North Dakota Senate approves bill capping daily crypto ATM transactions at $2K

Crypto ATM fraud is going through the roof, and people who don’t know what’s happening are losing millions of dollars to scams. North Dakota is stepping up to protect its residents by tightening rules. The state Senate passed House Bill 1447 by a vote of 45-1, meaning that crypto ATMs can once again only handle $2,000 in daily transactions. This bill adds licensing requirements, ways to find fraud and higher withdrawal limits. This means that thieves can’t use these tools to steal. As the bill goes back to the House of Representatives and waits for Governor Kelly Armstrong’s choice, it could lead to stricter rules nationwide for crypto.

Regulations to Stop Crypto ATM Scams

To keep people in North Dakota safe from scams, the Senate passed House Bill 1447, which puts a daily limit of $2,000 on crypto ATM transactions in place. There were worries about the rise in crypto ATM scams, which cost more than $65 million in fraud in the first half of 2024. The bill, which passed 45–1, requires owners to get licenses, keep an eye on fraud, and set higher withdrawal limits. 

Essential parts of House Bill 1447

Along with requiring crypto ATM owners to have a license to send money in North Dakota, the bill also limits daily withdrawals to $2,000 across all ATMs in their network. It also requires fraud alerts, blockchain analytics to keep an eye on fishy behavior, and reports on transaction data and kiosk locations every three months. 

Rise of Crypto ATM Fraud

Through 2023, fraud at Bitcoin ATMs has risen tenfold, and older customers are three times more likely to be a target. Other states have also acted. On March 13, Nebraska Governor Jim Pillen signed a similar fraud prevention act. On February 25, U.S. Senator Dick Durbin suggested federal legislation after hearing about people being scammed into depositing large amounts of money at crypto ATMs.

Conclusion

As North Dakota works to finish House Bill 1447, it is a big step towards managing crypto ATMs and keeping customers safe from fraud. With almost 30,000 Bitcoin ATMs, the U.S. has more than any other country. This law could lead to tighter rules across the country.