Nebraska is taking decisive action against cryptocurrency ATM fraud with extensive new legislation signed into law by Governor Jim Pillen. The Controllable Electronic Record Fraud Prevention Act, signed on March 12, 2025, introduces thorough regulations for cryptocurrency kiosks across the state, responding to alarming fraud statistics that saw Nebraskans lose $14.6 million to digital currency scams in 2023.
The new law requires crypto ATM operators to obtain licenses under Nebraska’s Money Transmitters Act and submit to oversight from the Department of Banking and Finance. Operators must now provide quarterly reports detailing kiosk locations and transaction data, while appointing compliance officers to enforce fraud prevention measures. The legislation’s introduction by Senator Eliot Bostar showcases its bipartisan foundation. Citizens can track the bill’s progress using the legislature’s Advanced Keyword Search feature on the official website.
To protect consumers, particularly seniors who accounted for 65% of crypto ATM fraud victims nationwide, the legislation implements strict transaction limits. New users face a $2,000 daily cap, while existing customers can transact up to $5,000 daily. Fees are now capped at 18% of transaction value, and kiosks must prominently display fraud warnings and transaction terms. The state’s approach aligns with emerging global compliance standards for cryptocurrency operations.
The law includes robust consumer protection measures, offering full refunds, including fees, to new customers who report fraud within 90 days. A dedicated monitoring team will track suspicious activities, with state agencies empowered to investigate complaints and enforce compliance.
This legislative move comes in response to FBI data showing over 5,500 complaints involving crypto kiosks nationwide in 2023, with losses exceeding $189 million. Nebraska’s 239 reported digital currency scam complaints in 2023 highlighted the urgent need for stronger regulations.
While cracking down on fraud, the legislation also positions Nebraska as a forward-thinking crypto hub in the Midwest. By balancing innovation with consumer protection, the state aims to attract blockchain and cryptocurrency businesses while safeguarding its residents.
The bipartisan support for this legislation demonstrates Nebraska’s commitment to fostering a secure and thriving cryptocurrency ecosystem while protecting vulnerable populations from increasingly sophisticated digital fraud schemes.
