North Dakota Senate Approves Crypto ATM Bill to Implement Licensing System
North Dakota House Bill 1447 would require virtual currency kiosk operators to obtain money transmitter licenses, use blockchain analytics to detect fraud, and limit individual daily transactions to $2,000.
Sam Reynolds | Edited by Parikshit Mishra on 19 Mar 2025 6:42 UTC
Key points:
- North Dakota is moving toward implementing a licensing system for crypto ATMs after the Senate approved a bill that would set rules for the industry.
- Bill 1447 requires crypto ATM operators to provide fraud warnings, obtain money transmitter licenses, use blockchain analytics software to detect fraudulent activity, produce quarterly reports, and appoint a person responsible for compliance.
- This comes amid growing concerns about cryptocurrency ATM fraud, with FTC data showing a nearly tenfold increase in Bitcoin ATM fraud losses since 2020, and a report from TRM Labs indicating that cryptocurrency ATMs have caused at least $160 million in illicit transactions since 2019.
The US state of North Dakota is moving closer to creating a licensing system for cryptocurrency ATMs after the Senate passed a bill that would provide a legal framework for the sector.
Originally proposed on January 15, House Bill 1447 aims to protect consumers from cryptocurrency ATM fraud by requiring operators to display fraud warnings on screens, obtain licenses to operate money transmitters, use blockchain analytics software to detect and stop fraud, and provide quarterly reports on kiosk locations and transactions.
In addition, operators must designate a compliance officer.
As CoinDesk previously reported, a report from TRM Labs found that crypto ATMs have been responsible for at least $160 million in illicit transactions since 2019, and law enforcement agencies around the world view them as a major source of money laundering and fraud risks.
FTC data also shows a nearly tenfold increase in Bitcoin ATM fraud losses since 2020.
In the United Kingdom, the Financial Conduct Authority, which is the country's market regulator, has stepped up its oversight of the sector, cracking down on unregistered operators.
In 2024, the FCA brought charges against Olumide Osunkoya for operating illegal crypto ATMs that processed $3.4 million, the first such case in the country. Osunkoya was recently sentenced to four years for his role in the illegal crypto ATM network, and was also convicted of forgery, using false identification, and possessing criminal property.
In light of rising fraud and increased regulatory scrutiny, the number of crypto ATMs is not increasing despite the rising price of BTC in 2024. Data from CoinATMRadar shows that the number of crypto ATMs in the US has remained roughly the same since 2022.
