The North Dakota Senate has approved a bill that oversees crypto ATMs while reinstating a clause that limits daily transactions to $2,000 per user, a provision that was initially removed by the state’s House.
The Senate approved House Bill 1447 with a 45-to-1 vote on March 18. The legislation was introduced to the state’s legislative assembly on January 15 and seeks to safeguard residents from fraud by establishing a set of new regulations for crypto ATMs and their operators.
The latest iteration of the bill passed by the Senate mandates that crypto ATM and kiosk owners obtain licenses in the state as money transmitters, restricts customer withdrawals across their ATM network to $2,000 daily, and issues notices for fraudulent activities.
Originally, the bill restricted crypto ATM customers to transactions of $1,000 per day, but a House committee eased the restrictions last month, allowing a maximum of $2,000 for the first five transactions conducted within a 30-day period.
Now, the Senate has established a ceiling on transaction limits at $2,000. The bill will have to return to the House for a vote on the amendments before North Dakota Governor Kelly Armstrong can either veto or endorse the bill into law.
The legislation would also necessitate operators to utilize blockchain analytics to detect dubious activities, such as fraud, and report them to the authorities, as well as provide quarterly updates on kiosk placements, names, and transaction information.
The latest iteration of House Bill 1447 mandates local crypto ATM operators to be licensed in the state as money transmitters, among other conditions. Source: North Dakota Legislative Assembly
During a North Dakota House Industry, Business and Labor committee session on January 22, the bill’s chief sponsor, House Representative Steve Swiontek, stated that crypto ATMs currently lack safeguarding measures, which has “permitted criminals to exploit them for theft.”
Nebraska Governor Jim Pillen had signed a similar law on March 13, the Controllable Electronic Record Fraud Prevention Act, intended to help combat fraud.
Meanwhile, US Senator Dick Durbin of Illinois, who previously chaired the Senate Judiciary Committee, proposed similar federal legislation on February 25.
Durbin referenced a case from a constituent who fell victim to a scammer claiming that authorities had issued a warrant for their arrest but could avoid jail time by paying a fine with a $15,000 deposit at a crypto ATM. This case motivated the introduction of the new law.
Related: ‘Victim-blaming’ Americans can deter crypto scams reporting — Regulator
In September of last year, the Federal Trade Commission reported that losses from fraud at Bitcoin (BTC) ATMs had skyrocketed nearly tenfold from 2020 to 2023, surpassing $65 million in the first half of 2024, with consumers aged 60 and older being three times more likely to fall prey.
Coin ATM Radar data indicates that the US remains the leader in Bitcoin ATMs, with 29,822 machines constituting 78% of the global market.
The United States holds the leading position in the quantity of Bitcoin and crypto ATMs. Source: Coin ATM Radar
Canada ranks second, with 9.2% of the market and 3,486 crypto ATMs, while Australia comes in third with 1,613 crypto ATMs, representing 4.3% of the market.