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- North Dakota lawmakers have introduced House Bill 1447 to combat cryptocurrency fraud
- The bill proposes limiting daily crypto ATM transactions to $1,000 and capping fees at $5 or 3% per transaction
- In 2023, 103 North Dakota residents reported losses totaling $6.5 million due to crypto scams
North Dakota legislators have introduced a bill aiming to enhance consumer protections in light of rising cryptocurrency fraud. The proposed legislation, House Bill 1447, mirrors a California bill that seeks to limit daily transactions at cryptocurrency ATMs to $1,000 and cap associated fees at $5 or 3% per transaction, whichever is higher. This initiative follows reports indicating that 103 residents suffered a combined loss of $6.5 million to crypto scams in 2023.
Legislative Measures to Combat Crypto Fraud
North Dakota lawmakers introduced House Bill 1447 on January 15 in order to address the increasing instances of cryptocurrency-related fraud within the state. The bill, primarily sponsored by Representative Steve Swiontek, proposes several measures to protect consumers engaging in digital currency transactions. Key provisions include restricting daily withdrawals from cryptocurrency kiosks to $1,000 per customer and capping transaction fees at $5 or 3% of the transaction amount, whichever is greater.
The introduction of this bill is a direct response to the significant financial losses reported by North Dakota residents due to cryptocurrency scams. In 2023 alone, 103 individuals reported losses totaling $6.5 million.
Focus on ATMs
The issue of cryptocurrency fraud is not confined to North Dakota. Nationally, the Federal Bureau of Investigation (FBI) reported that Americans lost over $5.6 billion to cryptocurrency-related fraud in 2023, marking a 45% increase from the previous year. Notably, approximately 5,500 cases involved cryptocurrency ATMs, resulting in losses exceeding $189 million. These statistics underscore the vulnerabilities associated with digital currency transactions and the pressing need for consumer protection.
Lisa Kruse, Commissioner of the North Dakota Department of Financial Institutions, highlighted these figures during her address to the House Industry, Business, and Labor Committee, emphasizing the urgent need for regulatory measures. She also noted that the actual losses might be higher, as many victims are reluctant to report such incidents.
In addition to transaction limits and fee caps, House Bill 1447 mandates that cryptocurrency kiosks display clear warnings about potential fraud. These notices would advise users to contact law enforcement if they suspect fraudulent activity and caution that funds lost to scams may not be recoverable. This measure aims to enhance consumer awareness and deter potential scammers.
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