North Dakota
North Dakota bill aiming to regulate crypto kiosks, prevent fraud gets mixed reactions
BISMARCK — A bill in the North Dakota House of Representatives aims to regulate cryptocurrency kiosks by limiting deposits, capping fees and requiring fraud detection measures in response to rising concerns over financial scams.
House Bill 1447
would regulate virtual currency kiosks, also known as cryptocurrency kiosks or crypto ATMs. The proposal would license cryptocurrency kiosk operators in North Dakota, limit daily deposits to $1,000, cap fees at 3%, require blockchain analytics to detect suspicious activity and mandate refunds for new customers within 30 days.
Simply put, crypto kiosks allow people to insert cash, turn it into cryptocurrency and deposit it into an electronic wallet. It also allows anyone with an electronic wallet to turn cryptocurrency into cash and withdraw it.
More than $6 million was stolen through cryptocurrency fraud in North Dakota in 2023, and the FBI received over 5,500 complaints involving crypto kiosks nationally in 2023, according to AARP.
Rep. Steve Swiontek, R-Fargo, said scammers are directing people to withdraw money from their bank accounts and put it into the crypto ATMs, where it is deposited directly into the electronic wallets of the scammers.
Swiontek chairs the board of Gate City Bank and has worked in banking for over 40 years.
He told a story about a person in North Dakota who received a message from a fraudster posing as a federal employee saying they would purchase child sexual abuse material using the person’s identity, open offshore accounts in the person’s name and that their family would be in danger if they did not comply with the fraudster’s directives. The person took out nearly $25,000 and gave it to the fraudster using a crypto kiosk. The person almost gave the fraudster another $25,000, but after a conversation with a neighbor who worked in law enforcement, they found out they had been scammed.
A fraud investigator for First Western Bank, Jacob Rued, said another way fraudsters often work is to refer to the crypto ATMs as “federal safety lockers” and tell people they are scamming that their money is not safe in their bank and needs to be deposited in the “federal safety locker.”
“If you ever hear that term, or someone you love says that term to you, you and they are being scammed,” Rued said. “That term does not exist.”
Josh Askvig, state director of AARP North Dakota, said that elderly North Dakotans are especially vulnerable to these crypto scams.
Rep. Ben Koppelman, R-West Fargo, questioned the necessity of caps on daily transactions and fees because he believes it would unnecessarily burden a growing industry. He said there are legitimate reasons for people to use the kiosks because if there weren’t, there wouldn’t be successful, publicly traded companies based on them.
“I just don’t believe that there would be a publicly traded company that’s investing in something that’s 99% scams,” Koppelman said. “And that somehow that’s got across (past) all the regulators that deal with the publicly traded companies.”
Koppelman suggested the implementation of a cap on a user’s first five transactions to protect first-time users from scams without impacting those who regularly use the kiosks.
Rued said without the caps on daily transactions, the bill would be useless.
He shared a story about a person who experienced fraud in Minnesota when he took $50,000 out of his bank account, intending to put it all into the kiosk and give it to the scammer’s electronic wallet, but was stopped at depositing $2,000 into the kiosk by Minnesota’s regulations. After he was stopped, he realized he was being scammed and did not give the remaining $48,000 to the fraudster.
“Without that (cap), he would have lost all $50,000,” Rued said. “Now, could he report that to us the next day? Sure. But in all reality, the money is gone. If you know anything about the blockchain and crypto — I mean the whole essence and principle of it is, once it’s out there, the government can’t go get it. No one can exercise control over it.”
Rue noted he was in favor of the cap on fees, as well. The companies that operate the kiosks are “profiting off the losses of these victims,” he said.
Representatives of two companies that operate cryptocurrency kiosks said they were in support of licensing operators of kiosks but not caps on fees and daily transactions.
Director of Government Relations at Bitcoin Depot Ethan McClelland said the cap on transaction fees and daily transaction amounts would make operating in North Dakota unsustainable and drive responsible operators of crypto kiosks out of the state.
The transaction limits “are encouraging scammers to spread transactions around, and it’s hindering our efforts and law enforcement’s efforts to combat fraud,” McClelland said.
Rued disagreed.
“To be perfectly frank with you,” Rued said, “with no disrespect to them, it’s laughable to me that the transaction limit is going to increase the fraud or it’s going to make it more difficult to investigate. My opinion would be the exact opposite — it’s going to decrease fraud.”
Koppelman said the bill will be worked on in a committee before a recommendation is voted on.
North Dakota
North Dakota State knocks off North Dakota 87-82
FARGO, N.D. (AP) — Jacksen Moni scored 24 points as North Dakota State beat North Dakota 87-82 on Saturday night.
Moni added 10 rebounds for the Bison (16-6, 5-2 Summit League). Jacari White shot 6 for 17 (4 for 13 from 3-point range) and 4 of 4 from the free-throw line to add 20 points. Tajavis Miller shot 5 for 9 (2 for 6 from 3-point range) and 5 of 9 from the free-throw line to finish with 17 points.
The Fightin’ Hawks (8-15, 2-6) were led in scoring by Treysen Eaglestaff, who finished with 22 points and seven rebounds. Amar Kuljuhovic added 12 points for North Dakota. Mier Panoam also recorded 11 points and two steals.
The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.
North Dakota
North Dakota Association of the Blind hosting “Bowling While Blind” event
MOORHEAD — The North Dakota Association of the Blind is hosting a bowling event to raise awareness about blindness.
The organization is hosting “Bowling While Blind” from 4-6 p.m. on Thursday, Jan. 30, at Sunset Lanes, 620 U.S. Highway 75.
The event is being held in conjunction with its Giving Hearts Day campaign, which is happening through Feb. 13, the organization said in a news release.
People who are blind or have low vision can and do bowl, the release said, and attendees can learn about how at the event.
Refreshments will be served.
For more information about the event, call or text Allan Peterson at 701-429-7209 or email
allan.c.peterson@gmail.com.
Our newsroom occasionally reports stories under a byline of “staff.” Often, the “staff” byline is used when rewriting basic news briefs that originate from official sources, such as a city press release about a road closure, and which require little or no reporting. At times, this byline is used when a news story includes numerous authors or when the story is formed by aggregating previously reported news from various sources. If outside sources are used, it is noted within the story.
North Dakota
Bills would increase North Dakota's interstate speed limit, but 1 would cost farmers
BISMARCK — North Dakota may increase the interstate’s speed limit to 80 mph, but one of the bills suggesting the long-requested change could cost farmers.
The House Transportation Committee heard testimony Thursday, Jan. 23, and Friday on two bills that would bump up the speed on Interstates 94 and 29 by 5 mph.
House Bill 1298
would increase the speed limit from 75 mph to 80 mph without a minimum speed.
That bill faced less opposition than
House Bill 1421,
which would set the minimum speed for I-29 and I-94 at 40 mph and the maximum at 80 mph. It also would require farmers who move large equipment on interstates to buy an annual permit, which would cost $25 for each tractor.
The bill initially called for a $100 permit, but the committee changed it to $25.
That fee drew the ire of several agricultural advocates, including the North Dakota Farmers Union and North Dakota Stockmen’s Association.
“HB 1421 raises taxes on farmers, creates farm operational inefficiency, provides unwarranted and unworkable mandates, is unenforceable and does nothing to improve public safety,” the North Dakota Grain Growers Association said in a letter.
The full House voted 69-22 to pass HB 1298 on Friday. HB 1421 has not made it to the House floor, but the Transportation Committee recommended in a 14-0 vote that the bill be killed.
If one of the bills becomes law, the increase would be the first since 2003, when North Dakota upped the speed limit from 70 to 75 mph. Other states, including South Dakota and Montana, have 80 mph speed limits on their interstates.
Minnesota’s interstate speed limit is 70 mph.
At least five other states, including Indiana and New York, also have proposed legislation to up their interstate speed limits to 80 mph.
North Dakota has tried but failed several times over the last decade to increase the interstates’ speed limit, most recently in 2023. Rep. Ben Koppelman, a Republican from West Fargo who introduced HB 1298, wrote the same bill two years ago.
The Legislature passed the bill, but then-Gov. Doug Burgum, a Republican, vetoed it over concerns of speeding-related deaths. He also said he could not support the proposed legislation without a “primary seat belt law.”
The House passed a bill requiring all occupants of a vehicle to wear a seat belt the day after the veto, sending it to Burgum’s office for final approval. The Legislature did not have enough votes to override Burgum’s rejection of the speed limit increase.
Koppelman told The Forum that he feels his bill has at least as much support as it has had in the past.
“This year, we won’t have a governor who’s going to veto what we passed last year as a threat to encourage the passage of the seat belt bill,” he said. “Last session, we did not quite have veto-proof majorities, but we had reasonable margins of victory in each chamber.”
North Dakota
Gov. Kelly Armstrong
has not expressed his view on increasing the speed limit.
“The governor generally doesn’t comment on bills (other than those he’s proposed, of course) before they reach his desk,” said Armstrong spokesman Mike Nowatzki.
In testifying in support of the bill, Geoff Simon said motorists need consistency on interstate. Simon is the executive director of the Western Dakota Energy Association but testified as an individual resident of the state.
No one spoke against HB 1298 when the committee held a hearing on Thursday, though there were letters against it saying it would present safety concerns.
Koppelman said the North Dakota Department of Transportation would prefer a minimum speed limit with a maximum. Rep. Eric Murphy, a Grand Forks Republican who also signed on to Koppelman’s bill, has put his name on such a legislation in the form of HB 1421.
“That was the poison pill that killed the bill that year because the farmers don’t want a minimum speed limit,” Koppelman said of the minimum speed. “I think that’s what is going to likely make my bill to the finish line and not Rep. Murphy’s bill.”
Murphy acknowledged the DOT’s recommendation for a minimum speed. He told The Forum his concerns about tractors not being allowed if a minimum speed is set.
Most modern tractors can drive a maximum of 25 mph.
“Clearly, they should seek other alternatives, but there are some farmers out there who literally have to use the interstate,” Murphy said.
He added language into HB 1421 that would give exceptions to farm tractors, but it would come at a cost.
Along with the $25 permit, a vehicle with flashing hazard signals would have to follow the tractor on the interstate. It also could not let debris fall onto the highway.
“That would allow them to move equipment well below the 40 mph speed limit,” Murphy said.
HB 1421 would also give the North Dakota Department of Transportation the ability to reduce the maximum limit in “a high accident zone,” such as extreme curves in the interstate, to 60 mph, Murphy said. The DOT could reduce the speed when weather impacts travel, according to the bill.
Ag producers use the interstate rarely and as a last resort, said Brent Baldwin, president of the Red River Valley Sugarbeet Growers Association. The bill could open the door to additional fees, he added.
For farmers to get across rivers, particularly at the North Dakota-Minnesota border, the only option is the interstate, said Pete Hanebutt, public policy director for the North Dakota Farm Bureau. Weather can flood roads and force farmers to take the interstate, he said.
“I think there are an awful lot of holes in this bill,” Hanebutt said during a House Transportation Committee hearing on Friday.
Koppelman said HB 1421 is an attempt at a compromise that does not leave anyone happy. There is no reason to support that, he said.
“We don’t need to do that at the expense of farmers,” he said.
-
Technology1 week ago
Nintendo omits original Donkey Kong Country Returns team from the remaster’s credits
-
Culture1 week ago
American men can’t win Olympic cross-country skiing medals — or can they?
-
Education1 week ago
What Happened to Enrollment at Top Colleges After Affirmative Action Ended
-
Culture5 days ago
Book Review: ‘Somewhere Toward Freedom,’ by Bennett Parten
-
Politics1 week ago
U.S. Reveals Once-Secret Support for Ukraine’s Drone Industry
-
World1 week ago
Chrystia Freeland, Justin Trudeau’s ‘Minister of Everything,’ Enters Race to Replace Him
-
Politics1 week ago
Johnson Installs Crawford on Intelligence Panel, Pulling It Closer to Trump
-
News1 week ago
Donation Scams Compound Suffering for Wildfire Victims