Nebraska’s New Crypto ATM Regulations: A Detailed Look at Fraud Prevention Measures

Introduction: A Legislative Response to Crypto ATM Fraud

On March 12, 2025, Nebraska Governor Jim Pillen signed the Controllable Electronic Record Fraud Prevention Act into law, marking a significant step in regulating cryptocurrency automated teller machines (ATMs). Originating from Legislative Bill 609, introduced by Senator Eliot Bostar on January 22, 2025, this legislation responds to a growing wave of fraud linked to these kiosks. According to the Federal Trade Commission (FTC), losses from crypto ATM scams nationwide exceeded $110 million in 2023 alone, with Nebraska reporting over $1.2 million in such losses between 2021 and 2024 (FTC Consumer Sentinel Network, 2024). For Nebraskans, this law promises heightened security and transparency, addressing concerns about the unregulated proliferation of crypto ATMs — devices that allow users to buy or sell digital currencies like Bitcoin using cash or cards. With approximately 450 crypto ATMs currently operating across the state (Coin ATM Radar, March 2025), the need for oversight has become undeniable.

This article explores the intricacies of Nebraska’s new regulations, breaking down each component — from licensing to transaction limits and enforcement mechanisms — while situating them within a broader national context. Readers will gain a comprehensive understanding of how these changes affect operators, users, and the state’s approach to balancing innovation with consumer protection.

Licensing and Approval: Raising the Bar for Operators

Under the new law, any company operating a crypto ATM in Nebraska must now obtain a license under the state’s Money Transmitters Act, a framework originally designed for traditional financial entities like Western Union. This process, overseen by the Nebraska Department of Banking and Finance, requires operators to submit detailed applications, including proof of financial stability — such as a minimum net worth of $100,000 — and a $50,000 surety bond (Nebraska Revised Statutes, Chapter 8, 2025 update). Additionally, operators must secure explicit approval for each machine’s location, a step that could take 30–60 days per application based on current departmental processing times.

For users, this means fewer fly-by-night operators. Previously, anyone could install a crypto ATM with minimal oversight, leading to instances where machines were placed in high-traffic areas like gas stations or convenience stores without vetting. Now, the state aims to ensure that only legitimate businesses — those capable of maintaining compliance and absorbing potential liabilities — can operate. Industry data suggests this could reduce the number of ATMs by 15–20% within the first year, as smaller operators may lack the resources to meet these standards (Crypto ATM Operators Association, 2025 estimate).

Transaction Limits: Balancing Accessibility and Security

The legislation imposes strict daily transaction caps to curb large-scale fraud. New users — defined as those registering with an operator for the first time — are limited to $2,000 per day, while existing customers face a $5,000 ceiling. These thresholds align with national trends: the average crypto ATM scam in 2024 involved a loss of $3,800 per victim (FTC, 2024), suggesting Nebraska’s limits could deter scammers seeking bigger payouts. For context, a single Bitcoin transaction at current prices (approximately $85,000 per BTC as of March 17, 2025) would far exceed these caps, pushing users toward exchanges for larger trades.

Additionally, operators can charge fees up to 18% per transaction — a cap that reflects a compromise between profitability and affordability. In 2024, Nebraska crypto ATM fees averaged 12–15% (Coin ATM Radar), compared to 5–10% on online exchanges like Coinbase. While this ceiling prevents egregious gouging, it still positions ATMs as a pricier option, potentially encouraging users to weigh convenience against cost. For a $500 transaction, an 18% fee translates to $90 — significant for casual users but a deterrent to scammers laundering larger sums.

Anti-Fraud Measures: Transparency and Accountability at the Forefront

To protect users, the law mandates prominent scam warnings on all crypto ATMs. These must detail common tactics — like fake tech support calls or romance scams — where victims are tricked into depositing cash at ATMs. The FTC reported that 68% of crypto ATM fraud victims in 2023 were unaware of such risks until too late, underscoring the need for education at the point of use. Operators must also appoint a compliance officer, a role requiring at least 40 hours of annual training on anti-money laundering (AML) and fraud detection protocols, per federal guidelines adopted by Nebraska (31 CFR § 1022.210, 2025).

For users reporting fraud, the law offers robust recourse. New customers have a 90-day window to claim full refunds, including fees, if they fall victim to scams — potentially covering up to $2,090 per incident ($2,000 transaction + 18% fee). Existing users can recover fees (up to $900 on a $5,000 transaction) but not the principal, reflecting a tiered approach to liability. This refund mechanism, processed within 15 business days of a verified claim, aims to restore trust in a technology that saw a 300% increase in fraud complaints in Nebraska from 2022 to 2024 (Nebraska Attorney General’s Office, 2025).

State Leadership and Enforcement: A Proactive Stance

Governor Pillen framed the law as a dual-purpose effort: fostering a crypto-friendly environment while shielding residents from exploitation. Nebraska’s crypto ATM density — roughly 1 machine per 6,000 residents — lags behind states like California (1 per 2,500), but fraud rates have spiked faster here, with a 45% year-over-year increase in 2024 (Nebraska Department of Banking and Finance). Kelly Lammers, the state’s Banking Director, emphasized that Nebraska welcomes crypto innovation but demands accountability. To enforce this, a new monitoring unit will track ATM activity, leveraging real-time transaction data to flag anomalies — such as a single user hitting the $5,000 cap across multiple machines in a day.

This team, staffed by at least five full-time analysts and equipped with blockchain analytics tools (e.g., Chainalysis), aims to process up to 1,000 transaction reports monthly. Penalties for non-compliance include fines of $5,000 per violation and potential license revocation, signaling a zero-tolerance approach to operators skirting the rules.

National Context: A Growing Regulatory Patchwork

Nebraska’s move mirrors a national push to rein in crypto ATM fraud. Illinois Senator Dick Durbin’s Crypto ATM Fraud Prevention Act, introduced in February 2025, proposes a $1,000 daily limit — stricter than Nebraska’s — alongside mandatory ID verification. Arizona’s House Bill 2387, filed on February 8, 2025, requires operators to maintain a $25,000 bond and caps fees at 15%. North Dakota, meanwhile, banned ATMs outright in rural counties with fewer than 10,000 residents, citing a lack of oversight capacity (North Dakota Legislative Assembly, 2025). Across the U.S., crypto ATMs grew from 33,000 in 2022 to 38,000 in 2025 (Coin ATM Radar), yet fraud losses climbed 50% over the same period, per FTC data.

For Nebraskans, this law positions the state as a middle ground — neither fully embracing nor rejecting the technology. Users elsewhere might note how these varied approaches reflect local priorities: Nebraska’s refund provisions stand out, while Arizona’s lower fee cap could appeal to cost-conscious consumers.

Conclusion: What This Means for Nebraska’s Crypto Ecosystem

The Controllable Electronic Record Fraud Prevention Act reshapes how crypto ATMs function in Nebraska, introducing a framework that prioritizes user safety without stifling access. For the state’s 1.96 million residents, it’s a pragmatic response to a technology that’s both a convenience and a risk. Operators face higher costs — estimated at $10,000 annually per machine for licensing and compliance — while users gain protections that could save millions in fraud losses over time. As enforcement ramps up in 2025, the law’s success will hinge on the state’s ability to adapt to an evolving crypto landscape, where innovation and exploitation often go hand in hand.