Amidst discussions about increasing scams and hacks in the crypto industry, a US senator has proposed a new bill to address crypto ATM fraud.
Senator Dick Durbin's New Bill Proposal
Illinois Senator Dick Durbin noted that senior citizens are increasingly targeted by crypto scams. He provided an example in which a victim believed they were communicating with law enforcement. In response, the Democrats proposed the Crypto ATM Fraud Prevention Act, aimed at not only preventing such incidents but also assisting victims in recovering funds. The bill mandates ATM operators to provide scam alerts and imposes a cap on daily deposits.
Actions by Other States: North Dakota's Example
Lawmakers in North Dakota introduced House Bill 1447, aiming to limit daily crypto ATM transactions to $1,000 with fees capped at $5 or 3% per transaction. Lisa Kruse, commissioner of North Dakota’s Department of Financial Institutions, believes these measures will curb scams. FBI data indicates over 5,000 scams in 2023 alone, resulting in losses exceeding $100 million, highlighting existing security inadequacies.
Impact and Consequences of the New Bill
While welcomed by some crypto ATM operators, concerns arise regarding the bill's impact on business operations due to the currently high fees ranging from 8% to 20%. However, the bill might promote transparency and competition, enhancing transaction safety and reliability.
The new bill signifies an important step towards strengthening the security of crypto ATM usage, potentially reducing scams and increasing user trust in cryptocurrencies.
