North Dakota moves to tighten control over crypto ATMs to reduce fraud rates.
New Bill on Crypto ATMs
On March 18, North Dakota's Senate approved House Bill 1447 by a 45 to 1 vote. The bill aims to protect residents from crypto-related scams by imposing stricter requirements on crypto ATM operators.
Changes and Requirements
If signed into law, all crypto ATM operators will be required to obtain a money transmitter license, impose a $2,000 daily transaction limit, and post fraud warnings at kiosks. Operators will also need to submit quarterly reports detailing ATM locations, transaction data, and business ownership.
Reasons and Consequences
The push for regulation stems from a rise in crypto ATM-related scams. North Dakota's financial institutions commissioner, Lisa Kruse, revealed that 103 crypto scam complaints were filed with the FBI in 2023, resulting in $6.5 million in reported losses. The bill now returns to the House for approval before heading to Governor Kelly Armstrong for final consideration.
The tightening of crypto ATM regulations in North Dakota is a response to the increase in fraud and aims to protect the public from financial losses.
