North Dakota Senate Approves Crypto ATM Bill With $2,000 Daily Limit

YEREVAN (CoinChapter.com) — The North Dakota Senate passed House Bill 1447, reinstating a $2,000 daily limit on crypto ATM transactions. The bill was approved in a 45-to-1 vote on March 18 and now returns to the House for approval before reaching Governor Kelly Armstrong.

Originally, the bill proposed a $1,000 daily limit, but a House committee increased the cap last month. The revised version allowed $2,000 per day but restricted users to five such transactions within 30 days. The Senate version removed the 30-day restriction, enforcing a flat $2,000 daily limit.

Operators Must Obtain Licenses and Report Transactions

The bill introduces new regulations for crypto ATM operators. They must obtain a money transmitter license to operate in North Dakota and comply with reporting requirements. These include submitting quarterly reports with details on:

Crypto ATM locations

Operator names

Transaction data

Operators must also use blockchain analytics to monitor for fraud and suspicious activity, reporting any concerns to authorities. Additionally, they must issue fraud warnings on ATMs.

North Dakota House Bill 1447: Crypto ATM Regulations, Blockchain Analytics, and Virtual Currency Rules. Source: North Dakota Legislative Assembly Lawmakers Cite Fraud Concerns in Crypto ATM Regulations

Representative Steve Swiontek, who introduced the bill, raised concerns about crypto ATM fraud during a House committee hearing on January 22. He stated that criminals use crypto ATMs for fraud and theft, exploiting users who lack protections.

North Dakota Legislative Assembly Hearing on Crypto ATM Regulations and Virtual Currency Compliance. Source: North Dakota State Capitol

Other states have passed similar laws. On March 13, Nebraska Governor Jim Pillen signed the Controllable Electronic Record Fraud Prevention Act to address crypto ATM scams. At the federal level, Senator Dick Durbin introduced a bill on February 25 after a $15,000 crypto ATM scam in which a victim was tricked into paying to avoid an alleged arrest warrant.

Crypto ATM Fraud Reports and Global Market Share

Fraud involving crypto ATMs has increased. A September 2023 report from the Federal Trade Commission (FTC) found that Bitcoin ATM fraud losses grew nearly tenfold between 2020 and 2023. Losses exceeded $65 million in the first half of 2024, with individuals aged 60 and older three times more likely to fall victim.

Despite concerns, the United States remains the leader in crypto ATM installations, hosting 29,822 machines, representing 78% of the global market, according to Coin ATM Radar. Canada follows with 3,486 crypto ATMs (9.2% of the market), while Australia ranks third with 1,613 ATMs (4.3% of the market).

Distribution of Crypto ATMs Across the United States: Market Concentration and Regional Availability. Source: Coin ATM Radar

Above all, the North Dakota crypto ATM bill is part of wider efforts by state and federal lawmakers to regulate crypto ATM transactions and prevent fraud as crypto adoption continues.