North Dakota Passes Bill Regulating Crypto ATMs With $2,000 Daily Transaction Cap
The North Dakota Senate has passed a bill regulating cryptocurrency ATMs with a 45-to-1 vote on March 18. House Bill 1447 includes a $2,000 daily transaction limit per user, a provision that had been modified during earlier legislative discussions.
The bill aims to protect residents from scams by establishing new guidelines for crypto ATM operators. It requires operators to be licensed as money transmitters in the state and mandates the display of fraud warning notices at all machines.
Initially, the bill proposed a $1,000 daily transaction limit, but the House committee loosened this restriction last month. The House version allowed $2,000 daily for the first five transactions within a 30-day period, but the Senate has now set a flat $2,000 cap.
Before becoming law, the modified bill must return to the House for approval of the Senate's changes. If approved, it will then go to North Dakota Governor Kelly Armstrong, who can either sign it into law or veto it.
The legislation would also require crypto ATM operators to:
- Use blockchain analytics to monitor for suspicious activity
- Report potential fraud to authorities
- Provide quarterly reports on kiosk locations and transaction data
Representative Steve Swiontek, the bill's primary sponsor, stated during a January hearing that crypto ATMs currently lack protection measures, which has "allowed criminals to exploit them for theft."
North Dakota joins other states addressing crypto ATM fraud. Nebraska Governor Jim Pillen signed similar legislation on March 13, while U.S. Senator Dick Durbin of Illinois proposed federal regulations on February 25 after hearing from a constituent who lost $15,000 to scammers.
The Federal Trade Commission reported that fraud losses at Bitcoin ATMs increased nearly tenfold from 2020 to 2023, with losses topping $65 million in the first half of 2024. Consumers aged 60 and older are three times more likely to fall victim to such scams.
The North Dakota legislation follows broader national trends in cryptocurrency policy. Representative Byron Donalds recently introduced a bill to protect President Trump's strategic Bitcoin reserve from future administrations. The legislation would require 60 Senate votes and House majority to codify the government's 200,000 BTC holdings as a permanent policy, with growing bipartisan support making passage potentially feasible.
