North Dakota Senate Caps Crypto ATM Daily Transactions at $2,000

The North Dakota Senate has approved a bill that imposes stricter regulations on crypto ATMs, limiting daily transactions to $2,000 per user. This decision comes after the state's House had initially passed a version of the bill with more lenient transaction limits. The Senate's version of House Bill 1447, introduced on January 15, aims to safeguard residents from scams by establishing a set of guidelines for crypto ATMs and their operators. The bill mandates that crypto ATM operators obtain a license as money transmitters, restricts customer withdrawals to $2,000 per day across their network of ATMs, and requires the issuance of fraud warning notices. Furthermore, operators are obligated to use blockchain analytics to monitor for suspicious activity and report it to authorities, as well as submit quarterly reports on kiosk locations, names, and transaction data.

The Senate's move to cap daily transactions at $2,000 reverses a previous amendment by the House, which had increased the limit to $2,000 for the first five transactions within 30 days. The bill will now return to the House for a vote on the changes before it can be presented to North Dakota Governor Kelly Armstrong for either a veto or signature into law. The primary sponsor of the bill, House Representative Steve Swiontek, emphasized the lack of protection measures for crypto ATMs, which has enabled criminals to exploit them for theft. This legislation is part of a broader effort to combat fraud, with similar measures being implemented in other states and at the federal level. For instance, a similar law was signed into effect in another state on March 13, and federal legislation was proposed on February 25, citing a constituent's experience with a crypto ATM scam. These developments highlight the increasing concern over fraudulent activities involving crypto ATMs and the necessity for stricter regulations to protect consumers.