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crypto.news 2025-03-13 06:42:44

Nebraska enacts stricter rules for crypto ATMs to curb fraud

Nebraska enacts stricter rules for crypto ATMs to curb fraud

A bill tightening oversight on cryptocurrency ATMs to curb fraud has been signed into law in Nebraska. According to a March 12 press release from Nebraska Governor Jim Pillen, the new law, called the Controllable Electronic Record Fraud Prevention Act , introduces stricter licensing and reporting requirements for crypto ATM operators. It was introduced as a part of Legislative Bill 609, introduced by Senator Eliot Bostar on January 22. Companies running crypto ATMs must now be licensed under Nebraska’s Money Transmitters Act and get approval from the state’s Department of Banking and Finance before setting up machines. Further, the legislation also imposes daily transaction limits. Notably, new users can only send up to $2,000 per day, while existing customers have a $5,000 cap. Fees are also regulated, with a maximum of 18% per transaction. To tackle fraud, the bill mandates that ATM operators display clear warnings about common scams and employ a compliance officer to enforce anti-fraud measures. New customers who report fraud within 90 days are eligible for full refunds, including fees, while existing users can get fees refunded for fraudulent transactions. Commenting on the development, Pillen described the move as part of Nebraska’s broader effort to support the crypto industry by placing “guardrails to prevent criminals from taking advantage of Nebraskans.” Officials have stressed that transparency and consumer protection remain top priorities for the state. You might also like: U.K. man sentenced to 4 years for illegal crypto ATM operation According to Nebraska Department of Banking Director Kelly Lammers, the state is “open for business in the cryptocurrency space,” but that comes with a responsibility to ensure a fair and secure environment. Those using crypto ATMs to exploit Nebraskans will face closer scrutiny, he added. To enforce these new measures, Nebraska is setting up a dedicated team to monitor crypto ATM activity more closely. Lammers hinted that this unit will focus on tracking fraudulent transactions and ensuring compliance with the new regulations. Similar concerns have prompted several states, including Illinois, North Dakota , and Arizona, to impose restrictions as crypto ATM-related fraud cases continue to rise. Last month, Illinois Senator Dick Durbin introduced The Crypto ATM Fraud Prevention Act, which aims to impose transaction limits and strengthen consumer protections. On Feb. 8, Arizona Representative David Marshall introduced House Bill 2387 , proposing similar restrictions and licensing requirements for kiosk operators. Read more: Senator proposes limits on crypto ATM transactions to combat scams

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