The North Dakota Senate has made a pivotal move in regulating crypto ATMs by passing House Bill 1447 with a 45-to-1 vote on March 18. Introduced in January, the bill seeks to implement stringent oversight on crypto ATM operations to deter fraudulent activities and safeguard users. If enacted, it will require operators to obtain licenses, display fraud warnings, and limit daily transactions to $2,000 per user. The legislation, now awaiting the House’s approval of recent amendments, addresses growing concerns over the misuse of crypto ATMs for scams in North Dakota and throughout the United States.
North Dakota’s regulation initiative responds to rising reports of financial scams linked to these machines. Lisa Kruse, the state’s financial institutions commissioner, reported that residents filed 103 complaints about crypto ATM scams in 2023, leading to $6.5 million in losses. To mitigate these issues, House Bill 1447 enforces several critical regulations. Operators must secure a money transmitter license and display fraud warnings on all kiosks. Additionally, they must submit quarterly reports on machine locations, transaction data, and company details, and employ blockchain analytics to flag suspicious activities, aiding authorities in tracking fraudulent actions. Initially, the bill suggested a $1,000 daily transaction limit, later amended to $2,000 for the first five transactions within 30 days. The Senate has simplified this limit to $2,000 per day. The House must review these changes before the bill reaches Governor Kelly Armstrong for final approval.
North Dakota is part of a broader effort to regulate crypto ATMs, with similar measures introduced in other states. On March 13, Nebraska Governor Jim Pillen signed legislation that imposes strict licensing and reporting requirements for crypto ATM operators. Similarly, U.S. Senator Dick Durbin of Illinois has proposed federal legislation targeting crypto ATM scams, driven by cases where victims were deceived into making large deposits under false pretenses. The increase in fraudulent activities involving crypto ATMs has become a national concern. The Federal Trade Commission noted that fraud losses at Bitcoin ATMs surged nearly tenfold between 2020 and 2023, reaching $65 million in just the first half of 2024. Elderly individuals remain the most vulnerable demographic, with those aged 60 and older being three times more likely to fall victim to scams. Despite these challenges, the United States remains the dominant market for crypto ATMs, with 29,819 machines accounting for 78% of the global share.
While North Dakota tightens its regulations on crypto ATMs, the state is also advancing initiatives to integrate cryptocurrency into its financial strategy. Lawmakers have proposed establishing a strategic Bitcoin reserve, aligning with a growing trend among U.S. states to diversify their treasuries with digital assets. This move is similar to proposals in New Hampshire and Pennsylvania, with proponents suggesting that Bitcoin can serve as a hedge against inflation and economic instability. The push for Bitcoin reserves gained momentum following former President Donald Trump’s campaign pledge to position the U.S. as a global leader in cryptocurrency. As lawmakers work to protect consumers from fraud, they also recognize the long-term potential of digital assets in shaping the future of finance. North Dakota’s legislative efforts could influence other states to balance regulation with innovation in their approach to digital assets.
Twitter: 🏧 North Dakota bill would restrict daily withdrawals to $1,000 per day and cap transaction fees at $5 or 3% of the total amount, whichever is higher. #NorthDakota #CryptoATM #CryptoBill
🇺🇸 Nebraska Governor Jim Pillen has signed new legislation that protects users from crypto ATM/kiosks fraud. #BitcoinATM #CryptoATM #NebraskaCrypto
🚀 New Hampshire and North Dakota introduced legislation to establish strategic Bitcoin reserves, marking a growing trend among U.S. states. #Bitcoin #Adoption
