The North Dakota Senate has approved a bill placing limits on crypto ATM transactions to protect users from scams.
New Bill and Its Aims
On March 18, the North Dakota Senate passed House Bill 1447, aiming to strengthen oversight of crypto ATMs. The primary goal is to protect users from scams and unfair practices. The bill introduces a $2,000 daily transaction limit and mandates fraud warning notices at ATMs.
Crypto ATM Operators Requirements
If passed into law, the bill would require crypto ATM operators to be registered as money transmitters. It also mandates the use of blockchain analytics to identify suspicious activity and the submission of quarterly reports on ATM locations and transaction data.
Reactions and Next Steps
The bill now returns to the House for final approval before reaching Governor Kelly Armstrong for signing. The urgency of these measures is highlighted by the increasing number of scam cases involving crypto ATMs across the US. Similar regulatory steps are being taken in other states like Nebraska, where stricter rules have recently been implemented.
The adoption of the bill in North Dakota demonstrates the state's commitment to protecting its citizens from the increasing number of fraudulent schemes associated with crypto ATMs and aims to create a transparent and secure environment for utilizing such technologies.
