Home » North Dakota Lawmakers Propose Bill To Cap Crypto ATM Transactions To Prevent Scams

North Dakota Lawmakers Propose Bill To Cap Crypto ATM Transactions To Prevent Scams

by Anna Avery
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North Dakota legislators are deliberating House Bill 1447, a newly introduced measure aimed at reducing crypto ATM-related scams by imposing transaction limits and implementing stricter consumer protections.

The bill, introduced on 15 January 2025, proposes capping daily withdrawals at $1,000, limiting fees to $5 or 3% of the transaction amount (whichever is higher), and requiring fraud warning notices on all crypto ATMs.

Lisa Kruse, commissioner of North Dakota’s Department of Financial Institutions, testified on 22 January 2025 before the House Industry, Business, and Labor Committee, highlighting the impact of crypto scams in the state.

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North Dakota Residents Lost Millions To Crypto Scams In 2023

Kruse reported that in 2023, North Dakota residents filed 103 crypto scam complaints with the FBI, resulting in combined losses of $6.5 million.

Nationwide, the FBI recorded $5.6 billion in crypto-related fraud last year, including over 5,500 cases involving crypto ATMs, which accounted for $189 million in losses.

House Representative Steve Swiontek, the bill’s primary sponsor and former CEO of Gate City Bank, emphasized the lack of consumer safeguards on crypto ATMs compared to traditional ATMs.

“Unfortunately, this has allowed criminals to exploit them for theft,” Swiontek said, underscoring the need for greater protections.

The bill also seeks to bolster consumer awareness by requiring ATMs to display warnings about potential scams. Machines would advise users to contact law enforcement if they suspect fraudulent activity and remind them that funds lost to fraud may be irretrievable.

Josh Askvig, North Dakota’s director of the American Association of Retired Persons, praised the bill for its potential to protect elderly residents, a demographic often targeted by scammers.

However, the proposal has met resistance from crypto industry players. Kevin Lolli, assistant general counsel for crypto ATM operator CoinFlip, expressed support for the consumer protection elements but opposed the fee and transaction caps.

Lolli explained that crypto ATM fees, typically ranging from 8% to 20%, reflect operational costs such as hardware maintenance, armored vehicle services, and rent payments to host businesses.

Currently, the US is home to nearly 30,000 of the 37,155 crypto ATMs operating worldwide, according to Coin ATM Radar. Many machines already report suspicious transactions exceeding $2,000 or large transactions over $10,000 to federal authorities.

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Australia’s New Task Force Targets Crypto ATMs

Last month, Australia’s key financial intelligence unit, the Australian Transaction Reports and Analysis Centre (AUSTRAC), unveiled plans for a new task force aimed at cracking down on cryptocurrency ATM providers that may be violating anti-money laundering (AML) regulations.

At the time, Brendan Thomas, CEO of AUSTRAC, said the accessibility and rapid transaction capabilities of cryptocurrency and crypto ATMs present attractive opportunities for criminal elements seeking to launder money.

The newly formed task force will primarily ensure that operators of crypto ATMs adhere to stringent standards that mitigate the risk of illicit funds circulating through these machines.

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The post North Dakota Lawmakers Propose Bill To Cap Crypto ATM Transactions To Prevent Scams appeared first on 99Bitcoins.





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