Nebraska has enacted a new law aimed at preventing fraud in cryptocurrency ATMs, strengthening security measures for users.
Content of the Law
Under the new Nebraska law, cryptocurrency ATM operators must have a money transmitter license and make fees and potential risks known to customers in advance. New customers are limited to $2,000 a day in transactions, while established customers have a limit of $10,500 a day. Operators must also have a refund policy, providing full refunds to new users if fraud is reported.
Governor's Stance and Fraud Statistics
Governor Jim Pillen, who signed the law, emphasized its role in making Nebraska a leader in the crypto industry by 'ensuring that cryptocurrencies cannot be used by criminals.' In 2023, according to AARP, there were 239 reported cryptocurrency scams in Nebraska with losses amounting to $14.6 million.
Other Crypto Legislative Initiatives
The bill was introduced by Eliot Bostar in January and is set to come into effect three months after the legislature adjourns in spring. A separate bill is under consideration to impose a tax on crypto mining. Nebraska has also licensed Telcoin to open the state’s first digital asset bank.
The adoption of the new law in Nebraska highlights the state's commitment to enhancing consumer protection in the crypto space while promoting industry growth.
