- North Dakota Senate approves House Bill 1447 to regulate crypto ATMs, capping daily transactions at $2,000.
- Crypto ATM operators in North Dakota must post fraud warnings and use blockchain analytics to monitor transactions.
- The bill mirrors broader national efforts, with Nebraska and Illinois passing similar legislation to combat crypto ATM fraud.
The North Dakota Senate approved House Bill 1447 on March 18, aiming to regulate cryptocurrency ATMs within the state. The legislation passed with an overwhelming 45-to-1 vote, introduces a series of measures to curb fraud and enhance consumer protection in the rapidly growing sector of digital currencies. The bill mandates a daily transaction cap of $2,000 per user and requires operators to obtain a money transmitter license.
New Regulations for Crypto ATM Operators
The newly approved bill enforces strict licensing requirements for crypto ATM operators, ensuring they adhere to state financial regulations. Operators will also be required to display fraud warnings on their machines, alongside implementing blockchain analytics to monitor transactions for suspicious activities.
In addition to these measures, operators must submit quarterly reports detailing kiosk locations, operator identities, and transaction data to state regulators. The bill comes as part of a broader initiative to combat the growing number of cryptocurrency scams, especially those involving crypto ATMs.
House Representative Steve Swiontek, a key proponent of the bill, highlighted the increasing vulnerability of consumers to fraud in the absence of adequate safeguards. In 2023 alone, the FBI reported over 5,500 complaints related to crypto ATMs, with losses amounting to more than $6 million in North Dakota.
Nationwide Efforts to Combat Crypto Fraud
North Dakota’s legislative actions mirror similar efforts across the United States. Just days before, Nebraska Governor Jim Pillen signed the Controllable Electronic Record Fraud Prevention Act, which imposes identical restrictions on crypto ATMs.
Additionally, at the federal level, Illinois Senator Dick Durbin introduced legislation in February to address cryptocurrency ATM scams, particularly those targeting vulnerable adults. Once the bill clears its final passage in the North Dakota House, it will be sent to Governor Kelly Armstrong for approval. Upon receiving his signature, the bill will set a new standard for consumer protection in the cryptocurrency sector, positioning North Dakota as a leader in this crucial regulatory effort.
