YEREVAN (CoinChapter.com) — Nebraska Governor Jim Pillen has signed LB 609, a bill to regulate crypto ATMs and kiosks, citing growing fraud cases. The new law, known as the Controllable Electronic Record Fraud Prevention Act, sets licensing requirements, transaction limits, and fraud prevention measures for operators.
Governor Pillen addressed the need for regulation on March 12, stating, “Cryptocurrency is an important, emerging industry, and we’ve been working hard to build Nebraska into a cryptocurrency leader.” He added that the bill establishes guardrails against fraudulent activities.
Crypto ATM Operators Must Obtain Licenses and Report Data
Under LB 609, all crypto ATM operators must be licensed under Nebraska’s Money Transmitters Act. The bill requires operators to register with the Department of Banking and Finance before installing or managing machines.
Operators must submit quarterly reports listing kiosk locations, transaction volumes, and customer data. These records help track suspicious activities and prevent fraud.
Additionally, crypto kiosk operators must display fraud warnings at their machines. Each operator must also appoint a compliance officer responsible for enforcing security measures.
Nebraska Bill: Transaction Limits and Fee Caps for Crypto ATMs
The new law sets transaction limits for crypto ATM users. New customers can only withdraw $2,000 per day, while existing customers have a $5,000 daily limit. These restrictions aim to reduce large-scale fraud cases.
The bill also caps transaction fees at 18% of the total value. Crypto ATM fees have been a major concern, with some machines charging excessively high rates.
For fraud victims, the bill includes refund policies. New users who report fraud within 90 days will receive a full refund, including fees. Existing users can get a refund for fees lost in fraudulent transactions.
Crypto ATM Fraud Reaches $65 Million in 2024
According to the Federal Trade Commission (FTC), crypto ATM fraud caused $65 million in losses in the first half of 2024. The report states that Bitcoin ATM (BTM) fraud has increased nearly tenfold from 2020 to 2023.
Other states have also introduced crypto ATM regulations. In Illinois, a recent law led to the removal of 1,200 crypto ATMs after Senator Dick Durbin introduced new restrictions.
Nebraska Expands Crypto Oversight
State Department of Banking director Kelly Lammers said Nebraska will increase monitoring of crypto ATMs.
“Nebraska is open for business in the cryptocurrency space,”
he said.
“Those that 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.”
Notably, Nebraska has not yet joined the 21 U.S. states proposing state-backed crypto reserves, according to the Bitcoin Reserve Monitor. However, the state continues to implement crypto regulations aimed at protecting users and preventing fraud.
