North Dakota lawmakers are discussing a bill to safeguard residents from crypto ATM-related scams.
Crypto ATM Bill Amendments
The bill, known as 'House Bill 1447', proposes stricter regulations for crypto ATMs. Key measures include capping daily withdrawal limits at $1,000 and transaction fees at $5 or 3% of the transaction amount, whichever is higher. Additionally, crypto ATMs must display warnings about potential risks and instruct users to report suspicious activity, noting that funds lost due to errors or fraud may be irretrievable.
Crypto ATM Operators Express Concerns
Operators are displeased with the proposed fee caps, arguing that unique operational costs, such as security and maintenance, are not recognized. Current fees, ranging from 8% to 20%, cover these costs. Limiting transaction amounts could undermine anti-money laundering efforts by forcing users to use multiple ATMs.
Rise in Crypto Scams
Authorities have reported an increase in cryptocurrency-related crimes in recent months. North Dakota residents reported 103 crypto scam cases in 2023, resulting in losses of $6.5 million. Authorities urge vigilance and the implementation of fraud prevention measures.
The bill aims to enhance security in crypto transactions and protect users from fraud. The amendments are still under consideration.
