Hedera (hbar) 
Nebraska has taken a significant step toward enhancing oversight of cryptocurrency ATMs by enacting a new law aimed at reducing fraud. On March 12, Governor Jim Pillen signed the Controllable Electronic Record Fraud Prevention Act into law, introducing stricter regulations for crypto ATM operators.
Stricter Licensing and Reporting Requirements
Under the new legislation, companies operating cryptocurrency ATMs in Nebraska must now obtain a license under the state’s Money Transmitters Act. Additionally, they are required to secure approval from the Nebraska Department of Banking and Finance before installing or operating machines. These measures are designed to ensure greater accountability and transparency in crypto transactions.
Daily Transaction Limits and Fee Caps
The law also imposes daily transaction limits to protect users from potential fraud. New customers can only transfer up to $2,000 per day, while existing users are capped at $5,000 daily. To further regulate the industry, transaction fees are now limited to a maximum of 18% per transaction, ensuring fairer costs for consumers.
Fraud Prevention Measures
To combat rising cases of scams, the legislation mandates that ATM operators display clear warnings highlighting common fraud schemes. Operators must also appoint a compliance officer responsible for enforcing anti-fraud protocols. These requirements aim to educate users and deter malicious activities at crypto kiosks.
Refund Policy for Fraud Victims
As part of the anti-fraud measures, new customers who experience fraud within 90 days are eligible for full refunds, including transaction fees. Existing users can also claim fee refunds for fraudulent transactions. This policy underscores Nebraska’s commitment to protecting its residents from crypto-related scams.
State Officials Emphasize Consumer Protection
Governor Jim Pillen stated that the law is part of Nebraska’s broader initiative to support the cryptocurrency industry while implementing safeguards to protect consumers. “These guardrails are essential to prevent criminals from exploiting Nebraskans,” Pillen remarked.
Echoing this sentiment, Nebraska Department of Banking Director Kelly Lammers emphasized that the state remains “open for business in the cryptocurrency space,” but with a strong focus on ensuring a secure and fair environment for all participants. Lammers also warned that individuals exploiting crypto ATMs to commit fraud would face increased scrutiny under the new regulations.
Dedicated Monitoring Team
To enforce the law effectively, Nebraska is forming a specialized team to closely monitor crypto ATM activities. This unit will focus on identifying fraudulent transactions and ensuring that operators comply with the new rules. Authorities believe this proactive approach will help curb misuse and enhance trust in the system.
Growing Concern Over Crypto ATM Fraud
Nebraska is not alone in addressing the issue of crypto ATM fraud. Several other states, including Illinois, North Dakota, and Arizona, have introduced or proposed similar measures. The rising number of fraud cases linked to crypto ATMs has prompted lawmakers across the U.S. to take action.
Recently, Illinois Senator Dick Durbin proposed the Crypto ATM Fraud Prevention Act, advocating for transaction limits and stronger consumer protections. Similarly, Arizona Representative David Marshall introduced legislation requiring licensing and stricter oversight for kiosk operators.
As more states implement regulatory frameworks, it is clear that consumer protection and transparency remain top priorities in the evolving cryptocurrency landscape. Nebraska’s new law sets a precedent for balancing innovation with robust safeguards, ensuring a safer environment for crypto investors and users alike.
