North Dakota Lawmakers Approve Bill to Regulate Crypto ATMs
North Dakota lawmakers have recently taken a significant step towards regulating cryptocurrency ATMs by passing a bill that imposes a $2,000 daily transaction limit per user. This move is aimed at curbing fraud and enhancing oversight in the state.
Protecting Residents from Fraud
The bill, known as HB 1447, is designed to protect residents from the increasing number of fraud cases associated with crypto ATMs. Currently, North Dakota is home to approximately 45 Bitcoin ATMs out of a total of around 29,730 machines across the United States, according to Coin ATM Radar.
Key Details of the Bill
HB 1447 introduces stricter guidelines for crypto ATM operators in North Dakota. Some key points of the bill include:
- Operators must obtain a money transmitter license before operating their machines.
- Clear and easily readable disclosures of terms and conditions must be provided to customers in their preferred language.
- Operators are required to use blockchain analytics tools to detect fraudulent transactions, track suspicious wallet activity, and flag potential money laundering schemes.
- Crypto ATMs must display fraud warnings before processing transactions to help users identify potential scams.
- Operators must establish and maintain a written anti-fraud policy to detect and prevent fraudulent activity.
The bill also enforces a $2,000 daily withdrawal cap to prevent excessive transactions and fraud. Additionally, ATM operators must offer live assistance on weekdays from 8 A.M. to 10 P.M. Central Time and provide a toll-free customer service number for support.
Overall, the bill aims to establish a stronger regulatory framework for crypto ATMs in North Dakota while ensuring user accessibility and protection against fraud.
