Nebraska Enacts Law to Protect Bitcoin ATM Users

# Nebraska Governor Signs Bill to Protect Bitcoin ATM and Kiosk Users Nebraska Governor Jim Pillen signed into law Bill LB609, aimed at protecting users of Bitcoin ATMs and electronic kiosks, Decrypt reported on Wednesday. The legislation, named the 'Controllable Electronic Record Fraud Prevention Act,' introduces regulations to warn against potential fraudulent activities and prevent consumer harm. Although the bill does not specifically focus on cryptocurrency terminology, Governor Pillen's office issued a statement on Thursday highlighting the bill as a cornerstone of Nebraska’s efforts to embrace cryptocurrency. "Cryptocurrency is a critical emerging industry, and we are working hard to position Nebraska as a leading region in this space," Pillen stated. "A key part of these efforts is putting in place safeguards to ensure that criminals cannot exploit Nebraskans." # Key Provisions of the Fraud Prevention Act One of the regulations in the Fraud Prevention Act mandates that electronic kiosk operators must clearly and prominently disclose all terms of use to consumers. Additionally, the kiosks must include warnings about signs of consumer fraud. The bill also establishes clear guidelines for addressing fraudulent activities. For instance, new or existing customers who report fraudulent activities to operators and law enforcement within 90 days are entitled to a full refund from the operator. Kelly Lammers, Director of the Nebraska Department of Banking and Finance, stated, "Nebraska is open for cryptocurrency business, and legitimate business operators will be welcomed here." He added, "However, a team will soon be assembled to closely monitor those who attempt to exploit our citizens via cryptocurrency ATMs." # Rising Fraud in Bitcoin ATMs The popularity of Bitcoin ATMs and cryptocurrency kiosks has surged, accompanied by a rise in related fraudulent activities. According to NBC News, the Federal Trade Commission (FTC) reported that consumers lost over $110 million to Bitcoin ATM-related scams in 2023. In a similar move, Illinois State Senator Dick Durbin introduced a bill in late February aimed at regulating Bitcoin ATMs. Data from Coin ATM Radar indicates that approximately 30,000 Bitcoin and cryptocurrency ATMs are currently operating across the United States. Nebraska, for the time being, is not considering legislation to create Bitcoin or cryptocurrency reserves. In contrast, former President Donald Trump signed an executive order last week to start a national strategic Bitcoin reserve and separate digital asset hoard.