Noord -Dakota Wetgevers have taken a decisive step towards the regulation of crypto money machines, where a bill is approved with a daily transaction limit of $ 2,000 per user.
The Senate passed on March 18 House Bill 1447“ Promoting legislation designed to curb fraud and improve supervision.
HB 1447 tries to protect residents against rising fraud cases that are linked to crypto money machines. According to Coin ATM -Radar, North Dakota is currently organizing around 45 Bitcoin money machines from around 29,730 machines in the United States.
With approval of the Senate that is secured, the bill will probably return to the parliament for further consideration before it is achieved for the governor’s office for definitive approval. If determined, North Dakota would set up a stronger regulatory framework to tackle crypto atm fraud while retaining the accessibility of the user.
Bill Details
HB 1447 introduces stricter guidelines for crypto ATM operators, which means they have to obtain a money channel license before they run their machines in North Dakota.
The account requires clear and easily readable disclosures of general terms and conditions in the customer’s preferred language.
It is also mandatory to use blockchain analysis aids to detect fraudulent transactions, to follow suspicious portfolio activities and mark potential money laundering programs. Regulators would be able to ask for proof that operators use these tools effectively.
Crypto money machines are also required to display fraud alerts before they process transactions, so that users can identify potential scams.
In addition, operators must prepare and maintain a written anti-fraud policy, so that proactive steps are taken to detect and prevent fraudulent activities.
The bill stated:
“A virtual -currency -kiosk -operator must take reasonable steps to detect and prevent fraud, including setting up and maintaining a written antifraud policy.”
In addition to security measures, the legislation maintains a daily recording hood of $ 2,000. Initially, legislators proposed a limit of $ 1,000, but the threshold was later increased to make greater flexibility possible while retaining fraud security guards.
The bill requires that ATM operators offer live assistance on weekdays from 8 a.m. to 10 p.m. central time to improve customer service. A free customer service number must be prominently displayed on the machine or interface.
