The initiative also imposes a maximum fee of $5 per transaction or 3% of the total transaction amount, whichever is greater. In addition, when servicing users at crypto ATMs, warnings about possible fraud should appear.
In testimony before the House Industry, Business and Labor Committee, North Dakota Department of Financial Institutions Commissioner Lisa Kruse said that in 2023, North Dakota residents filed 103 complaints with the Federal Bureau of Investigation (FBI), reporting losses from the use of crypto ATMs totaling amount of $6.5 million.
Previously, the FBI reported that in 2023, Americans lost about $5.6 billion to crypto fraud. The agency registered 5,500 cases related to crypto ATMs—victims of scammers lost more than $189 million through the machines.
One of the authors of the bill, Steve Swiontek, explained that currently there are no protective measures for users of crypto ATMs that regular cash ATMs have. This makes it easier for attackers. It’s especially important to protect senior citizens, who are more susceptible to scams, Swontek said.
Kevin Lolli, assistant general counsel for crypto ATM operator CoinFlip, fears that fee cuts and restrictions on the use of crypto ATMs could seriously harm the company’s business in North Dakota. Typically commissions range from 8% to 20%, which includes the cost of equipment and maintenance, as well as collection and rental of premises. Lolley added that many crypto ATM operators follow anti-fraud measures by reporting suspicious transactions ranging from $2,000 to $10,000 or more to federal authorities.
In January, North Dakota authorities expressed their readiness to consider the possibility of creating a state cryptocurrency reserve, and the choice of a reserve crypto asset would depend on its market capitalization, which should be more than $500 billion. In June, local authorities revoked the license of BAM Trading Services, the operator of the American division of the largest crypto exchange Binance.
Source: Bits

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