The Nebraska bill LB609 has been signed into law by Nebraska Governor Jim Pillen, aiming to safeguard users of Bitcoin ATMs and other electronic kiosks.
The Controllable Electronic Record Fraud Prevention Act introduces regulations to alert individuals about potential fraudulent activities, thereby helping to protect them. Although the bill’s text doesn’t heavily emphasize crypto terminology, the governor’s office released a statement on Thursday highlighting its importance in the state’s acceptance of cryptocurrency.
“Cryptocurrency represents a vital, emerging sector—and we are diligently working to make Nebraska a leader in this field,” stated Governor Pillen in the announcement. “A crucial aspect of these initiatives is to ensure we have safeguards in place to prevent criminals from exploiting Nebraskans.”
Among the rules stipulated by the Fraud Prevention Act is the requirement for electronic kiosk operators to transparently and prominently disclose all terms to users, including specific warnings about consumer fraud indicators.
Furthermore, the act provides explicit guidelines for behaviors resulting from fraud. For instance, customers who report fraudulent activities to the operator and law enforcement within 90 days may qualify for a full refund.
“Nebraska is open for business in the cryptocurrency sector,” remarked Kelly Lammers, the Director of the Nebraska Department of Banking. “Those conducting lawful business in Nebraska are warmly welcomed.”
“Conversely, those who target our residents,” Lammers added, “seeking to exploit Nebraskans and their financial resources through crypto ATMs, will soon face increased scrutiny from our dedicated team.”
The prevalence of fraudulent activities at Bitcoin ATMs and cryptocurrency kiosks has surged alongside their growing popularity. According to data shared with NBC News, the Federal Trade Commission (FTC) reported that consumers lost over $110 million in scams related to these machines in 2023.
In late February, Illinois Senator Dick Durbin introduced a comparable bill aimed at regulating Bitcoin ATMs within his jurisdiction. Current data from Coin ATM Radar shows that almost 30,000 Bitcoin and cryptocurrency ATMs are currently operational in the United States.
Unlike many other states, Nebraska is not considering legislation to develop a Bitcoin and/or cryptocurrency reserve at this moment. Last week, President Trump signed an executive order to initiate a national strategic Bitcoin reserve alongside a separate digital asset stockpile.
Edited by Andrew Hayward
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