TechFlow news — On March 13, according to Decrypt, Nebraska Governor Jim Pillen signed LB609, a bill that will regulate Bitcoin ATMs and other electronic kiosks to protect users from fraud. The legislation, known as the "Controllable Electronic Records Fraud Prevention Act," requires operators to clearly disclose all terms to users, including consumer fraud warnings.
Kelly Lammers, Director of the Nebraska Department of Banking, said: "Nebraska is fully open to legitimate businesses in the cryptocurrency space. But for those attempting to exploit Nebraskans' financial resources using crypto ATMs as a transfer method, we will have dedicated teams monitoring them more closely."
The bill stipulates that users who report fraudulent activity to both the operator and law enforcement within 90 days are entitled to a full refund from the operator. According to data from the U.S. Federal Trade Commission, consumers lost over $110 million in scams related to Bitcoin ATMs in 2023.
In his statement, Governor Pillen emphasized: "Cryptocurrency is an important emerging industry, and we've been working hard to make Nebraska a leader in cryptocurrency. A key part of these efforts is ensuring we have safeguards in place to prevent criminals from exploiting Nebraskans."
