To help protect people from increasing crypto scams, North Dakota lawmakers have created House Bill 1447, a new law designed to regulate crypto ATMs. The bill suggests new rules and protections for consumers that could alter how cryptocurrency purchases work in the state. As digital currencies become more common in daily deals, North Dakota is working to prevent fraud and protect people’s money.
Dealing with Crypto ATM Fraud
House Bill 1447, presented on January 15, seeks to restrict crypto ATM transactions due to increased scams. The bill suggests limiting cash withdrawals to $1,000 daily, setting transaction fees at $5 or 3% of the total amount, and forcing machines to show warnings about fraud. These steps are designed to reduce fraud related to crypto ATMs, which scammers are using to take advantage of people who are at risk.
Protecting Consumers and Seniors
The bill was created after the North Dakota Department of Financial Institutions shared worrying numbers. They stated that 103 residents were tricked by crypto scams and lost $6.5 million in 2023. The FBI also noted a broader issue, with Americans losing over $5.6 billion in crypto fraud last year. North Dakota is addressing scams targeting elderly residents.Â
Transparency and Consumer Awareness
A main part of the bill is that crypto ATMs must show theft warnings, telling users to contact law enforcement if they think they are being scammed. The bill clarifies that money lost due to mistakes or scams might not be recoverable, so users understand the risks. The aim is to make things more transparent and help people know about possible scams before purchasing.
Industry Response to Transaction and Fee Limits
The bill is supported for its consumer safety features, but not everyone agrees with the suggested transaction limits. Kevin Lolli, a CoinFlip lawyer, worries that limits on fees and transaction amounts could impair how well crypto ATMs work. Even so, North Dakota lawmakers still prioritize protecting users with the bill.
Conclusion
North Dakota’s strict rules on crypto ATMs serve as a good example for other states dealing with problems related to digital currency scams. House Bill 1447 aims for openness, protecting consumers, and holding businesses accountable. It could set a good example for future laws that encourage new ideas while keeping users safe.
