North Dakota lawmakers are considering a newly introduced bill, House Bill 1447. aimed at reducing Stop cryptocurrency ATM-related fraud by imposing transaction limits and introducing stronger consumer protections.
The bill, introduced on January 15, 2025, would cap daily withdrawals at $1,000, cap fees at $5 or 3% of the transaction amount (whichever is higher), and limit all virtual currency ATMs to $1,000. proposes to require fraud warning notices.
North Dakota Department of Financial Institutions Secretary Lisa Kruse testified before the House Industry, Business, and Labor Committee on January 22, 2025, highlighting the impact of cryptocurrency fraud in the state.
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North Dakota residents will lose millions of dollars to crypto fraud in 2023
Kruse reported that in 2023, North Dakota residents filed 103 complaints of cryptocurrency fraud with the FBI, resulting in a combined loss of $6.5 million.
The FBI recorded $5.6 billion in crypto-related fraud nationwide last year, including more than 5,500 incidents involving crypto ATMs, resulting in losses of $189 million. are.
Rep. Steve Swiontek, the bill's lead sponsor and former CEO of Gate City Bank, said crypto ATMs lack consumer protections compared to traditional ATMs. he emphasized.
“Unfortunately, this has allowed criminals to exploit it for theft,” Świętek said, stressing the need for stronger protections.
The bill also aims to increase consumer awareness by requiring ATMs to display warnings about potential fraud. The machine advises users to contact law enforcement if they suspect fraud and warns them that funds lost to fraud may not be recovered.
Josh Askvig, North Dakota director of the American Association of Retired Persons, praised the bill for its potential to protect elderly residents who are often targeted by scammers.
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However, this proposal was met with resistance from crypto industry players. Kevin Lori, assistant general counsel for cryptocurrency ATM operator Coinflip, expressed support for the consumer protection elements, but opposed the fees and transaction caps.
Lolli said that crypto ATM fees are typicallyangry from The 8% to 20% reflects operating costs such as hardware maintenance, armored vehicle servicing, and rent payments to host companies.
the currentof the 37,155 cryptocurrency ATMs in operation around the world, nearly 30,000 are located in the United States.according to Coin ATM Radar. Many machines have already reported suspicious transactions of more than $2,000 and large transactions of more than $10,000 to federal authorities.
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Australia's new task force targets crypto ATMs
Last month, Australia's leading financial intelligence arm, the Australian Transaction Reports and Analysis Center (AUSTRAC),), announced plans for a new task force aimed at the cracks We crack down on crypto ATM providers that may be violating anti-money laundering (AML) regulations.
At the time, AUSTRAC CEO Brendan Thomas said the accessibility and rapid transaction capabilities of cryptocurrencies and crypto ATMs presented an attractive opportunity for criminal elements looking to launder money.
The newly established task force will primarily ensure that operators of cryptocurrency ATMs adhere to strict standards that reduce the risk of illicit funds circulating through these machines.
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The post North Dakota State Lawmaker Proposes Bill to Cap Cryptocurrency ATM Transactions to Prevent Fraud appeared first on 99Bitcoins.
