A new bill introduced in North Dakota aims to provide more protection to users of cryptocurrency ATMs from potential scams and fraud. The bill, known as HB 1201, would require operators of these ATMs to maintain a surety bond of at least $100,000 to cover any potential losses incurred by users due to illegal activity.
This proposed legislation comes in response to a growing number of reports of cryptocurrency ATM scams and fraudulent schemes targeting unsuspecting users. By requiring operators to maintain a surety bond, the bill seeks to provide users with an added layer of protection and ensure that they are not left financially vulnerable.
In addition to the surety bond requirement, HB 1201 also mandates that cryptocurrency ATM operators disclose any fees associated with the use of their machines upfront. This transparency is aimed at preventing users from falling victim to hidden charges or deceptive practices that could result in financial loss.
The bill has received bipartisan support in North Dakota, with legislators recognizing the need to regulate the rapidly growing cryptocurrency market to protect consumers. If passed, HB 1201 would make North Dakota one of the first states to implement such stringent regulations for cryptocurrency ATMs.
Overall, the goal of this bill is to create a safer and more secure environment for cryptocurrency users in North Dakota and to deter fraudulent actors from preying on unsuspecting individuals. By implementing these safeguards, the state hopes to encourage the growth and adoption of cryptocurrencies while safeguarding the interests of its residents.
As the cryptocurrency industry continues to evolve and expand, regulations like HB 1201 may become more common as lawmakers seek to protect consumers and investors from potential risks and scams. It remains to be seen whether other states will follow North Dakota’s lead in implementing similar measures to safeguard the growing number of cryptocurrency users.
