The Senate wants to cap the daily amount at $2,000
A bill aimed at regulating cryptocurrency ATMs in North Dakota is moving forward, with lawmakers reinstating a provision that caps daily withdrawals. The state Senate passed House Bill 1447 by a 45-1 vote, reviving a transaction limit of $2,000 per user that had previously been removed by the House. The legislation is intended to increase consumer protections and reduce fraud involving crypto kiosks.
The bill introduces several new regulations for crypto ATM operators, including a licensing requirement as money transmitters. Additionally, all machines would need to display fraud warnings and use blockchain analytics to monitor suspicious activity. Operators would also be responsible for submitting quarterly reports on kiosk locations, transactions, and security measures.
Initially, the legislation set a stricter cap of $1,000 per day for transactions. However, a House committee adjusted the rule last month, allowing users to withdraw up to $2,000 daily for their first five transactions within 30 days. The Senate’s latest decision establishes a firm $2,000 limit, eliminating the prior flexibility. Before the bill can become law, it must return to the House for approval of the modifications before reaching Governor Kelly Armstrong’s desk.
Supporters of the measure argue that crypto ATMs have become a target for fraud, often used in scams where victims are tricked into sending funds under false pretenses. Representative Steve Swiontek, the bill’s primary sponsor, emphasized that the lack of oversight in these machines has made them an easy tool for criminals.
North Dakota’s initiative mirrors actions taken elsewhere. Nebraska recently passed a similar law to curb fraud, and federal lawmakers have also proposed regulations to address the growing issue. With scam-related losses tied to Bitcoin ATMs increasing sharply in recent years, state and national efforts to impose tighter controls continue to gain traction.
