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Wisconsin Legislature: SB975: Bill Text
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SB975: Bill Text
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2025 - 2026 LEGISLATURE
LRB-6204/1
ARG:wlj&emw
2025 SENATE BILL 975
February 6, 2026 - Introduced by Senator
James
, cosponsored by Representatives
Snyder
,
Doyle
,
Gundrum
,
Novak
,
Melotik
,
McCarville
,
Taylor
,
Armstrong
,
Callahan
,
DeSmidt
,
Dittrich
,
Donovan
,
B. Jacobson
,
Joers
,
Kaufert
,
Knodl
,
Kreibich
,
Murphy
,
Mursau
,
O'Connor
,
Ortiz-Velez
,
Penterman
,
Piwowarczyk
,
Sinicki
,
Spiros
,
Subeck
,
Udell
and
Andraca
. Referred to Committee on Utilities, Technology and Tourism.
SB975,1,1
1
An Act
to create
217.12 of the statutes;
relating to:
virtual currency kiosks.
Analysis by the Legislative Reference Bureau
This bill requires a virtual currency kiosk operator to be licensed as a money transmitter and imposes certain regulatory requirements on virtual currency kiosk operators in addition to those that apply to money transmitters.
Under current law, the Division of Banking (division) in the Department of Financial Institutions regulates money transmitters. With exceptions, a person may not engage in the business of money transmission unless the person is licensed by the division. “Money transmission” means selling or issuing payment instruments or stored value, such as checks, money orders, or prepaid cards, to a person located in this state or receiving money for transmission from a person located in this state. “Money” is not defined to include virtual currency such as cryptocurrency.
Under the bill, a person may not engage in the business of operating virtual currency kiosks in this state unless the person is licensed by the division as a money transmitter. A “virtual currency kiosk” is defined as an electronic terminal or retail location, in this state, from which a person may exchange fiat currency (money) for virtual currency or virtual currency for money or other virtual currency. The bill requires a virtual currency kiosk operator to affix a specified printed warning to the front of each virtual currency kiosk and to electronically display this warning on the kiosk’s screen, which the customer must acknowledge to proceed with the transaction.
The bill also includes customer identification requirements. Before entering into an initial transaction with an individual, a virtual currency kiosk operator must verify the individual’s identity by collecting certain information, including the individual’s full legal name, date of birth, and contact information, and obtaining a copy of the individual’s driver’s license, passport, or other government-issued identification document. In each transaction, the virtual currency kiosk operator must verify the customer’s identity before accepting payment from or dispensing funds to the customer and take a photograph of the customer at the virtual currency kiosk.
The bill limits virtual currency kiosk transactions to $500 per customer per day. The bill also limits the fees a virtual currency kiosk operator may charge a customer per transaction to the greater of $5 or 3 percent of the transaction amount. A virtual currency kiosk operator must issue a refund to a customer, upon the customer’s request, for the full amount of a transaction, including fees, if the customer, within 30 days after the transaction, contacted the virtual currency kiosk operator and the Department of Justice, DFI, or a law enforcement agency to inform them of the fraudulent nature of the transaction.
The bill requires a virtual currency kiosk operator to provide customer service during hours in which its virtual currency kiosks are operable and to display a toll-free telephone number for customer service on the exterior or a screen of the virtual currency kiosk. A virtual currency kiosk operator must also provide a physical and electronic receipt containing specified information upon completion of a transaction. A virtual currency kiosk operator must take reasonable steps to detect and prevent fraud and must establish and maintain an antifraud policy.
The bill requires a virtual currency kiosk operator to provide notice to law enforcement of the location of each virtual currency kiosk before the first transaction at that location. The bill also prohibits a virtual currency kiosk operator from locating a virtual currency kiosk within five feet of, or operating a virtual currency kiosk that also functions as, an automated teller machine.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
SB975,1
1
Section
1
.
217.12 of the statutes is created to read:
SB975,2,2
2
217.12
Virtual currency kiosks.
(1)
Definitions.
In this section:
SB975,2,6
3
(a) “Automated teller machine” has the meaning given in s. 134.85 (1) (a) and
4
includes customer bank communications terminals under s. 221.0303, remote
5
service units under ss. 214.04 (21) and 215.13 (46), and remote terminals under s.
6
186.113 (15).
SB975,3,2
1
(b) “Fiat currency” means a medium of exchange that is authorized or adopted
2
by the federal government as part of its currency and is not backed by a commodity.
SB975,3,3
3
(c) “Law enforcement agency” has the meaning given in s. 165.83 (1) (b).
SB975,3,5
4
(d) “Transaction” means a transaction conducted by means of a virtual
5
currency kiosk.
SB975,3,6
6
(e) “Virtual currency” has the meaning given in s. 177.01 (16).
SB975,3,10
7
(f) “Virtual currency kiosk" means an electronic terminal or retail location, in
8
this state, from which a person may exchange fiat currency for virtual currency or
9
virtual currency for fiat currency or other virtual currency, including by connecting
10
to a separate virtual currency exchange.
SB975,3,12
11
(g) “Virtual currency kiosk operator" means a person engaged in the business
12
of operating virtual currency kiosks in this state.
SB975,3,15
13
(2)
License required.
No person may engage in the business of operating
14
virtual currency kiosks in this state unless the person is licensed under this
15
chapter.
SB975,3,18
16
(3)
Warning.
(a) A virtual currency kiosk operator shall affix to the front of
17
each virtual currency kiosk, within the customer’s field of vision, the following
18
printed warning, capitalized and underlined as indicated:
SB975,4,2
19
“FRAUD ALERT! Criminals seek to defraud virtual currency customers by
20
impersonating loved ones, government officials, law enforcement officers, or
21
charities; threatening jail time; stating that your identity was stolen or your
22
accounts frozen; or claiming your computer was hacked. IF SOMEONE YOU
23
DON’T KNOW IS ASKING YOU TO SEND VIRTUAL CURRENCY FROM THIS
24
MACHINE,
DO NOT PROCEED WITH THE TRANSACTION
. LOSSES DUE TO
1
FRAUDULENT OR ACCIDENTAL TRANSACTIONS MAY NOT BE
2
RECOVERABLE.
SB975,4,3
3
NOTICE: Virtual currency may be traded for free in online exchanges.”
SB975,4,8
4
(b) A virtual currency kiosk operator shall ensure that, as part of each virtual
5
currency kiosk transaction, the warning under par. (a) is also displayed
6
electronically on the virtual currency kiosk screen before any other disclosure
7
appears on the screen and that the customer affirmatively acknowledges the
8
warning before the customer may proceed with the transaction.
SB975,4,10
9
(c) The warning affixed to the front of a virtual currency kiosk under par. (a)
10
shall be printed in type size no smaller than 20 point.
SB975,4,13
11
(4)
Customer identification.
(a)
Collection of information.
Before entering
12
into an initial transaction with an individual, a virtual currency kiosk operator
13
shall verify the individual’s identity by doing all of the following:
SB975,4,14
14
1. Collecting all of the following information pertaining to the individual:
SB975,4,15
15
a. Full legal name.
SB975,4,16
16
b. Date of birth.
SB975,4,17
17
c. Telephone number.
SB975,4,18
18
d. Residence address.
SB975,4,19
19
e. Email address.
SB975,4,21
20
2. Obtaining a copy of the individual’s driver’s license, passport, or other
21
government-issued identification document that identifies the individual.
SB975,4,23
22
(b)
Identity verification for each transaction.
In each transaction with a
23
customer, a virtual currency kiosk operator shall do all of the following:
SB975,5,2
1
1. Verify the customer’s identity before accepting payment from or dispensing
2
funds to the customer.
SB975,5,4
3
2. Take a photograph of the customer in a retainable format at the virtual
4
currency kiosk.
SB975,5,7
5
(c)
False or multiple identities.
1. A virtual currency kiosk operator may not
6
complete a transaction with a customer unless the virtual currency kiosk operator
7
has verified the customer’s identity as provided in par. (b) 1.
SB975,5,11
8
2. A virtual currency kiosk operator may not allow a customer to engage in a
9
transaction under any name or identity other than the customer's own true name
10
and identity, or under any account other than an account associated with the
11
customer’s true name and identity.
SB975,5,16
12
(5)
Virtual currency kiosk location.
(a)
Notice.
A virtual currency kiosk
13
operator shall provide notice of the location of each virtual currency kiosk to a law
14
enforcement agency having territorial jurisdiction at that location. The virtual
15
currency kiosk operator shall provide this notice before entering into its first
16
transaction with an individual at that location.
SB975,5,19
17
(b)
Automated teller machines.
A virtual currency kiosk operator may not
18
locate a virtual currency kiosk within 5 feet of, or operate a virtual currency kiosk
19
that also functions as, an automated teller machine.
SB975,5,23
20
(6)
Transaction restrictions and refunds.
(a)
Daily transaction limit.
A
21
virtual currency kiosk operator may not accept from or dispense to a customer, by
22
means of any virtual currency kiosk, more than a total of $500 in fiat currency in
23
the same day.
SB975,6,5
24
(b)
Fee limit.
A virtual currency kiosk operator may not collect fees or other
1
charges from a customer in connection with a transaction that exceed the greater of
2
$5 or 3 percent of the transaction amount. For purposes of this paragraph, “fees or
3
other charges” includes any difference between the price charged to a customer to
4
buy, sell, exchange, or convert virtual currency and the prevailing market value of
5
the virtual currency at the time of the transaction.
SB975,6,12
6
(c)
Refund in certain circumstances.
Upon request of a customer, a virtual
7
currency kiosk operator shall issue a refund to the customer for the full amount of
8
any transaction, including any fees charged in association with the transaction, if,
9
not later than 30 days after the transaction, the customer contacted the virtual
10
currency kiosk operator and the department of justice, the department of financial
11
institutions, or a law enforcement agency to inform them of the fraudulent nature of
12
the transaction.
SB975,6,17
13
(7)
Operational requirements; fraud prevention.
(a)
Customer service.
14
A virtual currency kiosk operator shall provide live customer service through a toll-
15
free telephone number during all hours in which any of its virtual currency kiosks
16
is operable. The virtual currency kiosk operator shall display this telephone
17
number on the exterior or a screen of each virtual currency kiosk.
SB975,6,20
18
(b)
Receipts.
Upon completion of a transaction, a virtual currency kiosk
19
operator shall provide to the customer a physical and electronic receipt containing
20
all of the following information:
SB975,6,23
21
1. The name and contact information of the virtual currency kiosk operator,
22
including a telephone number established by the virtual currency kiosk operator to
23
answer questions and register complaints.
SB975,7,2
1
2. Identification of relevant state law enforcement agencies and government
2
agencies for reporting fraud.
SB975,7,4
3
3. The type, value, date, and precise time of the transaction, along with the
4
transaction hash and each applicable electronic record address.
SB975,7,6
5
4. The name and contact information of both the sender and the designated
6
recipient of the transaction.
SB975,7,7
7
5. All fees charged.
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