North Dakota Introduces Proposal to Limit Crypto ATM Transactions in Bid to Combat Fraud
North Dakota lawmakers are reviewing a new bill aimed at capping transactions at crypto ATMs to protect consumers from scams.
North Dakota legislators are exploring House Bill 1447, which aims to reduce crypto ATM scams by imposing limits on transactions and improving consumer protections.
The bill, proposed on January 15, 2025, seeks to cap daily withdrawals at $1,000, with transaction fees restricted to $5 or 3% of the transaction amount, whichever is greater. Additionally, it mandates that all crypto ATMs display warnings about potential fraud.
Commissioner Lisa Kruse testified before the House Industry, Business, and Labor Committee on January 22, 2025, emphasizing the repercussions of crypto scams in North Dakota.
North Dakota Residents Lost Millions to Crypto Scams in 2023
Kruse reported that in 2023, there were 103 complaints of crypto scams resulting in losses totaling $6.5 million. The FBI documented $5.6 billion in crypto-related fraud nationally, including 5,500 cases associated with crypto ATMs.
House Representative Steve Swiontek, who sponsored the bill and is the former CEO of Gate City Bank, noted the insufficient consumer protections at crypto ATMs. “Unfortunately, this has allowed criminals to exploit them for theft,” Swiontek remarked, supporting the need for enhanced regulations.
The legislation also advocates for increased consumer awareness through warning displays at ATMs advising users to alert law enforcement in case of suspected fraud.
Josh Askvig, director of the American Association of Retired Persons, praised the bill’s intent to safeguard vulnerable elderly individuals who are often targeted by scammers.
Despite the bill’s protective aims, opposition has arisen from industry groups. Kevin Lolli, from CoinFlip, acknowledged the value of such consumer protections but criticized the suggested fee and transaction caps.
Currently, the United States hosts nearly 30,000 of the 37,155 crypto ATMs operating globally, as noted by Coin ATM Radar. Many of these machines already flag transactions of $2,000 or more to federal authorities.
Australia’s New Task Force Targets Crypto ATMs
Additionally, Australia has initiated a task force by the Australian Transaction Reports and Analysis Centre (AUSTRAC) to ensure compliance with anti-money laundering regulations among crypto ATM operators. AUSTRAC’s CEO, Brendan Thomas, stated that the nature of cryptocurrency transactions can attract criminal elements aiming to launder money.
This article is for informational purposes only and does not constitute investment advice. Always conduct thorough research and speak to qualified professionals before making financial decisions.
