Overview
North Dakota is moving towards a regulatory framework for cryptocurrency ATMs with the recent approval of House Bill 1447 by the state Senate. The legislation establishes licensing requirements for operators of crypto kiosks.
Key Requirements of House Bill 1447:
- Mandates crypto ATM operators to issue fraud warnings on screens.
- Requires operators to secure money transmitter licenses.
- Stipulates the use of blockchain analytics software for fraud detection.
- Operators must submit quarterly reports on kiosk locations and transactions.
- Must appoint a compliance officer to oversee operations.
This initiative addresses increasing concerns regarding scams associated with crypto ATMs, with data from the Federal Trade Commission indicating a significant rise in Bitcoin ATM scam losses since 2020. A report from TRM Labs highlights that crypto ATMs have been involved in over $160 million of illegitimate transactions since 2019.
International Context
The UK Financial Conduct Authority has intensified scrutiny on unregistered crypto ATM operators, leading to the prosecution of individuals operating illegal crypto ATM networks.
Despite growth in Bitcoin prices in 2024, the number of cryptocurrency ATMs has remained stagnant post-2022 according to CoinATMRadar.
