BISMARCK – A bill debated Wednesday by North Dakota lawmakers aims to protect residents from cryptocurrency scams.
House Bill 1447 would add new requirements for crypto kiosks – or ATMs for digital currency – such as daily withdrawal limits, fraud warning notices, and a cap on fees.
Supporters say the proposal aims to counter a rise in scams involving cryptocurrency. The FBI reported $5.6 billion in crypto fraud losses in 2023, according to testimony submitted by Lisa Kruse, commissioner of the North Dakota Department of Financial Institutions.
North Dakotans reported 103 digital currency scam complaints to the FBI in 2023, involving about $6.5 million in losses, Kruse said.
She told members of the House Industry, Business, and Labor Committee she believes the actual losses are likely higher because people can be reluctant to report they have been scammed.
The bill would require crypto kiosks to be licensed by the state. It also would limit the amount that can be deposited or withdrawn at a digital currency kiosk to $1,000 per customer, per day and require disclaimers on the machine alerting users to possible online scams.
The proposal would limit fees to $5 per transaction, or 3% of the transaction amount, whichever is greater.
Josh Askvig, state director of AARP North Dakota, speaks during a committee hearing on digital currency kiosks on Jan. 22, 202
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