The post North Dakota mulls bill to safeguard consumers from crypto ATM scams appeared on BitcoinEthereumNews.com.
North Dakota regulators are debating a bill that introduces consumer protections to combat scams involving cryptocurrency ATMs. During a Jan. 22 hearing, lawmakers in North Dakota discussed House Bill 1447, introduced to the state’s legislative assembly earlier this month, which seeks to cap daily withdrawals, regulate transaction fees, and mandate fraud warning notices on crypto ATMs to safeguard residents from financial scams. For those unfamiliar, crypto ATMs are kiosks at physical locations that allow users to convert cash into cryptocurrencies and vice versa. However, the limited regulation surrounding these machines and the anonymity provided by cryptocurrency transactions have made them increasingly susceptible to exploitation by scammers, who use them as a channel for funneling illicit loot. According to Lisa Kruse, North Dakota’s Department of Financial Institutions Commissioner, locals filed 103 crypto scam complaints with the FBI in 2023 alone, resulting in reported losses of $6.5 million. Reported losses are much higher when considering the latest Federal Trade Commission data, which shows that scam incidents in the United States have surged over tenfold between 2020 and 2023. At the hearing, House Representative Steve Swiontek, the primary sponsor of the bill, raised concerns over the current lack of regulations and protection measures that make it easier for criminals to exploit crypto ATMs. What is House Bill 1447? The bill seeks to put in place various protection measures, such as capping daily withdrawals at $1,000 and limiting transaction fees to $5 or 3% of the transaction amount, whichever is higher. Additionally, it mandates that all crypto ATMs display fraud warning notices to alert users of common scam tactics and advise them to contact law enforcement if they suspect fraudulent activity. Users will also be notified of the irreversible nature of crypto transactions so they’re aware that funds, once sent, may not be recoverable.…