North Dakota lawmakers are discussing House Bill 1447, a newly introduced measure Aim to reduce Crypto ATM fraud by imposing transaction limits and implementing stricter consumer protections.
The bill, introduced on January 15, 2025, proposes to cap daily withdrawals at $1,000, limit fees to $5 or 3% of the transaction amount (whichever is higher), and require fraud warning notices on all currency ATMs. encrypted.
Lisa Cross, Commissioner of the North Dakota Department of Financial Institutions, testified on January 22, 2025 before the House Industry, Business and Labor Committee, highlighting the impact of cryptocurrency scams in the state.
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North Dakota residents lost millions to cryptocurrency scams in 2023
Cross reported that in 2023, North Dakota residents filed 103 complaints about cryptocurrency fraud with the FBI, resulting in combined losses of $6.5 million.
Nationally, the FBI recorded $5.6 billion in cryptocurrency-related fraud last year, including more than 5,500 cases involving cryptocurrency ATMs, which accounted for $189 million in losses.
House Representative Steve Suiontek, the bill’s lead sponsor and former CEO of Gate City Bank, stressed the lack of consumer guarantees on cryptocurrency ATMs compared to traditional ATMs.
“Unfortunately, this allowed criminals to exploit it for theft,” Suiontek said, stressing the need for more protection.
The bill also seeks to enhance consumer awareness by requiring ATMs to display warnings about potential fraud. The devices advise users to contact law enforcement if they suspect fraudulent activity and remind them that funds lost due to fraud may not be recoverable.
Josh Askvig, director of AARP North Dakota, praised the bill for its ability to protect elderly residents, a demographic often targeted by scammers.
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North Dakota is introducing a bill to invest state money in it $ Bitcoin
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However, the proposal has faced resistance from players in the cryptocurrency industry. Kevin Lolli, assistant general counsel for cryptocurrency ATM operator CoinFlip, expressed support for consumer protections but opposed fees and transaction caps.
Lawley explained that ATM fees for cryptocurrencies, typically pChange from 8% to 20%, reflects operational costs such as hardware maintenance, armored vehicle services, and rental payments to host companies.
currentlyThe United States is home to approximately 30,000 of the 37,155 cryptocurrency ATMs operating worldwide.According to Coin ATM Radar. Many devices already report suspicious transactions exceeding $2,000 or large transactions exceeding $10,000 to federal authorities.
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New Australian task force targets cryptocurrency ATMs
Last month, Australia’s main financial intelligence unit, the Australian Transaction Reporting and Analysis Center (AUSTRAC).), He unveiled plans to form a new task force Aimed at breaking Shut down cryptocurrency ATM providers that may be violating anti-money laundering (AML) regulations.
At the time, Brendan Thomas, CEO of AUSTRAC, said the accessibility and fast transaction capabilities of cryptocurrencies and crypto ATMs provide attractive opportunities for criminal elements seeking to launder money.
The newly formed task force will primarily ensure that crypto ATM operators adhere to strict standards that mitigate the risks of illicit money being traded via these machines.
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