Nebraska Gov. Jim Piren has signed the Act on Controllable Electronic Record Fraud Prevention Act, which aims to address fraud related to cryptographic ATMs.
The law designated for LB609 requires cryptographic kiosk operators to be licensed under the Nebraska Remittance Act and provide clear disclosure of services.
In a statement released Wednesday, Piren highlighted the need for protective measures to protect consumers from potential fraud. He said the new law is part of a broader initiative to position Nebraska as a leader in the cryptocurrency sector and ensures that adequate safeguards are in place to prevent exploitation.
The bill, introduced by Senator Elliot Boster in January, requires operators to notify customers of risks related to cryptocurrency transactions, including warnings about potential fraud. The move addresses a surge in crypto ATM-related fraud that raised concerns among regulatory bodies.
Nebraska Bank Director Kelly Lamars Office highlights the state’s commitment to monitoring crypto landscapes and shows that a specialist team will be established to oversee crypto ATM-related activities.
Lammers noted that the law aims to target people who exploit Nebraskans through fraud.
The Federal Trade Commission reports a significant increase in consumer losses related to fraud, including Bitcoin ATMs, with losses of over $65 million in the first half of 2024 alone. In parallel, US Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act to combat further combat in the sector.