Nebraska Governor Jim Pillen has officially signed a new law aimed at protecting the state’s residents from cryptocurrency-related fraud, especially as crimes involving crypto ATMs continue to surge across the United States.
The legislation, signed on March 12, is a direct response to the rising incidents of fraud connected to crypto kiosks and ATMs, a problem that has grown significantly in recent years.
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New Law Aims to Protect Users of Crypto Kiosks and ATMs
The new law, known as the “Controllable Electronic Record Fraud Prevention Act,” seeks to curb fraud and protect users of crypto kiosks and ATMs.
“Cryptocurrency is an important, emerging industry, and we’ve been working hard to build Nebraska into a cryptocurrency leader,” Governor Pillen remarked after the bill’s signing.
“An important part of these efforts is to make sure that we have guardrails to prevent criminals from taking advantage of Nebraskans,” he added.
The Federal Trade Commission has reported alarming statistics, with victims losing over $65 million to crypto ATM fraud in the first half of 2024 alone. Fraud at Bitcoin ATMs (BTMs) has seen a nearly tenfold increase from 2020 to 2023, according to the Commission’s September report.
Introduced by Senator Eliot Bostar, the bill, LB 609, mandates that crypto ATM and kiosk operators be licensed under Nebraska’s Money Transmitters Act and be approved by the Department of Banking and Finance.
Cryptocurrency is an emerging industry, and we’ve been working hard to build Nebraska into a crypto leader. We want everyone to know that we’re open for business – and that we’re doing it the right way. @NebraskaDBF @TeamPillen https://t.co/2b0YtzG8xL
— Governor Jim Pillen (@TeamPillen) March 12, 2025
The law also requires operators to submit quarterly reports on kiosk locations and transaction data. To further protect consumers, it imposes transaction limits of $2,000 per day for new users and $5,000 for established customers, while fees cannot exceed 18% of the transaction value.
The legislation also includes a provision for new customers to receive a full refund, including fees, if fraud is reported within 90 days, while existing customers can be refunded for fees tied to fraudulent transactions.
Additionally, crypto kiosks must display fraud warnings and appoint a compliance officer to enforce anti-fraud measures.
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Nebraska Positions Itself as a Growing Hub for the Cryptocurrency Industry
Nebraska is positioning itself as a supportive hub for the cryptocurrency industry.
“Those who target our citizens using crypto ATMs as part of their transfer method, we will soon have a team that will be watching even more closely,” the state’s Department of Banking Director Kelly Lammers said.
While Nebraska continues to promote cryptocurrency, it has not yet joined the ranks of 21 U.S. states actively working on establishing strategic crypto reserves.
In January, North Dakota legislators deliberated House Bill 1447, a newly introduced measure aimed at reducing crypto ATM-related scams by imposing transaction limits and implementing stricter consumer protections.
The bill proposes capping daily withdrawals at $1,000, limiting fees to $5 or 3% of the transaction amount (whichever is higher), and requiring fraud warning notices on all crypto ATMs.
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Key Takeaways
- Nebraska’s new law aims to protect residents from rising cryptocurrency ATM fraud by introducing stricter regulations for operators.
- The legislation imposes transaction limits and mandates refunds for fraud, along with fraud warnings and compliance officers at crypto kiosks.
- Nebraska is positioning itself as a cryptocurrency-friendly state while taking steps to prevent fraud and protect consumers.
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