State lawmakers look to add more regulations to cryptocurrency

MADISON, Wis. - The world of cryptocurrency is still largely unregulated -- but some state lawmakers are looking to change that.

Malls, gas stations, you name it, crypto ATMs are popping up everywhere.

A report from earlier this year from the FBI shows from 2023 to 2024, it had a 99% increase in complaints filed over crypto scams.

And this is something the Better Business Bureau is seeing at the state level.

"We have done a study on cryptocurrency. And what we found in our study is that a lack of regulation and a lack of consumer education, really, really has resulted in a dramatic increase, in fraud and financial losses and reports about productivity. Generally, you know, have tripled in maybe more than tripled in the last three years," says Lisa Schiller, Director of investigations for Better Business Bureau Wisconsin.

News 3 Now spoke with Wisconsin State Senator Kelda Roys who is proposing new state legislation for more regulation on crypto currency and crypto kiosk.

This includes:

- Requires a printed and onscreen warning about the potential for fraud.

- Limits transactions to $1,000 per customer per day

- Limits the fees that can be charged to the greater of $5 or 3% of the transaction amount

- Requires the operator to issue a refund if the customer was fraudulently induced to engage in the transaction and reports the fraud to a law enforcement or government agency and the kiosk operator within 30 days

- Requires the operator to follow “know your customer” requirements to prevent fraud and better enable law enforcement to track down criminals attempting to use crypto kiosks to facilitate their crimes.

"Normally when you take money out of your bank account or you send somebody a Venmo, there's a traceability to it. But law enforcement basically said there's nothing we can do. These people are out sometimes thousands and thousands of dollars in an instant. And that money's just gone to a scammer. I said that this is unacceptable. we need to have some guardrails so that people can use this technology. They have the freedom to do it, but they need to be able to do it safely," said Sen. Roys.