Nebraska has taken a firm stance against cryptocurrency fraud as Governor Jim Pillen signed a landmark bill on March 12 to strengthen protections for users of crypto kiosks and ATMs.
With fraud linked to these machines surging across the United States, the legislation—known as the “Controllable Electronic Record Fraud Prevention Act”—aims to clamp down on bad actors while fostering a safer environment for digital asset adoption in the state.
Tougher Regulations
The new law, introduced as LB 609 by Senator Eliot Bostar on January 22, establishes stricter licensing requirements for crypto ATM and kiosk operators. Businesses running these machines must now obtain a license under Nebraska’s Money Transmitters Act, secure approval from the Department of Banking and Finance, and submit detailed quarterly reports on their locations, owners, and transaction activities.
The legislation also caps daily transaction limits—$2,000 for new users and $5,000 for existing customers—to curb large-scale fraudulent transactions. Additionally, fees charged by crypto ATMs cannot exceed 18% of the transaction value, a move designed to prevent excessive surcharges.
To further protect users, the bill mandates clear fraud warnings on ATMs, requires kiosk operators to appoint compliance officers, and introduces a refund mechanism for fraud victims. New users who report fraud within 90 days can receive a full refund, including transaction fees. Existing customers can reclaim any fees lost due to fraudulent transactions.
Crypto ATM Fraud Soars
The crackdown comes in response to alarming fraud statistics reported by the Federal Trade Commission (FTC). Victims lost over $65 million to crypto ATM scams in just the first half of 2024, and losses at Bitcoin ATMs (BTMs) have skyrocketed nearly tenfold since 2020, according to an FTC report from September.
Nebraska’s move follows a national trend of heightened scrutiny on crypto ATMs. Just earlier this month, over 1,200 ATMs were removed across the U.S. after Illinois Senator Dick Durbin pushed for similar regulations.
Notably, Nebraska has yet to join the 21 U.S. states considering official crypto reserves, a move that could further cement its position as a digital asset hub.
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