On April 8, Wisconsin enacted Assembly Bill 968 (Act 226), establishing a regulatory framework for virtual currency kiosks. The law, which took effect April 10, defines virtual currency kiosks as electronic terminals or retail locations from which a person may exchange fiat currency for virtual currency, virtual currency for fiat currency, or virtual currency for other virtual currency, including by connecting to a separate exchange. Under the new law, virtual currency kiosk operators must be licensed as a money transmitter under Chapter 217 of the Wisconsin Statutes. The law states that operators must affix a printed fraud alert to the front of each kiosk and display it electronically on screen, requiring affirmative customer acknowledgment before proceeding. For customer identification, operators must: (i) collect certain personal information and a copy of a government-issued identification document before an initial transaction; and (ii) verify identity and photograph the customer for each subsequent transaction.

The law caps daily transactions at $1,000 in fiat currency per customer and requires operators to provide live customer service via a toll-free telephone number during all hours of kiosk operation. Operators must provide physical and electronic receipts detailing transaction terms, fees, and exchange rate, and must issue a full refund, including fees, upon customer request if the customer contacts the operator and a law enforcement or government agency within 30 days to report a fraudulent transaction. The law also requires operators to establish and maintain a written anti-fraud policy. Virtual currency kiosks may not be located within five feet of an automated teller machine, or function as an ATM, and operators must notify local law enforcement of each kiosk location. Customer identification requirements take effect 60 days after the law’s April 10 effective date.