North Dakota Senate passes bill to regulate crypto ATMs

A North Dakota bill that places various safeguards on cryptocurrency ATMs, including a daily transaction cap and mandatory fraud warnings, has passed the Senate.

On March 18, House Bill 1447 cleared the Senate in a 45-to-1 vote, bringing it a step closer to becoming law. The bill, introduced in January, is designed to curb scams and tighten oversight of crypto ATM operators.

If signed into law, the bill would require ATM operators to be licensed as money transmitters and enforce a $2,000 daily transaction limit across their machines. It also mandates fraud warning notices at kiosks and quarterly reports on ATM locations, transaction data, and operator details.

As previously reported by crypto.news, the bill originally proposed a $1,000 daily cap, but lawmakers later adjusted the limit to $2,000 for the first five transactions within 30 days. Now, the Senate has simplified it to a straight $2,000 cap per day.

Additionally, operators must use blockchain analytics to flag suspicious activity and report potential fraud to authorities. 

The bill now heads back to the House for approval of these changes before landing on Governor Kelly Armstrong’s desk.

As crypto ATM scams become more popular, the bill aims to introduce much-needed safeguards to protect residents from financial losses. 

During a Jan. 22 hearing, Lisa Kruse, North Dakota’s financial institutions commissioner, noted that locals had filed 103 crypto scam complaints with the FBI in 2023, with reported losses hitting $6.5 million.

Meanwhile, House Representative Steve Swiontek, who sponsored the bill, argued that the lack of regulation made crypto ATMs an easy target for crypto scammers.

Crypto ATMs are widely available across the US, with nearly 30,000 machines in operation. However, increasing fraud cases have pushed regulators to introduce new laws aimed at cracking down on misuse.

Last week, Nebraska Governor Jim Pillen signed a similar bill into law, tightening rules for crypto ATM operators. The Controllable Electronic Record Fraud Prevention Act, part of Legislative Bill 609, introduced new licensing and reporting requirements to curb fraud.

  • Aniket Pujari

    Aniket Pujari

    Aniket Pujari, a graduate in Financial Markets, is the founder of Minute To Know News, a digital platform providing daily news updates on cryptocurrencies, finance, and economics. With a passion for finance and technology, Aniket has been exploring the world of cryptocurrencies since 2015, building a deep understanding of these rapidly evolving industries.

    Related Posts

    Should Bitcoin, Ethereum, XRP traders buy with Trump push ahead of FOMC meeting

    Bitcoin, Ethereum and XRP gain slightly on Wednesday as traders gear for the U.S. FOMC rate decision at 2 PM ET. Unlike previous bear markets, traders are seeing shorter bear…

    Pi Network Sinks to 17th Largest Crypto by Market Cap, Expert Warns of Further Losses as Some Traders Rotate Into BEST ICO

    Remember all the hype around Pi Network (PI)? It seems the excitement might be fading, as this once-promising project has slipped to 17th place in the crypto market cap rankings.…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    Should Bitcoin, Ethereum, XRP traders buy with Trump push ahead of FOMC meeting

    Should Bitcoin, Ethereum, XRP traders buy with Trump push ahead of FOMC meeting

    Pi Network Sinks to 17th Largest Crypto by Market Cap, Expert Warns of Further Losses as Some Traders Rotate Into BEST ICO

    Pi Network Sinks to 17th Largest Crypto by Market Cap, Expert Warns of Further Losses as Some Traders Rotate Into BEST ICO

    Best Wallet Presale Races Past $11M as It Receives Analyst Endorsement

    Best Wallet Presale Races Past $11M as It Receives Analyst Endorsement

    Binance adds MUBARAK and Broccoli to first vote to list token batch

    Binance adds MUBARAK and Broccoli to first vote to list token batch

    North Carolina and Minnesota Introduce Legislation to Expand Bitcoin Adoption

    North Carolina and Minnesota Introduce Legislation to Expand Bitcoin Adoption

    NBA may bring back NBA Inside Stuff highlight show