A new bill aimed at cracking down on cryptocurrency ATM fraud has been signed into law in Nebraska, signaling a significant step towards protecting consumers in the state. Governor Jim Pillen announced the enactment of the Controllable Electronic Record Fraud Prevention Act, which introduces stricter regulations for operators of crypto ATMs.
Under the new law, companies operating crypto ATMs must obtain a license under Nebraska’s Money Transmitters Act and obtain approval from the Department of Banking and Finance before installing machines. Additionally, the legislation imposes daily transaction limits to prevent potential fraud. New users are restricted to sending up to $2,000 per day, while existing customers have a limit of $5,000. Transaction fees are also capped at 18% per transaction.
To combat fraudulent activities, the bill requires ATM operators to display clear warnings about common scams and appoint a compliance officer to oversee anti-fraud measures. In the event of fraud, new customers who report incidents within 90 days are eligible for full refunds, including fees, while existing users can have fees refunded for fraudulent transactions.
Governor Pillen emphasized that the new law is part of Nebraska’s efforts to support the cryptocurrency industry while implementing safeguards to protect residents from criminals. Transparency and consumer protection remain top priorities for the state, according to officials.
Kelly Lammers, Director of the Nebraska Department of Banking, highlighted the state’s commitment to creating a fair and secure environment for cryptocurrency transactions. A dedicated team will be established to closely monitor crypto ATM activities, focusing on detecting fraudulent transactions and ensuring compliance with the new regulations.
The rise in crypto ATM-related fraud cases has prompted other states like Illinois, North Dakota, and Arizona to implement similar restrictions. Illinois Senator Dick Durbin recently introduced The Crypto ATM Fraud Prevention Act, which seeks to establish transaction limits and enhance consumer protections. In Arizona, Representative David Marshall put forth House Bill 2387, proposing comparable restrictions and licensing requirements for kiosk operators.
Nebraska’s proactive approach to regulating cryptocurrency ATMs reflects a broader trend among states to address concerns about fraud and protect consumers in the rapidly evolving digital asset landscape. By implementing stringent oversight measures, the state aims to foster a secure and trustworthy environment for cryptocurrency transactions.