North Dakota Senate Approves Bill for Crypto ATM Licensing Framework
The North Dakota Senate has passed House Bill 1447, establishing a licensing regime for crypto ATMs aimed at consumer protection. Key provisions include:
- Operators must provide on-screen fraud warnings
- Mandatory money transmitter licenses for operators
- Use of blockchain analytics to detect fraud
- Quarterly reports on kiosk locations and transactions
- Appointment of a compliance officer
A report from TRM Labs indicates that crypto ATMs have been linked to over $160 million in illicit transactions since 2019. The FTC reports a nearly tenfold increase in bitcoin ATM scam losses since 2020.
In the UK, the Financial Conduct Authority is intensifying its oversight of crypto ATMs. This includes charging Olumide Osunkoya for illegally operating a network processing $3.4 million, leading to a four-year prison sentence.
Despite BTC price increases in 2024, the number of crypto ATMs in the U.S. has remained stable since 2022, reflecting rising fraud concerns and regulatory scrutiny.