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

Last updated:

Author

Sujha Sundararajan

Author

Sujha Sundararajan

About Author

Sujha has been recognised as 🟣 Women In Crypto 2024 🟣 by BeInCrypto for her leadership in crypto journalism.

Last updated:

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas – from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

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

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.

Lisa Kruse, commissioner of the North Dakota Department of Financial Institutions, reminded about the increasing crypto-related fraud complaints from residents. On Wednesday, Kruse addressed the House Industry, Business, and Labor Committee, stressing the $6.5 million in losses in 2023.

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.

During the Wednesday Committee hearing, Swiontek noted that currently crypto ATMs lack the protection measures that traditional money ATMs have.

“Unfortunately, this has allowed criminals to exploit them for theft,” Swiontek added.

Bill to Protect Elderly Residents From Crypto Fraud

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.

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. The note would also include a cautionary message that funds lost in fraud may not be recoverable.

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.

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.