North Dakota Introduces Bill to Limit Crypto ATM Transactions to Combat Fraud

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Lawmakers in North Dakota state have introduced a bill to restrict crypto ATM transactions and protect residents from fraud.

The House Bill 1447 was submitted on January 15 to the state legislature, after 103 state residents reported $6.5 million in losses to crypto scams in 2023.

The proposed legislation would restrict daily ATM withdrawals to $1,000 per day, the bill read. Additionally, it would cap transaction fees at $5 or 3% of the total amount, whichever is higher. Per an FBI report in September 2024, Americans lost $5.6 billion to cryptocurrency fraud in 2023 alone. Besides, 5,500 fraud cases involved cryptocurrency ATMs, resulting in losses of over $189 million.

The bill is primarily sponsored by Representative Steve Swiontek and aims to create key consumer protections to combat such frauds.

The bill noted that along with ATMs displaying warning about fraud, the machines would also advise users to contact law enforcement in case of scam detection.

Meanwhile, Josh Askvig, North Dakota director of the American Association of Retired Persons, said that the legislation would help elderly residents from falling prey to crypto scams.

Bill to Protect Elderly Residents From Crypto Fraud

Lolli told the state lawmakers that the reduced fee would affect ATM operators in covering various expenses. These include costs involved with the hardware and maintenance and rental to local businesses hosting the machine. ATM operators typically charge a fee between 8% and 20%, he added.

Kevin Lolli from crypto ATM operator CoinFlip said at the hearing that the company is opposing the bill’s fee and transaction limits clause. However, he expressed support to the proposed consumer protection.