Nebraska has become the latest state to take action against cryptocurrency scams, with Governor Jim Pillen signing a new law aimed at protecting users of Bitcoin ATMs and other electronic kiosks. The Controllable Electronic Record Fraud Prevention Act, also known as LB609, was signed into law on Wednesday.
The law requires electronic kiosk operators to clearly disclose terms and warnings about potential consumer fraud to users. This includes distinct signs of fraudulent behavior, such as suspicious activity or unexplained transactions.
The regulations will also provide a clear pathway for victims of fraudulent activity to receive full refunds from the operator and law enforcement agencies. The Nebraska Department of Banking Director Kelly Lammers stated that the state is “open for business” in the cryptocurrency space, but emphasized that those exploiting citizens’ financial resources using crypto ATMs will be closely monitored.
This move follows concerns over rising instances of fraud related to cryptocurrency kiosks, with data from the Federal Trade Commission (FTC) showing consumers lost over $110 million in scams in 2023. The law aims to provide a level of protection for users and promote a safe and secure environment for the growing industry.
Other states, including Illinois, have also introduced similar legislation to regulate crypto ATMs nationwide. Nebraska’s move is seen as an important step towards establishing clear guidelines for the industry.
Source: https://decrypt.co/309700/nebraska-enatcs-bitcoin-crypto-atm-law