Committee hears competing views on regulating cryptocurrency kiosks; AARP, banks and law enforcement urge limits, operators oppose caps

House Industry, Business and Labor Committee members opened a hearing on House Bill 1447, which would impose licensing, consumer-disclosure and operational requirements on virtual-currency kiosks commonly called cryptocurrency ATMs.

Representative Steve Swiatek, the bill sponsor, said kiosks have proliferated in retail locations and are being used in scams that direct victims to withdraw cash and load it into a kiosk to transfer funds into a criminal-controlled crypto wallet. “There was $6,000,000 that were fraudulently taken away from North Dakotans,” Swiatek told the committee, describing cases in which victims attempted to deposit large sums at kiosks after being coerced by fraudsters.

Josh Askvig, state director for AARP, testified HB 1447 is based on AARP model language and urged consumer protections including licensing, prominently posted fraud warnings and a daily transaction limit. Askvig cited FBI and AARP data showing large dollar losses nationwide and in North Dakota and said kiosks lack the consumer safeguards common to depository institutions. He said the bill requires paper receipts, visible anti-fraud messaging, fee disclosures and a $1,000…