North Dakota Senate Limits Crypto ATM Transactions to $2,000 Daily

The North Dakota Senate has approved a bill that imposes stricter regulations on cryptocurrency 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, which passed with a 45-to-1 vote on March 18, mandates that crypto ATM operators must be licensed as money transmitters in the state. It also requires operators to restrict customer withdrawals across their network of ATMs to $2,000 per day and issue fraud warning notices. Furthermore, operators are obligated to use blockchain analytics to monitor for suspicious activity and report it to the authorities, as well as submit quarterly reports on kiosk locations, names, and transaction data.

The initial version of the bill capped transactions at $1,000 per day, but a House committee later increased this limit to $2,000 for the first five transactions within 30 days. The Senate's decision to reinstate the $2,000 transaction limit means that the bill will need to be sent back to the House for a vote on the changes before it can be signed into law by North Dakota Governor Kelly Armstrong.

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 laws being enacted in other states. For example, Nebraska Governor Jim Pillen signed the Controllable Electronic Record Fraud Prevention Act into law on March 13, and a federal legislation was proposed on February 25, citing a constituent's experience with a crypto ATM scam.

The passage of this bill in North Dakota underscores a growing trend of regulatory scrutiny on crypto ATMs, driven by concerns over fraud and consumer protection. As the use of cryptocurrency continues to expand, lawmakers are increasingly focusing on implementing measures to safeguard users from potential risks. The bill's requirements for licensing, transaction limits, and monitoring are designed to create a more secure environment for crypto ATM users in North Dakota.