North Dakota Bill Would Limit Crypto ATM Transactions to Combat Fraud
Date: 2025-01-23 Author: Gabriel Deangelo Categories: IN WORLD
North Dakota officials are debating a bill that would limit the use of crypto ATMs. The bill, introduced on January 15 as House Bill 1447, would cap daily withdrawals at $1,000, cap fees at $5 per transaction or 3% of the transaction amount, and require ATMs to display fraud warnings on their screens.
North Dakota Department of Financial Institutions Commissioner Lisa Cruz told the Industry, Business, and Labor Committee on Jan. 22 that the Federal Bureau of Investigation has received 103 complaints from state residents in 2023, reporting a total of $6.5 million in losses to crypto scams.
According to FBI data released in September, Americans have lost $5.6 billion in crypto scams in 2023. Of those, 5,500 involved crypto ATMs, resulting in losses of over $189 million.
The bill's lead sponsor, Representative Steve Sviontek, noted that crypto ATMs have fewer security measures than traditional ATMs, making it easier for scammers to access victims. He said this creates an environment where criminals can defraud users.
Josh Askvig, a representative of the Association of Seniors of America, emphasized that the passage of this bill would be an important step in protecting citizens, especially seniors, from losing their savings.
According to the proposal, crypto ATMs should not only warn about possible fraud, but also advise users to contact law enforcement if they suspect fraud. It will also indicate that funds lost due to error or fraud may not be refundable.
However, not all industry representatives support the restrictions. Kevin Lolley, assistant general counsel at CoinFlip, said that the company welcomes consumer protection measures, but opposes limits on fees and transaction amounts. He noted that crypto ATMs typically charge fees of 8% to 20% to cover the costs of equipment, maintenance, collection, and rent.
There are currently 37,155 crypto ATMs operating in 65 countries worldwide, with nearly 30,000 of them located in the United States, according to Coin ATM Radar.
