Nebraska governor signs bill to regulate crypto ATMs, citing growing fraud

The politician of Nebraska, Jim Pillen, has signed authorities to support against cryptocurrency fraud arsenic crypto ATM transgression skyrockets successful the United States.

“Cryptocurrency is an important, emerging industry, and we’ve been moving hard to physique Nebraska into a cryptocurrency leader,” said Governor Pillen connected March 12 pursuing the signing of the bill. 

“An important portion of these efforts is to marque definite that we person guardrails to forestall criminals from taking vantage of Nebraskans,” helium added.  

The bipartisan authorities establishes the “Controllable Electronic Record Fraud Prevention Act,” which is designed to assistance combat fraud and support users of crypto kiosks and ATMs.

Source: Jim Pillen

According to the Federal Trade Commission, victims person mislaid implicit $65 cardinal to crypto ATM fraud successful the archetypal fractional of 2024. “Fraud losses astatine BTMs (Bitcoin ATMs) are skyrocketing, expanding astir tenfold from 2020 to 2023,” the committee reported successful September. 

The bill, LB 609, was introduced connected Jan. 22 by Senator Eliot Bostar. It stipulates that crypto ATM and kiosk operators indispensable beryllium licensed nether Nebraska’s Money Transmitters Act and registered and approved by the Department of Banking and Finance. Operators indispensable supply quarterly reports connected kiosk locations, names and transaction data.

It besides implements transaction limits of $2,000 per time for caller users and $5,000 per time for existing customers, and fees cannot transcend 18% of the transaction value. 

New customers who study fraud wrong 90 days tin person a afloat refund including fees, portion existing customers tin beryllium refunded for the fees associated with fraudulent transactions.

Kiosk operators indispensable besides show fraud warnings and name a compliance serviceman to enforce fraud prevention measures, it states. 

The US crypto ATM web shrunk by much than 1,200 machines earlier this period aft Illinois Senator Dick Durbin introduced akin legislation. 

Related: Nebraska measure seeks just play for crypto mining, ownership 

“Nebraska is unfastened for concern successful the cryptocurrency space,” commented authorities Department of Banking manager Kelly Lammers, who added, “those that people our citizens … utilizing crypto ATMs arsenic portion of their transportation method, we volition soon person a squad that volition beryllium watching adjacent much closely.”

While being supportive of crypto, Nebraska has yet to articulation the 21 US states that person projected authorities to found strategical crypto reserves, according to the Bitcoin Reserve Monitor. 

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