North Dakota Debates Crypto ATM Regulations Amid Rising Scam Concerns

North Dakota legislators have begun debating House Bill 1447, a proposal aimed at regulating crypto ATM machines to curb scams and enhance consumer safety. Introduced on January 15, the bill would implement several changes, including limiting daily customer withdrawals to $1,000, capping fees at $5 per transaction or 3% of the total amount (whichever is higher), and mandating fraud warning notices on machines. Lisa Kruse, the commissioner of the state’s Department of Financial Institutions, revealed during a January 22 hearing that residents reported 103 crypto-related scams to the FBI in 2023, leading to a collective loss of $6.5 million. Nationwide, Americans lost $5.6 billion to crypto fraud in 2023, with over $189 million tied to scams involving cryptocurrency ATMs , according to the FBI. The bill’s primary sponsor, House Representative Steve Swiontek, emphasized the urgency of introducing safeguards to prevent misuse of crypto ATM machiens. “Unlike traditional ATMs, these machines lack the necessary protection measures, making them an easy target for criminals,” Swiontek explained. Opposition from Crypto ATM Operators While the bill has received support from consumer advocacy groups, it has faced pushback from crypto ATM operators. CoinFlip’s assistant general counsel, Kevin Lolli, acknowledged the importance of protecting consumers but argued against the proposed fee and transaction limits. Lolli highlighted that fees between 8% and 20% are standard for crypto ATMs due to operational costs, including hardware maintenance, armored car services, and rent paid to local businesses hosting the machines. He also noted that some machines already report suspicious transactions exceeding $2,000 and notify authorities for amounts over $10,000. Advocacy organizations like the American Association of Retired Persons (AARP) have voiced strong support for the bill, citing its potential to protect elderly residents from falling victim to scams. “This legislation is a crucial step toward saving our seniors from losing their hard-earned savings,” said AARP state director Josh Askvig. The Growing Need for Regulation Crypto ATM market is becoming increasingly prevalent, with over 37,000 machines operating across 65 countries, nearly 30,000 of which are located in the United States, according to Coin ATM Radar. The proposed regulations aim to strike a balance between consumer protection and industry growth. However, with the crypto space still largely unregulated, the debate highlights the challenges of safeguarding users while supporting technological innovation. The post North Dakota Debates Crypto ATM Regulations Amid Rising Scam Concerns appeared first on TheCoinrise.com .