Key Takeaways:
- North Dakota’s Senate approved House Bill 1447, requiring crypto ATM operators to obtain money transmitter licenses and implement fraud detection measures.
- New rules mandate on-screen fraud warnings, quarterly reports, and a compliance officer, with a $2,000 daily transaction cap per user.
- The bill follows rising crypto ATM-related fraud, as global regulators, including the UK’s FCA, intensify enforcement against illicit operators.
North Dakota’s Senate has approved House Bill 1447, introducing a regulatory framework for cryptocurrency ATMs to enhance fraud prevention and compliance.
The bill mandates that virtual currency kiosk operators obtain money transmitter licenses, implement blockchain analytics to detect fraud, and provide on-screen warnings about scams.
⚡JUST IN: North Dakota's Senate passed HB 1447, imposing a $2,000 daily limit and strict regulations on crypto ATMs to combat fraud. pic.twitter.com/88yURGACi6
— ChainDesk (@ChainDesk_) March 19, 2025
Operators must also submit quarterly reports and appoint a compliance officer.
Daily transactions will be capped at $2,000 per user to curb fraudulent activities.
The legislation responds to increasing crypto ATM-related scams.
The Federal Trade Commission (FTC) reports a significant rise in Bitcoin ATM fraud losses since 2020, while TRM Labs found at least $160 million in illicit transactions processed via these machines since 2019.
Globally, regulators have intensified enforcement.
In the UK, the Financial Conduct Authority (FCA) recently prosecuted an operator for illegally processing $3.4 million through crypto ATMs, resulting in a four-year prison sentence.
Despite Bitcoin’s price surge in 2024, U.S. crypto ATM growth has stagnated since 2022 due to increasing fraud concerns and regulatory scrutiny.
With the Senate’s approval, House Bill 1447 moves closer to becoming law, setting the stage for stricter oversight and compliance measures for North Dakota’s crypto ATM industry.
About The Author
Adam Morris, the co-founder of Crypto Head and a respected crypto expert, offers insightful commentary and analysis on cryptocurrency, NFTs, and the evolving digital landscape.
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