NEWS: This week, Wisconsin Gov. Tony Evers signed into law two League-supported bills that will benefit credit unions and their members.
(League staff and members from Blackhawk Community Credit Union attended the bill signings)
Financial education credits for work at in-school branches
SB 921 (now 2025 Wisconsin Act 223) allows employment at an in-school credit union branch to fulfill the 1/2 credit of personal financial literacy education required for high school graduation in Wisconsin.
The bill was passed and signed as the result of strong, persistent outreach and advocacy by The League’s Government Affairs team, members of our Government Affairs Committee, and credit union activists who participated in this spring’s State Government Affairs Conference (GAC). The bipartisan legislation was introduced during State GAC and passed both houses of the legislature on voice votes.
Virtual currency kiosks & fraud prevention
AB 968 (now 2025 Wisconsin Act 226) imposes restrictions on cryptocurrency kiosks to help prevent financial fraud.
These kiosks, which are often found in convenience stores, gas stations, and grocery stores, let people convert cash into cryptocurrency, typically charging fees of 20% to 30% or more. But often, they are reported to be used in scams, particularly those targeting seniors and other vulnerable people. Credit unions regularly help members who have been victims of financial scams, which have increasingly involved the use of cryptocurrency kiosks in recent years.
“Law enforcement across Wisconsin is experiencing the real-world impact of these scams every day,” said Wisconsin Chiefs of Police Association President Chief Danny Thompson. “An investigation by the Iowa Attorney General determined that 98% of funds transmitted through these machines were scam transactions.”
In addition, the kiosks can be used to move funds from drug trafficking and other organized criminal activity. Once cash is converted to cryptocurrency, the funds can be transferred within minutes through multiple digital wallets, often routed overseas and difficult to recover.
The new Wisconsin law includes these protections, among others:
- Virtual currency kiosk operators must be state-licensed.
- Kiosk operators must inform local law enforcement about the locations of their kiosks, which cannot be within five feet of an ATM, and which cannot operate as both crypto kiosks and ATMs.
- Kiosk operators must gather identifying information from an individual before letting them make an initial transaction, including collecting a copy of their government issued ID. Then the operator must verify the person’s identity and take their photo each time the person uses a kiosk to make a payment or get funds.
- A kiosk operator may not accept from or dispense to a customer more than $1,000 on the same day via any kiosk.
- Kiosk operators must refund the full amount of a transaction, plus fees, if a customer contacts them (and law enforcement) within 30 days about the fraudulent nature of the transaction.
- The front of each kiosk must display this warning:
FRAUD ALERT! Criminals seek to defraud virtual currency customers by impersonating loved ones, government officials, law enforcement officers, or charities; threatening jail time; stating that your identity was stolen or your accounts frozen; or claiming your computer was hacked. IF SOMEONE YOU DON’T KNOW IS ASKING YOU TO SEND VIRTUAL CURRENCY FROM THIS MACHINE, DO NOT PROCEED WITH THE TRANSACTION. LOSSES DUE TO FRAUDULENT OR ACCIDENTAL TRANSACTIONS MAY NOT BE RECOVERABLE. NOTICE: Virtual currency may be traded for free in online exchanges.
Compliance Roundtable – September 16 (In-Person)
Join a member of The League’s compliance team as they lead a discussion on the latest changes in regulations and need to know information to keep your credit union in compliance. You can find more information or register on our website.