North Dakota Advances Bill to Regulate Crypto ATMs
North Dakota’s Senate has approved a bill to regulate cryptocurrency ATMs. House Bill 1447 passed with a 45-to-1 vote on March 18. This bill aims to protect users from scams by imposing rules on crypto ATM operators.
The bill requires operators to get a money transmitter license. It sets a $2,000 daily transaction limit. It also mandates fraud warning notices at ATMs. Operators must submit quarterly reports on ATM locations, transactions, and thier details.
Originally, the bill proposed a $1,000 daily cap. Lawmakers later raised it to $2,000 for the first five transactions within 30 days. The Senate simplified it to a $2,000 cap per day.
Operators must use blockchain analytics to spot suspicious activity. They must report potential fraud to authorities.The bill now goes back to the House for approval of these changes.
As crypto ATM scams rise,this bill aims to protect residents. In 2023, North Dakota saw 103 crypto scam complaints, with losses of $6.5 million. House Representative Steve Swiontek, who sponsored the bill, said the lack of regulation made crypto ATMs easy targets for scammers.
With nearly 30,000 crypto ATMs in the US,fraud cases are pushing regulators to act. Last week, Nebraska Governor Jim Pillen signed a similar bill into law. The Controllable Electronic Record Fraud Prevention Act introduced new licensing and reporting requirements.
