Deutsch한국어日本語中文EspañolFrançaisՀայերենNederlandsРусскийItalianoPortuguêsTürkçePortfolio TrackerSwapCryptocurrenciesPricingIntegrationsNewsEarnBlogNFTWidgetsDeFi Portfolio TrackerOpen API24h ReportPress KitAPI Docs

Nebraska Cracks Down on Crypto ATM Scams with New Law

15h ago
bullish:

0

bearish:

0

Share

Nebraska Governor Jim Pillen has signed a new law aimed at preventing fraud in cryptocurrency ATMs and kiosks. The legislation introduced strict licensing rules, transaction limits, and refund policies to protect users from rising scams. With crypto-related fraud increasing across the country, state officials believe these measures will help prevent criminals from exploiting digital asset users.

New Law Establishes Crypto ATM Regulations

The recently signed Controllable Electronic Record Fraud Prevention Act sets new requirements for businesses operating cryptocurrency ATMs in Nebraska. All operators must obtain a license under Nebraska’s Money Transmitters Act and receive approval from the Department of Banking and Finance to continue offering services. The law also mandates regular reports on kiosk locations, operator details, and transaction data.

Governor Jim Pillen emphasized the importance of protecting residents while allowing innovation in the crypto space. Following the signing of the bill, he stated that Nebraska has been working to establish itself as a leader in cryptocurrency. 

At the same time, he acknowledged the need for safeguards to prevent bad actors from taking advantage of Nebraskans.

Stronger Consumer Protections for Crypto ATM Users

To prevent fraud and ensure user safety, the law introduces limits on cryptocurrency ATM transactions. New users will be restricted to $2,000 per day, while existing customers can conduct transactions of up to $5,000 per day. The law also sets a cap on service fees, ensuring they do not exceed 18% of the transaction value.

Crypto ATM operators must display fraud warnings at kiosks and assign a compliance officer to oversee fraud prevention efforts. In cases where fraud occurs, new customers who report incidents within 90 days will be eligible for a full refund, including fees. Existing users will have the opportunity to recover fees related to fraudulent transactions.

Rising Crypto ATM Fraud Prompts Action

The Federal Trade Commission has reported a sharp increase in cryptocurrency ATM fraud across the United States. More than $65 million was lost to scams in the first half of 2024 alone. The agency also noted that fraud-related losses at Bitcoin ATMs surged nearly tenfold between 2020 and 2023.

Nebraska’s Department of Banking Director Kelly Lammers reinforced the state’s commitment to preventing fraud while fostering a healthy crypto ecosystem. He acknowledged that Nebraska is open to cryptocurrency businesses but stressed that authorities will be closely monitoring individuals who use ATMs as part of fraudulent activities.

Nebraska is not the only state increasing oversight of cryptocurrency transactions. Illinois recently saw more than 1,200 crypto ATMs shut down after the state introduced similar regulatory measures. Across the country, several states are tightening crypto laws, though Nebraska has yet to join the growing list of states proposing strategic cryptocurrency reserves.

With this law now in effect, Nebraska aims to strengthen protections for digital asset users while maintaining an open stance toward cryptocurrency innovation.

The post Nebraska Cracks Down on Crypto ATM Scams with New Law appeared first on Coinfomania.

15h ago
bullish:

0

bearish:

0

Share
Manage all your crypto, NFT and DeFi from one place

Securely connect the portfolio you’re using to start.