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19/03/25
34
North Dakota Senate Approves Legislation to Regulate Cryptocurrency ATMs Amid Rising Fraud Concerns
The North Dakota Senate has recently approved a significant piece of legislation aimed at regulating cryptocurrency ATMs, reinstating a provision that limits daily transactions per user to $2,000. This revised measure, known as House Bill 1447, passed with an overwhelming majority of 45 to 1 on March 18. Originally presented to the state’s legislative assembly on January 15, the bill is designed to safeguard residents from potential scams associated with crypto transactions.
Under the new legislation, operators of cryptocurrency ATMs and kiosks must obtain a license as money transmitters within North Dakota. In addition to the daily transaction limit of $2,000, the law mandates that operators issue fraud warning notices to users. Initially, the proposed transaction cap was set at $1,000 per day; however, adjustments made by a House committee expanded this to a limit of $2,000 for the first five transactions within any 30-day period. The Senate’s final decision now firmly establishes the $2,000 ceiling.
Before the bill becomes law, it requires approval from the House for these revisions, after which North Dakota Governor Kelly Armstrong will have the authority to either sign or veto the legislation. Furthermore, the bill obliges ATM operators to implement blockchain analytics systems to detect and report suspicious activities, including potential fraud, to the relevant authorities. Operators will also need to provide quarterly disclosures regarding their kiosk locations and transaction data.
The push for such regulation follows alarming trends in fraud related to cryptocurrency ATMs. The Federal Trade Commission reported that fraudulent activities at these ATMs saw losses surge to over $65 million in the first half of 2024. Consequentially, consumers over the age of 60 are identified as being particularly vulnerable to scams.
In addition to North Dakota’s efforts, similar legislative measures have been enacted in Nebraska, with various state and federal officials advocating for stricter oversight to combat rising fraud in the crypto space.
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