North Dakota Senate Passes Crypto ATM Bill, Capping Daily Transactions at $2,000

The North Dakota Senate has passed a bill that introduces new regulations for cryptocurrency ATMs, including a provision that limits daily transactions to $2,000 per user. This provision was a point of contention, as it was initially removed by the state’s House but later reinstated by the Senate. 

On March 18, the Senate passed **House Bill 1447** with a resounding 45-to-1 vote. The bill, which was first introduced on January 15, aims to protect residents from scams and introduce stricter oversight for crypto ATM operators in the state.

Key Provisions of the Bill

The Senate-approved version of the bill imposes several key regulations on cryptocurrency ATMs and their operators:

1. Licensing**: Crypto ATM operators will be required to obtain licenses as money transmitters, ensuring that they meet certain regulatory standards and oversight.

2. Daily Transaction Limits**: The bill caps withdrawals at **$2,000 per day** for each user. This limit had originally been set to **$1,000** but was adjusted by a House committee last month to allow for up to **$2,000 per day** for the first five transactions within a 30-day period. However, the Senate has now firmly reinstated the $2,000 cap for all transactions.

3. Fraud Prevention Measures**: The bill mandates that operators issue **fraud warning notices** at each crypto ATM to alert users about potential scams. It also requires operators to use **blockchain analytics** to monitor suspicious activities and report any fraudulent behavior to authorities.

4. Quarterly Reporting**: Operators will be required to provide **quarterly reports** detailing the locations of their kiosks, the names of operators, and transaction data to ensure transparency and accountability.

Legislative Process and Next Steps

After passing in the Senate, House Bill 1447 will now return to the House for a vote on the changes made by the Senate. Once the House approves the revised version, the bill will be sent to **Governor Kelly Armstrong** for his signature or veto.

The bill’s primary sponsor, House Representative **Steve Swiontek**, emphasized the importance of these regulations, pointing out that the lack of protective measures for crypto ATMs has allowed criminals to exploit them for fraudulent activities. 

A Growing Focus on Crypto ATM Regulation

North Dakota’s efforts to regulate crypto ATMs come amid growing concerns over fraud and scams involving these machines. In January 2024, the **Federal Trade Commission (FTC)** reported a significant increase in fraud losses from Bitcoin ATMs. According to the FTC, fraud losses from these machines have surged nearly tenfold from 2020 to 2023, totaling more than **$65 million** in the first half of 2024 alone. Notably, older consumers (aged 60 and above) are three times more likely to fall victim to these scams.

Other U.S. states are also taking steps to address these concerns. On **March 13**, **Nebraska Governor Jim Pillen** signed the **Controllable Electronic Record Fraud Prevention Act** into law, which aims to combat fraud involving electronic records, including crypto ATMs. Additionally, U.S. Senator **Dick Durbin** of Illinois proposed similar federal legislation on **February 25** in response to reports of scammers exploiting crypto ATMs to trick consumers into making large deposits.

Global Context: The Rise of Crypto ATMs

According to **Coin ATM Radar** data, the U.S. continues to lead the world in the number of Bitcoin ATMs, with **29,822 machines** representing 78% of the global market. **Canada** follows with 3,486 machines (9.2% of the market), while **Australia** ranks third with **1,613** machines, or 4.3% of the global share.

Despite the growing popularity of crypto ATMs, the rise in fraud has prompted calls for increased regulation, with North Dakota’s legislation serving as a potential model for other states looking to safeguard consumers in the expanding cryptocurrency space.

Conclusion

North Dakota’s new crypto ATM bill reflects the state's commitment to balancing innovation with consumer protection. By limiting daily transactions to $2,000, implementing fraud prevention measures, and ensuring transparency from operators, the bill aims to reduce the risk of scams while enabling residents to engage with cryptocurrency safely. As the bill moves through the legislative process, it may inspire other states to consider similar measures to protect consumers in the rapidly evolving world of digital currency.