Over recent years, the proliferation of cryptocurrency kiosks has been accompanied by an increase in fraud schemes. State Senator Kelda Roys and Representative Ryan Spaude have introduced legislation aimed at setting standards to protect consumers from fraudulent practices related to these kiosks. The rise of digital currencies has led to warnings from law enforcement across Wisconsin about scams causing significant financial losses.
According to estimates, there are nearly 30,000 crypto kiosks nationwide today, a sharp increase from just over 4,000 in early 2020. These unregulated kiosks have facilitated substantial theft and fraud, particularly affecting seniors and vulnerable individuals.
State Senator Kelda Roys stated: “As technology evolves, state government needs to ensure that people have the freedom to use it without being defrauded. Everyone deserves accurate information about the risks of certain types of technology, transparency about the costs and fees, and legal guardrails to prevent scams and criminal exploitation.”
Rep. Ryan Spaude emphasized his background in public safety as informing his legislative work: “Unfortunately, the threats Wisconsinites face aren’t limited to physical misconduct. As technology evolves, too often we find ourselves as legislators in a position of playing catch-up while innovation outpaces important and necessary regulation.”
Spaude clarified that their proposed legislation is not against cryptocurrency but rather aims to curb fraud: “This isn’t an anti-crypto bill. It’s an anti-fraud bill.” He acknowledged the role played by the Wisconsin Department of Financial Institutions on this issue.
For more information contact Jalen Knuteson at Sen.Roys@legis.wisconsin.gov or Reece Maccaux at Rep.Spaude@legis.wisconsin.gov.
