North Dakota Senate Approves Bill Regulating Crypto ATMs with Transaction Limits

According to Cointelegraph, the North Dakota Senate has approved a bill aimed at regulating cryptocurrency ATMs, reinstating a provision that caps daily transactions at $2,000 per user. This decision follows the Senate's 45-to-1 vote on March 18 to pass House Bill 1447, which was initially introduced to the legislative assembly on January 15. The bill seeks to safeguard residents from scams by implementing new guidelines for crypto ATMs and their operators.The revised bill mandates that crypto ATM and kiosk operators obtain licenses as money transmitters within the state. It also imposes a daily withdrawal limit of $2,000 across their ATM networks and requires the issuance of fraud warning notices. Originally, the bill proposed a $1,000 daily transaction limit, but a House committee later adjusted this to $2,000 for the first five transactions within a 30-day period. The Senate's current version maintains the $2,000 cap, necessitating a return to the House for approval of these changes before North Dakota Governor Kelly Armstrong can either veto or sign it into law.Additionally, the bill obligates operators to employ blockchain analytics to detect and report suspicious activities, such as fraud, to authorities. Operators must also provide quarterly reports detailing kiosk locations, names, and transaction data. During a committee hearing on January 22, House Representative Steve Swiontek, the bill's primary sponsor, emphasized the lack of protective measures for crypto ATMs, which has enabled criminal exploitation.In a related development, Nebraska Governor Jim Pillen signed the Controllable Electronic Record Fraud Prevention Act into law on March 13, targeting fraud prevention. Similarly, U.S. Senator Dick Durbin of Illinois proposed federal legislation on February 25, motivated by a constituent's experience with a scam involving a $15,000 deposit at a crypto ATM to avoid arrest.The Federal Trade Commission reported a significant increase in fraud losses at Bitcoin ATMs, rising nearly tenfold from 2020 to 2023 and exceeding $65 million in the first half of 2024. Consumers aged 60 and older are particularly vulnerable, being three times more likely to fall victim. Coin ATM Radar data indicates that the United States leads globally with 29,822 Bitcoin ATMs, accounting for 78% of the market. Canada follows with 3,486 ATMs, representing 9.2% of the market, while Australia ranks third with 1,613 ATMs, comprising 4.3% of the market.