Crypto ATM Regulation Bill Clears North Dakota Senate

Legislation in North Dakota that sets several protections for cryptocurrency ATMs, such as a daily transaction limit and mandatory fraud warnings, has been approved by the Senate.

On March 18, House Bill 1447 was passed by the Senate with a vote of 45-to-1, moving it closer to becoming law. The bill, which was introduced in January, is intended to prevent scams and strengthen the oversight of cryptocurrency ATM operators.

Should the bill be signed into law, it would necessitate that ATM operators obtain a money transmitter license and enforce a daily transaction limit of $2,000 across all of their machines. The bill also mandates the display of fraud warning notices at kiosks and the submission of quarterly reports containing information on ATM locations, transaction data, and operator details.

As reported earlier by crypto.news, the bill initially suggested a daily limit of $1,000, but lawmakers later revised it to $2,000 for the first five transactions within 30 days. The Senate has since modified it to a straightforward daily limit of $2,000.

Furthermore, operators are required to employ blockchain analytics to identify suspicious behavior and report potential fraud to the relevant authorities.

The bill will now return to the House for approval of these revisions before being presented to Governor Kelly Armstrong for signature.

The bill aims to establish much-needed safeguards to protect residents from financial losses as crypto ATM scams become increasingly prevalent.

During a hearing on January 22, Lisa Kruse, North Dakota's financial institutions commissioner, noted that locals had filed 103 complaints regarding cryptocurrency scams with the FBI in 2023, resulting in reported losses of $6.5 million.

Meanwhile, House Representative Steve Swiontek, who sponsored the bill, contended that the lack of regulation made cryptocurrency ATMs an easy target for crypto scammers.

Cryptocurrency ATMs can be found throughout the United States, with nearly 30,000 machines currently operational. However, the growing number of fraud cases has prompted regulators to propose new legislation aimed at combating misuse.

Last week, Nebraska Governor Jim Pillen signed a similar bill into law, tightening the rules for cryptocurrency ATM operators. The Controllable Electronic Record Fraud Prevention Act, which is part of Legislative Bill 609, introduced new licensing and reporting requirements to curb fraud.