The North Dakota Senate has passed a bill imposing tighter regulations on cryptocurrency ATMs, reinstating a $2,000 daily transaction cap per user. House Bill 1447, which passed in a 45-1 vote on March 18, seeks to protect residents from scams by implementing stricter oversight on crypto ATM operators.

Originally, the bill proposed a $1,000 daily limit, later revised by the House to allow $2,000 per day for the first five transactions within a 30-day period. However, the Senate reinstated a hard $2,000 cap, overriding the House’s previous adjustment. The bill must now return to the House for approval before heading to Governor Kelly Armstrong for final consideration.

If signed into law, the bill will require crypto ATM operators to be licensed as money transmitters in North Dakota. It mandates fraud warning notices at kiosks, blockchain analytics to monitor suspicious activity, and quarterly reports on machine locations, ownership, and transaction data. Proponents argue these measures will reduce scams, as crypto ATMs have been increasingly exploited for fraudulent schemes.

North Dakota House Representative Steve Swiontek, the bill’s primary sponsor, emphasized the need for regulation, citing a lack of consumer protections that have allowed criminals to steal from unsuspecting users. His concerns align with national trends—fraud losses at Bitcoin ATMs have skyrocketed nearly tenfold since 2020, surpassing $65 million in the first half of 2024, according to the Federal Trade Commission.

North Dakota follows Nebraska in implementing such regulations, and federal lawmakers, including Senator Dick Durbin, are also pushing for stricter nationwide oversight. With the U.S. housing 78% of global Bitcoin ATMs, this regulatory shift could signal broader crackdowns on crypto cash-out services across the country.