The North Dakota Senate has passed a bill regulating cryptocurrency ATMs with a 45-to-1 vote on March 18. House Bill 1447 sets a $2,000 daily transaction limit per user, modified from earlier proposals during the legislative process as reported by BTC Peers.

The legislation aims to protect North Dakota residents from scams by creating new guidelines for cryptocurrency ATM operators. Under the bill, operators must obtain money transmitter licenses in the state and display fraud warning notices on all machines.

The bill originally proposed a $1,000 daily transaction limit. The House committee adjusted this restriction last month, allowing $2,000 daily for the first five transactions within a 30-day period. The Senate version now establishes a flat $2,000 cap.

The push for crypto regulations comes amid broader economic anxiety. Consumer sentiment fell to 57.9 in March, its third consecutive monthly decline, while inflation expectations jumped to 4.9% for the year ahead – the highest since November 2022. This economic uncertainty may impact how consumers approach riskier financial transactions.

Before becoming law, the modified bill must return to the House for approval of the Senate's changes. If passed, it will go to North Dakota Governor Kelly Armstrong for final approval or veto.

The legislation would require crypto ATM operators to:

• Use blockchain analytics to monitor suspicious activity
• Report potential fraud to authorities
• Provide quarterly reports on kiosk locations and transaction data

Representative Steve Swiontek, the bill's primary sponsor, argued during a January hearing that crypto ATMs lack protection measures, which has allowed criminals to exploit them for theft.

North Dakota joins other states taking action on crypto ATM fraud. Nebraska Governor Jim Pillen signed similar legislation on March 13, while U.S. Senator Dick Durbin of Illinois proposed federal regulations on February 25 after a constituent lost $15,000 to scammers.

According to the Federal Trade Commission, fraud losses at Bitcoin ATMs grew nearly tenfold from 2020 to 2023, with losses exceeding $65 million in the first half of 2024. Consumers aged 60 and older face three times the risk of falling victim to such scams.