North Dakota’s crypto ATM bill introduces a $2,000 daily limit, marking a significant step in regulating digital asset transactions. The legislation aims to balance accessibility with consumer protection, reflecting the state’s growing interest in cryptocurrency adoption.
The measure first suggested a $1,000 daily cap, but the House later changed it to let the first five transactions inside a 30-day period up to $2,000 daily. Without the prior clause, the Senate chose to impose a rigid $2,000 daily limit. This step is a component of more general initiatives to reduce money laundering and fraud connected to unbridled online transactions.
Under the new rules, every crypto ATM operator running in the state has to have a money transmitter license. ATM systems also have to follow daily withdrawal caps, show fraud warnings, and apply blockchain analytics to track and document dubious behavior. Operators also expect quarterly reports that include kiosk locations, operator identities, and transaction data.
The main proponent of the bill, Representative Steve Swiontek, underlined the need for these rules by stressing issues around frauds using crypto-alternative technology. Inspired by similar laws passed in Nebraska and suggested at the federal level by Senator Dick Durbin of Illinois, who presented a measure following a victim being duped into depositing $15,000 into a crypto ATM under false pretenses.
Reports state that fraud connected to Bitcoin ATMs has increased recently; losses in the first half of 2024 alone amount to $65 million. Older consumers, particularly those over sixty, have suffered disproportionately. With around 30,000 machines across the country, making up 78% of all the crypto ATMs worldwide, the United States continues to lead globally despite these reservations.
Before being forwarded to Governor Kelly Armstrong for approval or veto, the bill will now go back to the North Dakota House for a last review. If the new rules become effective, they could serve as a model for other states considering more stringent crypto ATM policies.
