMs.
“Criminals are relentless in their efforts to steal money from victims, and they have learned to take advantage of modern technologies such as the CVC (convertible virtual currency) kios,” said Fincen Director Andrea Gacki.
Fincen said he recognized fraud, cybercrime and drug trafficking as three major prohibited activities conducted through crypto ATMs.
Related: Tasmanian police find top 15 crypto ATM users are scam victims
The agency also confirmed that adults are more vulnerable to scams where malignant actors are pretending to be bank employees, tech support specialists or customer service representatives.
Global Crackdown in Crypto ATMs
Crypto ATMs are in the crosshairs of regulators around the world because of concerns about their use for crime.
On July 17, New Zealand banned crypto ATMs across the countryConsidering their use in criminal money and financing laundering.
The UK also cracked with crypto ATMs, along with The regulators who seize seven crypto ATMs and arrests of two individuals in southern -west of London in July due to suspicion of money laundering and illegally operating a crypto exchange.
The Grosse Pointe Farms, a small town outside Detroit, Michigan, Preemptively passed a regulation on crypto ATMs Despite the town there is no.
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