- North Dakota Senate passed House Bill 1447, capping crypto ATM transactions at $2,000 per day.
- Operators must be licensed, post fraud warnings, and use blockchain analytics for monitoring.
- The bill aligns with Nebraska and federal efforts to curb crypto ATM fraud.
The North Dakota Senate has voted overwhelmingly in favor of House Bill 1447. A new bill to license cryptocurrency ATMs and enhance consumer protection. The bill, passed 45-to-1 on March 18, reinstates a $2,000 per-user, per-day transaction limit and imposes tough licensing and anti-fraud regulations on crypto ATM operators.
Stricter Regulations for Crypto ATM
Initially introduced on January 15, House Bill 1447 mandates that all North Dakota operators of ATMs. And cryptocurrency kiosks must possess a money transmitter license. It is a move towards making the operators comply with state financial regulations and implement anti-fraud measures.
The bill also mandates that ATM operators post fraud warning notices on their machines and implement blockchain analytics in monitoring suspicious transactions. In addition, operators must report quarterly locations of kiosks, operator identities, and transaction data to regulatory agencies.
The legislation targets increasing concerns regarding cryptocurrency scams. The bill’s sponsor, House Representative Steve Swiontek, noted that the absence of adequate safeguards has allowed scammers to exploit crypto ATMs. According to the FBI, over 5,500 complaints were filed regarding crypto ATMs in 2023, with losses estimated at over $6 million in North Dakota alone.
Nationwide Efforts to Curb Crypto Scams
North Dakota’s action joins the same regulatory move throughout the United States. Nebraska Governor Jim Pillen signed the Controllable Electronic Record Fraud Prevention Act on March 13. Imposing the same restrictions on crypto ATMs. At the federal level. Illinois Senator Dick Durbin filed legislation on February 25 to combat cryptocurrency ATM scams against at-risk adults.
The legislation is now returning to the North Dakota House for a final passage before reaching the desk of Governor Kelly Armstrong to be signed into law. With signing into law, North Dakota will set a new precedent regarding consumer protection within the crypto sector.
