Wisconsin Senate Bill SB386

Wisconsin 2025-2026 Regular Session

• Introduced: 8/11/25
• Refer: 8/11/25

Caption

Virtual currency kiosks.

Impact

Under SB386, to engage in operating a virtual currency kiosk, individuals must comply with customer identification requirements. Before any initial transaction, operators are required to verify a customer's identity, capturing personal information such as full name, date of birth, and government-issued identification. This layer of security is intended to safeguard consumers against fraud and to create a transparent environment for virtual currency exchanges. Operators must provide prominent fraud warnings at the kiosks to inform users about potential scams targeting virtual currency customers.

Summary

Senate Bill 386 establishes regulatory requirements for the operation of virtual currency kiosks in Wisconsin. The bill mandates that operators of these kiosks be licensed as money transmitters, aligning them with existing regulations governing traditional money transmitters. This move ensures that the rise of virtual currencies does not bypass essential consumer protections and financial regulations that are already in place. A key aim of this legislation is to mitigate potential fraudulent activities associated with virtual currency transactions by imposing strict operational guidelines on kiosk operators.

Contention

While supporters advocate for the bill as a necessary step to regulate the fast-growing virtual currency market, concerns have been raised regarding the implications of these regulatory measures. Critics argue that such regulations could stifle the growth of innovative financial technologies by imposing burdensome licensing and operational requirements. They worry that the costs associated with compliance may dissuade kiosk operators from entering the market, thus limiting consumer access to virtual currency transactions. Moreover, there are apprehensions that rigid regulations could hinder competition among financial service providers in the evolving digital economy.