North Dakota lawmakers are considering legislation aimed at curbing cryptocurrency ATM-related fraud. House Bill 1447, introduced by Representative Steve Swiontek, seeks to limit daily withdrawals from crypto ATMs to $1,000 per customer and cap transaction fees at $5 or 3% of the total amount, whichever is higher. The bill also mandates that ATMs display prominent fraud warning notifications.

This initiative stems from concerns regarding the vulnerability of crypto ATMs to scams. The FBI reported that Americans lost $5.6 billion to crypto fraud in 2023, with 5,600 cases involving crypto ATMs resulting in losses exceeding $189 million.
Representative Swiontek emphasized the lack of consumer protections associated with crypto ATMs compared to traditional ATMs, making them susceptible to exploitation by criminals.
While the bill aims to safeguard consumers, it has drawn mixed reactions. Some argue that it could stifle innovation and hinder the growth of the cryptocurrency industry. Others support the measure, citing the need for stronger regulations to protect consumers from potential losses.
The proposed legislation is currently under review by the North Dakota House Industry, Business, and Labor Committee. If passed, it would establish stricter regulations on crypto ATMs in the state, marking a significant step towards mitigating the risks associated with these machines.