North Dakota lawmakers have recently made a significant move towards regulating crypto ATMs in the state by approving a bill that imposes a $2,000 daily transaction limit per user. This decision comes as a response to the increasing cases of fraud associated with crypto ATMs and aims to enhance oversight and protect residents from potential scams.
The bill, known as House Bill 1447, was passed by the state Senate on March 18, marking a crucial step towards establishing a stronger regulatory framework for crypto ATM operators in North Dakota. With approximately 45 Bitcoin ATMs currently operating in the state, according to Coin ATM Radar, the need for increased scrutiny and security measures has become apparent.
If the bill is ultimately enacted, it will require crypto ATM operators to obtain a money transmitter license before operating in North Dakota. Additionally, operators will be mandated to provide clear and easily readable disclosures of terms and conditions in the customer’s preferred language. The bill also introduces measures such as using blockchain analytics tools to detect fraudulent transactions, displaying fraud warnings before processing transactions, and implementing a $2,000 daily withdrawal cap.
Furthermore, operators will be required to establish and maintain a written anti-fraud policy to proactively detect and prevent fraudulent activity. The legislation also stipulates that ATM operators must provide live assistance on weekdays from 8 A.M. to 10 P.M. Central Time to improve customer support, with a toll-free customer service number prominently displayed on the machine or its interface.
By implementing these measures, North Dakota aims to strike a balance between maintaining user accessibility to crypto ATMs while safeguarding against potential fraud and money laundering schemes. The bill will now likely return to the House for further consideration before potentially being signed into law by the governor.
Overall, the approval of House Bill 1447 represents a significant step towards enhancing oversight and security in the crypto ATM industry in North Dakota, ultimately protecting residents from fraudulent activities and ensuring a safer and more regulated environment for crypto transactions.