Nikolas Sargeant
North Dakota’s Senate has passed House Bill 1447, marking a significant step in the regulation of cryptocurrency ATMs. With a 45-to-1 vote on March 18, the bill seeks to curtail rising fraud linked to Bitcoin kiosks, aiming to protect users while maintaining financial accessibility. The bill mandates that operators acquire licenses, post fraud warnings, and adhere to a $2,000 daily transaction cap.
The decision comes after troubling reports of increasing crypto ATM-related scams. According to state officials, 103 complaints were filed in 2023, resulting in over $6.5 million in losses. House Bill 1447 also requires blockchain analytics to track suspicious transactions, enhancing authorities' ability to detect fraud. Operators will also be responsible for submitting regular reports on machine data and locations.
North Dakota’s actions are part of a larger national trend as other states, including Nebraska, introduce similar measures to address crypto ATM fraud. The Federal Trade Commission reported a sharp increase in fraud losses at Bitcoin ATMs, especially among elderly victims. In response, lawmakers have sought to balance consumer protection with the growing role of cryptocurrencies in the U.S. economy.
While North Dakota focuses on regulation, the state is also exploring ways to integrate cryptocurrency into its financial strategy. Proposals to create a Bitcoin reserve, alongside ongoing regulation, demonstrate a broader effort to protect consumers while embracing the potential of digital assets for future economic stability.
