North Dakota legislators are discussing a bill to reduce fraud connected to cryptocurrency automated teller machines (ATMs).
Reports show that in 2023, residents in the state lost $6.5 million to scams, while over 5,500 cases nationwide involved crypto ATMs, which led to losses of $189 million.
House Bill 1447, introduced on January 15, proposes measures to limit fraud and improve consumer protections.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
How to Avoid Major Crypto Investment Risks? (Beginner-Friendly)
The bill would set a $1,000 daily withdrawal limit for crypto ATMs, cap transaction fees at either $5 or 3% of the amount, and require warnings on the machines. These warnings would advise users to contact law enforcement if they suspect fraud and remind them that lost funds may not be recoverable.
Representative Steve Swiontek, who sponsored the bill, explained that crypto ATMs lack the safeguards found in traditional ATMs.
Advocates, like Josh Askvig from the American Association of Retired Persons, support the bill to protect older residents from falling victim to scams. The proposed changes aim to prevent individuals from losing life savings to fraudulent schemes.
However, Kevin Lolli, assistant general counsel for crypto ATM operator CoinFlip, supported the consumer protection aspects but opposed the fee and withdrawal limits. He explained that maintaining ATMs involves costs, including maintenance, armored transport, and payments to hosting businesses, which lead to fees typically ranging from 8% to 20%.
Meanwhile, South Korean regulators recently delayed a decision on corporate crypto accounts. Why? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
