Nebraska enacts law with $2,000 daily limit for crypto ATMs

Nebraska Governor Jim Pillen signed a bill on March 12 to regulate cryptocurrency kiosks and ATMs, aiming to curb fraud as crypto ATM-related crimes rise across the United States.

The legislation, titled the "Controllable Electronic Record Fraud Prevention Act," introduces licensing requirements, transaction limits, and other safeguards for operators.

Governor Pillen emphasised the importance of protecting Nebraskans from exploitation while fostering a secure environment for cryptocurrency adoption.

“An important part of these efforts is to make sure that we have guardrails to prevent criminals from taking advantage of Nebraskans,” he stated.

The bill, LB 609, requires crypto ATM operators to be licensed under Nebraska’s Money Transmitters Act and mandates registration with the state’s Department of Banking and Finance.

Operators must submit quarterly reports detailing kiosk locations, transaction volumes, and user data.

Daily transaction limits are set at $2,000 for new users and $5,000 for existing customers, while fees cannot exceed 18% of the transaction value.

Victims of fraud can seek refunds under the new law.

New customers who report fraudulent activity within 90 days are eligible for full reimbursements, including fees.

Existing users can recover fees associated with fraudulent transactions.

Additionally, operators must display fraud warnings and appoint compliance officers to enforce preventive measures.

This legislation comes amid a surge in crypto ATM-related scams.

The Federal Trade Commission reported over $65 million in losses tied to such fraud in the first half of 2024 alone.

Fraud at Bitcoin (CRYPTO:BTC) ATMs has increased nearly tenfold from 2020 to 2023.

State officials view the law as a step toward balancing consumer protection with innovation.

“Nebraska is open for business in the cryptocurrency space... we will soon have a team that will be watching even more closely,” stated Kelly Lammers, director of Nebraska’s Department of Banking and Finance.

While Nebraska supports cryptocurrency growth, it has yet to join the 21 states proposing strategic crypto reserves.