North Dakota Lawmakers Push for Stricter Regulations on Cryptocurrency ATMs

In a recent legislative move, North Dakota lawmakers have proposed new limitations on cryptocurrency ATMs within the state. This initiative aims to combat the rising tide of scams associated with these machines. The proposed regulations come as part of a broader effort to protect consumers from financial fraud in the rapidly evolving digital currency landscape.

The bill proposes a daily withdrawal limit of $1,000 per customer and fees would be capped at either $5 or 3% of the transaction amount, whichever is higher.

Cryptocurrency ATM operators would need to obtain state licensing to operate in North Dakota. Operators would be required to refund ATM fees for transactions related to fraud.

The bill mandates that ATMs print out receipts for every transaction, providing a paper trail for law enforcement investigations. While not explicitly stated in the bill, some operators already report suspicious transactions exceeding $2,000 to federal authorities.

The limit is similar to some other states:

Vermont: $1,000 daily transaction limit.

Minnesota: $2,000 daily transaction limit for new customers.

California: $1,000 daily transaction limit (recently implemented)

The new bill, introduced in the North Dakota legislature, seeks to implement several key measures:

– Mandatory registration of all cryptocurrency ATM operators with state financial regulators

– Enhanced user verification processes at ATM locations

– Prominent display of fraud warnings and consumer protection information on ATM screens

– The bill mandates that ATMs print out receipts for every transaction, providing a paper trail for law enforcement investigations

– Limits on daily transaction amounts to deter large-scale fraudulent activities

Proponents of the bill argue that these measures are necessary to safeguard vulnerable individuals who may fall prey to sophisticated crypto scams. Critics, however, contend that overly restrictive regulations could stifle innovation in the cryptocurrency sector.

As the bill moves through the legislative process, it has sparked a debate about the balance between consumer protection and technological advancement in the financial industry. The outcome of this proposed legislation could set a precedent for other states grappling with similar issues surrounding cryptocurrency ATMs and their potential for misuse.

The North Dakota initiative reflects a growing trend of increased scrutiny on cryptocurrency operations across the United States, as lawmakers and regulators seek to establish a more secure and transparent environment for digital currency transactions.

Leave a comment

My Newsletter

Sign Up For Updates & Newsletters