In a significant move to protect consumers, Nebraska has enacted new legislation aimed at tightening the oversight of cryptocurrency ATMs. As of March 12, the Controllable Electronic Record Fraud Prevention Act has been signed into law, reflecting the state’s commitment to combating fraud in the ever-evolving world of digital currency.
This legislative measure was initiated through Legislative Bill 609, introduced by Senator Eliot Bostar on January 22. With the rapid increase in crypto ATM usage, the need for stringent regulations has become paramount. Under the new law, companies operating crypto ATMs will be required to obtain licenses under Nebraska’s Money Transmitters Act and receive approval from the state’s Department of Banking and Finance prior to deploying any machines.
Furthermore, the new regulations set daily transaction limits to diminish potential fraud. New users will be restricted to a maximum of $2,000 per day, while existing customers have a cap of $5,000. In addition, transaction fees will now be capped at a maximum of 18%. This approach not only aims to safeguard consumers but also to enhance the transparency of crypto transactions.
- New users can send up to $2,000 per day.
- Existing users have a limit of $5,000 per day.
- Transaction fees are capped at 18% per transaction.
To further deter fraud, the legislation requires ATM operators to prominently display warnings about common scams. Moreover, they must designate a compliance officer to ensure adherence to anti-fraud policies. In a consumer-friendly approach, new customers who report fraudulent activity within 90 days will be eligible for full refunds, including any associated fees.
Governor Jim Pillen emphasized that these regulations serve as part of Nebraska’s broader initiative to foster the crypto industry while remaining vigilant against exploitation. “We need to ensure that there are guardrails in place to prevent criminals from taking advantage of Nebraskans,” Pillen remarked. The state’s focus emphasizes both transparency and the urgency of consumer protection.
Director of the Nebraska Department of Banking, Kelly Lammers, announced the formation of a specialized team charged with monitoring crypto ATM activity. This unit will play a crucial role in overseeing compliance and efficiently tracking fraudulent transactions. Nebraska’s approach sets a precedent, as other states such as Illinois, North Dakota, and Arizona also explore tighter regulations amid the growing cases of crypto ATM fraud.
As the digital currency landscape continues to evolve, Nebraska’s proactive measures reflect a vital step toward creating a secure and responsible environment for cryptocurrency transactions.
