Lawmakers introduce cryptocurrency protection bill

ASHWAUBENON, Wis (WGBW) – State lawmakers have proposed new legislation adding regulations to protect residents from scams involving cryptocurrency payments.

The proposed bill would restrict the operations of Bitcoin Treasury Machines and require cryptocurrency companies to refund people if they lose money in a scam after being enticed to send the funds through one of the machines. 

Representative Ryan Spaude of Ashwaubenon, one of the authors of the bill, appeared on Civic Media’s Mornings With Pat Kreitlow Show on Thursday, along side of Senator Kelda Roys to discuss the bill.  

“There are many cases both here in Wisconsin and across the country of folks, frequently they’re seniors who are being defrauded,” Spaude said. “They are losing just an incredible amount of money. We need to have some good government, some very basic regulations in place to make sure that people are not cheated and scammed out of their livelihoods, and that is what this bill aims to accomplish.” 

Spaude added that one goal of the bill is to stop scams before they result in theft, with warnings posted at all crypto machines. 

“ These regulations, these licensure requirements, these customer requirements, and warnings on a crypto kiosk, are so we don’t want to have folks in a situation where they are seeking a refund because they’ve been defrauded, Spaude said. 

The bill would allow a maximum of $1,000 to be transferred at one time and limit the fees that cryptocurrency companies can charge. The proposed bill could be considered by the Wisconsin Legislature when it convenes this fall.