According to the X account @Bitcoin_Laws earlier today (12th), the Wisconsin State Senate proposed SB386, requiring Bit ATM transactions to fully implement the "Know Your Customer" (KYC) process. The post lists three key provisions: presenting a photo ID for each transaction, a single transaction limit of $1,000, and collecting additional personal information.
Earlier, in August 2nd, Wisconsin revealed the House version AB384, which classifies ATM operators as "Money Transmitters", stipulating daily transactions not exceeding $1,000 and requiring identity and photo verification.
Regulation Becomes More Clear: Reducing the Opportunity to Anonymously Purchase Bit
Both drafts share a common focus: reducing the opportunity to anonymously purchase Bit through mandatory identity review and amount limits.
If AB384 passes, Wisconsin Bit ATM operators will be classified as money transmitters, required to register with regulatory agencies and submit anti-money laundering (AML) reports. With the additional SB386 regulations, daily and single transaction limits will be tightened, potentially requiring operators to upgrade hardware or software to verify documents, retain images, and submit data.
Support and Concerns Coexist
The community discussion is polarized. Some argue that "ATMs are essentially exchanges and should accept equivalent regulation", while others worry the new rules will "squeeze out financially underserved people" who rely more on cash Bit exchanges.
Meanwhile, identity verification requirements may help combat crime and fraud, but additional costs might be transferred to transaction fees, indirectly raising the public usage threshold.
Wisconsin May Form a Demonstration Effect
Whether SB386 and AB384 will ultimately be enacted still depends on votes in both houses. If effective, Wisconsin will become one of the states with the highest KYC requirements for Bit ATMs. Other states might follow this model, creating a "demonstration effect" to further tighten physical channels; conversely, operators might remove machines or move to neighboring states, leading to rule fragmentation.
In the short term, rising operational costs and declining user numbers will be the first market pressures. In the long term, if the crypto industry hopes to integrate into mainstream finance, finding a balance between anti-money laundering, privacy protection, and maintaining accessibility will be an unavoidable issue for regulators and operators.
