Nebraska Governor Jim Pillen has announced the enactment of the Controllable Electronic Record Fraud Prevention Act, a new law to strengthen licensing and reporting standards for crypto ATM operators.
Signed into law on March 12, the legislation is part of Legislative Bill 609, introduced by Senator Eliot Bostar on January 22.
Under the new regulations, crypto ATM operators must obtain a license under Nebraska’s Money Transmitters Act and secure approval from the Department of Banking and Finance before setting up machines. This move ensures that only compliant and authorized businesses can operate within the state, enhancing consumer protection and accountability.
The new legislation establishes strict transaction limits to prevent misuse, allowing new users to send up to $2,000 daily and existing users up to $5,000. It also caps transaction fees at 18% and requires ATM operators to display scam warnings and appoint compliance officers to enhance anti-fraud measures. Additionally, the bill offers full refunds, including fees, to new customers who report fraud within 90 days and allows existing users to claim refunds on fees for fraudulent transactions, ensuring consumer protection against financial losses due to scams.
Governor Pillen emphasized that the new law is crucial in balancing innovation with safety, highlighting Nebraska’s efforts to support the crypto industry while safeguarding residents from criminal exploitation. He noted that establishing guardrails is essential to fostering a robust yet secure environment for cryptocurrency use. To ensure compliance and monitor activities, Nebraska will form a dedicated team to oversee crypto ATM operations, track fraudulent transactions, and uphold consumer protection and industry integrity.
Similarly, last month, Illinois Senator Dick Durbin introduced The Crypto ATM Fraud Prevention Act, aimed at setting transaction limits and bolstering consumer protections. Speaking on the Senate floor on February 25, Senator Durbin warned of a growing trend of scams targeting unsuspecting users, particularly senior citizens, and stressed the need for stronger safeguards.
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