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North Dakota Proposes Crypto ATM Fraud Cap
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As part of a move to reduce crypto scams, lawmakers in North Dakota are proposing House Bill 1447, a bill seeking to cap crypto ATM transactions.
The new bill would limit crypto ATM transactions to $1,000 daily and cap fees at $5 or 3% of the transaction. Lisa Kruse, commissioner of North Dakota’s Department of Financial Institutions, said the bill would help address the growing concern of crypto scams.
Online data shows that crypto ATM scams should be taken seriously. FBI data shows that Americans reported over 5,000 cases of ATM crimes in 2023 alone, wiping out over $100 million.
NORTH DAKOTA WANTS TO REWRITE THE CRYPTO ATM GAME
House Bill 1447 just dropped, aiming to put a $1K daily cap on crypto ATM withdrawals and tighten fees to $5 or 3% max.
Why? 103 locals got rugged in 2023, losing $6.5M to scams.
Lawmakers want ATMs to flash fraud warnings and… pic.twitter.com/0FPbA9SzLt
— Mario Nawfal’s Roundtable (@RoundtableSpace) January 23, 2025
Championing the bill, House Representative Steve Swiontek argued that crypto ATMs lack the protective measures of traditional machines. This would allow criminals to exploit loopholes and steal users’ funds.
Other lawmakers emphasized that the bill would protect elderly residents from being financially exploited. House Bill 1447 requires crypto ATMs to put up a display urging users to contact authorities in the case of fraud.
How important is this bill?
Most crypto ATM operators believe the bill is a welcomed idea. However, some noted that it could significantly impact how these machines operate, particularly regarding fees.
With charges currently ranging from 8% to 20%, capping fees might make it harder for operators to cover essential costs like maintenance, security, and rent paid to host businesses.
Bitcoin ATMs: The New Frontier for Scammers?
Remember those classic scams like fake IRS calls, romance schemes, and bogus FBI threats? Scammers have upped their game with a new twist: they’re now using Bitcoin ATMs instead of gift cards to steal your money.
Here’s how it… pic.twitter.com/Esdf2JY8kz
—
Anh | Corgi Studio (@corgi408) January 22, 2025
On the flip side, lower fees could benefit users. However, operators may struggle to sustain their services, which could lead to fewer machines and limited public access to crypto.
Regardless, the move could encourage more transparency and competition in the industry. In addition, it could offer stronger protection for users, helping to reduce risks associated with high fees and potential fraud.
Finally, the US appears to be moving toward a more crypto-friendly stance under Donald Trump’s administration. So, regulatory clarity will help encourage mainstream adoption.
Disclaimer
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January 24, 2025 at 05:48AM
January 24, 2025 at 05:50AM
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