Nebraska Governor Jim Pillen has signed into law the "Controllable Electronic Record Fraud Prevention Act," aimed at addressing fraud associated with crypto ATMs.
Nebraska Governor Jim Pillen has signed into law the "Controllable Electronic Record Fraud Prevention Act," aimed at addressing fraud associated with crypto ATMs.
The legislation, designated as LB609, mandates that operators of crypto kiosks be licensed under the Nebraska Money Transmitters Act and provide clear disclosures regarding their services.
In a statement released on Wednesday, Pillen emphasized the need for protective measures to safeguard consumers from potential scams. He stated that the new law is part of a broader initiative to position Nebraska as a leader in the cryptocurrency sector while ensuring that adequate safeguards are in place to prevent exploitation.
The bill, introduced by Senator Eliot Bostar in January, requires operators to inform customers about the risks associated with cryptocurrency transactions, including warnings about potential fraud. This move is in response to a surge in scams linked to crypto ATMs, which have raised concerns among regulatory bodies.
Nebraska Department of Banking Director Kelly Lammers highlighted the state's commitment to monitoring the crypto landscape, indicating that a specialized team would be established to oversee activities related to crypto ATMs.
Lammers noted that the law aims to target those who exploit Nebraskans through fraudulent practices.
The Federal Trade Commission has reported a significant increase in consumer losses tied to scams involving Bitcoin ATMs, with losses exceeding $65 million in the first half of 2024 alone. In parallel, U.S. Senator Dick Durbin has introduced the Crypto ATM Fraud Prevention Act to further combat fraud in this sector.
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