$2000 Limit Per Day: See How North Dakota Crypto ATM Regulations Fight Scammers

North Dakota is preparing to implement a regulatory framework for cryptocurrency ATMs soon. The state Senate strongly backed House Bill 1447 to establish crypto ATM regulations. The legislation is designed to tackle increasing fraud at crypto ATMs by enforcing stricter operational rules on kiosk operators.

The Senate approved this bill with a 45-to-1 vote. The new law makes acquiring money transmitter licenses and blockchain analytics for fraud detection mandatory. Operators must also appoint compliance officers, provide quarterly transaction reports, and adhere to a daily $2,000 transaction limit. These measures respond to rising worries about crypto ATM scams causing financial losses.

Mandatory Licensing and Fraud Detection Measures

North Dakota is strengthening protection and clarity for cryptocurrency users within the state. It will now mandate that every cryptocurrency ATM operator in North Dakota must acquire a formal money transmitter license. This new regulation ensures these companies properly adhere to necessary financial regulations. These crucial standards mirror those already in place for typical financial service providers.

Operators must also integrate blockchain analytics software for transaction monitoring to quickly detect suspicious activities. This essential software flags potential fraud, directly addressing the rising cases involving crypto ATM scams. Authorities can now detect suspicious activities swiftly thanks to this technology, acting before scammers victimize customers.

Transaction Limits and Compliance Reporting

One of the most debated aspects of the proposed crypto ATM regulations involves a $2,000 daily limit on user transactions. The House of Representatives had first suggested a more flexible limit, allowing five transactions per month before restrictions applied. However, the Senate decided on a consistent daily cap, as they argued it would ensure greater protection for consumers.

Furthermore, the crypto legislation demands that all operators submit quarterly reports to ensure compliance. These reports must include specific details about kiosk locations, total amounts of transactions, and any suspicious actions discovered. This requirement intends to give regulators increased insight into crypto ATMs and improve reactions to new fraud trends.

Increasing Nationwide Regulatory Investigations

North Dakota regulates crypto ATMs as part of a growing national effort to increase oversight. Nebraska passed a new law that requires strict licensing and compliance rules for crypto ATM operators. Additionally, Senator Dick Durbin supports federal laws to stop fraud and protect victims from deceitful deposits.

Map 1_ Crypto ATMs in the United States – Provided by Coin ATM Radar, March 19, 2025.

Regulators increasingly worry about risks when crypto ATMs operate without proper oversight or monitoring. The FTC reported that fraud losses from Bitcoin ATMs have surged nearly ten times since 2020. Given that the United States hosts most global crypto ATMs, experts demand stronger regulatory measures immediately. Effective regulation could secure crypto transactions and boost consumers’ trust in the system.

Balancing Innovation and Security

House Bill 1447 is an important step for consumer protection against crypto fraud. Lawmakers intend to decrease crypto ATM scam risks by implementing strict compliance measures and transaction limits. These measures target vulnerabilities that have made crypto ATMs attractive tools for numerous scammers.

The crypto legislation needs final approval from the House and governor before becoming law. North Dakota’s approach to balancing innovation with consumer safety could model future crypto ATM regulations for other states. This legislative effort may establish a valuable precedent for national regulations.