North Dakota lawmakers are discussing House Bill 1447, which aims to protect residents from cryptocurrency scams as the number of fraud reports rises. The bill proposes new regulations for crypto kiosks, including daily withdrawal limits of $1,000, fraud warnings, and fee caps of $5 or 3% of the transaction, whichever is higher. Supporters argue these measures are crucial to prevent losses, which totaled about $6.5 million from scams reported in 2023. While some industry representatives favor regulation, they oppose strict fee and transaction limits, fearing they could hinder business. The committee may consider amendments before making a decision on the bill.
North Dakota Lawmakers Tackle Cryptocurrency Scams with New Bill
A new bill in North Dakota aims to protect citizens from cryptocurrency scams, spurred by a concerning rise in fraud incidents. The proposed legislation, known as House Bill 1447, was debated by state lawmakers on Wednesday. The bill introduces stricter regulations for crypto kiosks—commonly referred to as digital currency ATMs—to help safeguard users.
House Bill 1447 proposes several key measures, including:
– Daily withdrawal limits of $1,000 per customer
– Required fraud warning notices displayed on kiosks
– A cap on transaction fees set at $5 or 3% of the transaction amount, whichever is higher
Supporters of the bill, such as Lisa Kruse, North Dakota’s Department of Financial Institutions Commissioner, emphasize the importance of these regulations. In 2023 alone, the FBI reported an alarming $5.6 billion in cryptocurrency fraud losses, with North Dakotans documenting 103 scam complaints that totaled approximately $6.5 million.
The bill also mandates that all crypto kiosks be licensed by the state, and it seeks to establish critical consumer protections, particularly for older residents who may be more vulnerable to scams. Josh Askvig, the state director of AARP North Dakota, highlighted that the measure could save older citizens from losing their life savings to fraudulent activities.
Although industry representatives acknowledge the need for some form of regulation, they express concerns about the proposed fee and transaction limits. Kevin Lolli from CoinFlip, a virtual currency kiosk operator, argues that the limits could effectively ban these kiosks in North Dakota due to their operational costs.
However, supporters like Jacob Rued, a fraud investigator, believe the transaction limit is essential in preventing larger financial losses. He shared a relevant case where a man about to withdraw $50,000 was stopped by the kiosk’s limit, which potentially saved him from falling victim to a scam.
As discussions continue, Rep. Ben Koppelman signaled that lawmakers are open to considering amendments to the bill before taking further action.
Tags: North Dakota, cryptocurrency scams, House Bill 1447, crypto kiosks, consumer protection, financial institutions, digital currency ATMs
What is the new bill in North Dakota about regarding crypto fraud?
The new bill aims to strengthen protections for consumers against cryptocurrency fraud. It sets rules for how crypto businesses must operate and requires them to disclose important information.
Who will be affected by this bill?
The bill affects both consumers and businesses in North Dakota that deal with cryptocurrencies. It’s designed to help protect consumers from scams and ensure businesses follow fair practices.
What kind of protections does the bill offer consumers?
The bill provides several protections, including clear information on risks, more transparency about fees, and guidelines for reporting fraud. This is meant to help consumers make better choices about their cryptocurrency investments.
When will the bill take effect?
The exact date the bill takes effect hasn’t been announced yet. It will likely be after it passes through the state legislature and is signed into law.
How can consumers report crypto fraud in North Dakota?
Consumers can report crypto fraud to state authorities or consumer protection agencies. The new bill will also outline specific steps for reporting issues, making it easier for people to take action if they suspect fraud.
