Legal Crypto In North Dakota

Overview of Cryptocurrency Legality and Regulation in North Dakota

Legality of Cryptocurrency

Cryptocurrency is accepted in North Dakota, and there are no laws on the books banning the use, trade, or possession of cryptocurrency, falling in line with the federal government’s stance that cryptocurrency such as Bitcoin is a legitimate form of currency. In 2025, State Representative Nathan Toman introduced House Bill 1437, an unprecedented legislative initiative to secure the rights of North Dakotans to mine cryptocurrencies, self-custody digital assets, conduct p2p transactions, and run blockchain nodes without any interventions from the state authorities. This legislation makes North Dakota one of the states that has codified such protections when few states have made the move to do so, according to the report, and shows a proactive approach to motivating cryptocurrency adoption. State and federal regulatory requirements, including money transmissions and securities laws, continue to apply.

Regulations in the Cryptocurrency Industry

North Dakota Cryptocurrency Regulation A customized regulatory framework specifically addressing money transmission, consumer protections and blockchain use while adding state-level peculiarities. Important changes are summarized in the table below.

Law/Regulation	Description	Authority	Key Requirement
Money Transmission Laws	Regulates virtual currency exchanges and transfers, amended in 2023 to include cryptocurrencies	ND Department of Financial Institutions	Money transmitter license, AML/KYC compliance
Consumer Protection	Warns of cryptocurrency risks and fraud, with North Dakota-specific investor alerts	ND Securities Department	Investor due diligence
Crypto ATM Regulation (SB 2393)	Caps daily ATM transactions at $2,000, enacted in 2025	ND Senate	Transaction limits to prevent illicit activities
Blockchain Records Recognition	Validates smart contracts and blockchain records under ND Century Code	ND Century Code	Compliance with existing legal standards
Taxation	Applies federal rules treating cryptocurrencies as property	IRS (Federal, applied in ND)	Capital gains reporting

In 2023 North Dakota updated Chapter 13-09 of the North Dakota Century Code to add virtual currencies to the provisions in their money transmission services law, which created a new monetary transmission license for virtual currency companies and amended the definition of currency to include virtual currency, although it does not define virtual currency or issue guidance on the books requirements for virtual currency companies to to become licensed money transmitters (the ND code defines a money transmitter and sets forth requirements of a money transmission license); are required to follow the Bank Secrecy Act for AML/CFT and KYC. Another example of contradictory digital currency policy, North Dakota faces no such industry-wide policy to control its crypto ATMs with an exceptional limitation placed on user transactions of $2,000 a day. The state’s acknowledgement of the legal status of the smart contracts as well as blockchain records forms the backbone which enable cryptocurrency transfers. Federal tax rules, that cryptocurrencies be treated as property, are in effect and, as such, capital gains reporting is required on state and federal tax returns. The North Dakota Securities Department has raised state-specific investor alerts on volatility of cryptocurrency and the risk of fraud, stressing local enforcement.

Cryptocurrency Education Initiative

State-backed The State of North Dakota has shown itself to be friendly to cryptocurrency by starting a cryptocurrency education campaign in 2024 with the state supported framework by the North Dakota Department of Commerce. Through the program, in conjunction with with local institutions such as the University of North Dakota, Babel comes to the region to deliver free workshops, online training and tools to help local residents learn more about cryptocurrency, blockchain and how to invest safely in the space. The initiative is unique, because very few states have public programs focused on educating residents about cryptocurrencies, and marks North Dakota as a pioneer in blockchain awareness at the community level.

Popular Exchanges and Methods of Exchange

None exist for North Dakota residents, who must use U.S.- compliant national exchanges. A few of the best exchanges include Coinbase (great for easy access and support for bitcoin, ethereum, and stablecoins), Kraken (verge trading and security features), Binance US, which provides several cryptocurrencies to choose from; and regulatory complaint Gemini. Centralized exchanges such as those offering fiat-crypto pairs with required AML/KYC protocols in place, P2P transactions platforms such as LocalBitcoins and direct wallets transfers (provided that is done under House Bill 1437), crypto swapped ATMs with daily cap at $2,000 and decentralized platforms like Uniswap, which call for a degree of technical specialization.

Market of DeFi (Decentralized Finance)

Decentralized Finance (DeFi) refers to blockchain based financial applications, mostly on Ethereum, that exist without intermediaries. DeFi is not specifically regulated in North Dakota, but could potentially be regulated under money transmission or securities laws if it involves custody. The state’s affirmation of smart contract transactions, in addition to the constitutionality of blockchain nodes as provided for by House Bill 1437, supports DeFi’s capabilities in lending and trading. The risks associated with the technology, the North Dakota Securities Department has warned, include hacking and lack of oversight. Some of the most well-known ones are Aave, Compound, Uniswap and they're accessed through non-custodial wallets such as MetaMask.

NFT Market (Non-Fungible Token)

NFTs link to a specific piece of art, collectible or virtual asset and are unique digital tokens on a blockchain. NFTs are legal in North Dakota under general securities and consumer protection laws, with no special state restrictions. NFTs that offer a return can be considered as securities under the Howey Test. Marketplaces such as OpenSea, Rarible and Foundation are available and blockchain record authentication verifies NFT ownership. The North Dakota Securities Department zeroes in on the risk of fraud and volatility, with its education program detailing how that relates to NFTs.

Useful Information

• Businesses involved in cryptocurrency exchanges or transfers must obtain a money transmitter license through the North Dakota Department of Financial Institutions.
• Users are limited to $2,000 of transactions per day from a crypto ATM under Senate Bill 2393 (2025).
• According to the announcement, cryptocurrency transactions are federally taxable under the federal capital gains tax regime and therefore also federally reportable on state tax returns.
• The North Dakota Securities Department provides state-specific investor advisories and cryptocurrency risk resources.
• HB 1437 (2025) House Bill 1437 offers security to cryptocoin mining, auto-node operations, self-hold, and peer-to-peer deals.
• The North Dakota Department of Commerce initiative in 2024 is offering free workshops on cryptocurrencies and online resources.
• DeFi services come with the risk of hacks and scams; deal only with trusted protocols and secure wallets.
• Confirmation of NFT projects on platforms like OpenSea will help prevent scammers, and assistance is available through the state’s education initiative.
• Smart contract is clear with DeFi and NFT Dealings amid House Bill 1437 influx – The shot of Recognition.

Conclusion

North Dakota is home to a cryptocurrency-welcoming state with a balanced approach to regulation that supports innovation and the protection of consumers aside from unique projects like House Bill 1437 and the 2024 Cryptocurrency School. Clearer legislation is supplied through laws specific to each state such as money transmission amendments, crypto ATM regulations, and recognition of blockchain records, and expanding user rights and protections are proposed. Resident connects to popular exchanges such as Coinbase and heterogeneous ways to connect to exchanges. DeFi and NFT markets derive value from smart contract recognition, but smart contract risks also exist due to limited oversight. North Dakota citizens are best served by being educated and complying when using these markets.