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The Coin Rise 2025-01-23 22:55:37

North Dakota Moves To Stump Crypto ATM Thefts

North Dakota Moves To Stump Crypto ATM Thefts

North Dakota lawmakers are discussing a new bill to safeguard residents from crypto ATM related scam in the state. The bill would introduce several key requirements to protect consumers. The new bill dubbed “ House Bill 1447 ” proposes stricter regulations for crypto kiosks, also known as digital currency ATMs. These measures aim to prevent scammers from exploiting crypto ATMs, which have become increasingly popular. Crypto ATM Scam: Bill to Cap Transactions Limit Notably, the bill proposes to cap daily withdrawal limits at $1,000 daily to prevent excessive withdrawals. Additionally, transaction fees are limited to $5 per transaction or 3% of the transaction amount, whichever is higher. Under the proposed bill, crypto ATMs must display clear warnings and disclaimers. The ATMs are expected to display scam warnings to alert users of potential risks. Also, instructing users to report suspicious activity to law enforcement and noting that funds lost due to errors or fraud may be irretrievable. Meanwhile, House Bill 1447, sponsored by House Representative Steve Swiontek, was first introduced on January 15. According to Steve, crypto ATMs are more vulnerable to scams than traditional ATMs. They lack the same security measures that protect users from fraudulent activities, making users easy targets. Crypto ATM operators Express displeasure on New Bill However, operators appear to be displeased with some portions of the bill, especially the proposed cap on transaction fees. They argued that the bill failed to recognize the unique operational cost of maintaining a kiosk. Crypto kiosk operators charge between 8-20% fees to cover unique expenses like security, maintenance, and analytics. North Dakota’s proposed fee limits don’t account for these costs, effectively banning virtual currency kiosks in the state. Ironically, limiting transaction amounts would undermine anti-money laundering efforts, as customers would be forced to use multiple kiosks. Legislators will review and refine the proposed amendments before voting on the bill. Crypto Scams on the Increase In recent months, authorities have recorded a worrying increase in cryptocurrency-related crimes. This rise in scams, especially those involving crypto ATMs, has led law enforcement to take action. Recently, Niagara police launched an awareness campaign to combat cryptocurrency ATM fraud amid rising cases. The campaign, which was done in partnership with major crypto ATM operators, was geared toward educating the public about possible scams In 2023, North Dakota residents reported 103 crypto scam complaints, resulting in losses of $6.5 million. Recall that the US Federal Trade Commission (FTC) warns of cryptocurrency scams involving crypto ATMs. The post North Dakota Moves To Stump Crypto ATM Thefts appeared first on TheCoinrise.com .

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