Nebraska legislators are set to evaluate new regulations for cryptocurrency kiosks amid growing concerns over consumer fraud and scams. The state's Banking, Commerce and Insurance Committee will review proposed legislation LB609 on February 3rd, which aims to establish stricter oversight of digital currency ATMs.
The bill, introduced by State Senator Eliot Bostar, proposes several key measures to protect consumers, including:
- Mandatory licensing for kiosk operators
- Daily transaction limits
- Required fraud warning notices
- Transaction receipt requirements
- Fee restrictions
"Cryptocurrency kiosks are relatively new and remain largely unregulated at the state level compared to traditional financial institutions," said Jina Ragland from AARP Nebraska, which supports the legislation. The organization points to concerning FBI data showing over $189 million lost to cryptocurrency kiosk scams in 2023.
The impact on Nebraska has been substantial, with state residents reporting $14.6 million in digital currency scam losses last year. Older adults appear particularly vulnerable, with individuals over 60 accounting for more than 65% of reported losses nationwide.
The upcoming hearing will feature testimony from multiple stakeholders, including:
- Nebraska Attorney General's Office
- Better Business Bureau
- Nebraska Sheriff's Association
- Lincoln Police Department
- Local consumers affected by scams
The proposed regulations aim to bring cryptocurrency kiosks under similar oversight as traditional financial services while helping prevent criminal exploitation of these increasingly common machines.
Law enforcement officials note that actual losses may exceed reported figures, as many victims hesitate to come forward about cryptocurrency scams. The new legislation represents one of the first major state-level attempts to regulate digital currency ATMs and protect consumers from related fraud.