North Dakota supervisors are debating a bill that introduces consumer protection to combat scams with cryptocurrency money machines.
During a January 22 hearingWetgevers in North Dakota discussed House Bill 1447Introduced in the legislative meeting of the State earlier this month, which wants to take out daily admissions, regulate transaction costs and fraud -warning messages on crypto -money machines mandate to protect residents against financial scams.
For those who are unknown, crypto money machines are kiosks at physical locations with which users can convert cash into cryptocurrencies and vice versa. However, the limited regulations surrounding these machines and the anonymity of cryptocurrency transactions have made them increasingly susceptible to exploitation by scammers, which they use as a channel for the funnel of illegal loot.
According to Lisa Kruse, commissioner of North Dakota Department of Financial Institutions, the local population submitted 103 Crypto wang complaints to the FBI in 2023, which resulted in reported $ 6.5 million losses.
The reported losses are much higher when considering the latest data from the Federal Trade Commission, which shows that scam incidents in the United States increased more than ten times between 2020 and 2023.
During the hearing, house representative Steve Sreidek, the primary sponsor of the bill, issued concern about the current lack of regulations and protection measures that make it easier for criminals to operate crypto money machines.
What is House Bill 1447?
The bill tries to take various protection measures, such as draining daily recordings at $ 1,000 and limiting transaction costs to $ 5 or 3% of the transaction amount, depending on which higher.
Moreover, it requires all crypto money machines to display fraud warning messages to warn users of common swind tactics and to advise them to contact law enforcement if they suspect fraudulent activities. Users are also informed of the irreversible nature of crypto transactions, so that they are aware that funds, once sent, may not be restored.
In the meantime, KIOSK operators will be obliged to obtain a license, to comply with requirements that apply to money channels according to the State Act and submit three -month reports to the state commissioner.
They must also ensure that kiosks are placed in commercially accessible areas, are accessible to users with mobility restrictions and are equipped with sufficient security measures such as correct lighting and surveillance.
The bill has received support from committee members and industrial representatives, including Kevin Lolli from Coinflip, who supported his consumer protection measures, but was against transaction limits and reimbursements.
Regular efforts
With crypto-ATM-related fraud cases in the elevator, supervisors have moved around the world to tighten the supervision of the sector. Concern about money laundering and non -regulated operations also remain paramount.
Niagara’s regional police announced a similar initiative on January 22, where it would work with large kiosk operators in Ontario, Canada, to give warnings to crypto ATM machines.
In the meantime, the authorities in Germany reported to carry out the national raids to combat crypto -operations without a permit. About $ 28 million in cash and 13 kiosks were seized as part of the effort.
