Bill > A5384

This bill establishes the "Virtual Currency Kiosk Consumer Protection Act" to create comprehensive regulations for virtual currency kiosks in New Jersey. The legislation mandates that virtual currency kiosk operators provide clear disclosures about the risks of virtual currency, including its lack of government backing, potential for fraud, price volatility, and irreversible transactions. Operators must implement robust consumer protection measures, such as using blockchain analytics to prevent fraudulent transactions, maintaining an anti-fraud policy, and establishing enhanced due diligence procedures to identify customers at risk of fraud. The bill requires operators to provide detailed transaction receipts, offer live customer service, and designate full-time compliance and consumer protection officers. Additionally, virtual currency kiosk operators must now be licensed as money transmitters, submit quarterly location reports, and ensure kiosks are placed in secure areas with proper security cameras and lighting. The law aims to protect consumers by standardizing notices, mandating consumer protections, and ensuring that innovative virtual currency technologies are implemented with appropriate safeguards. The bill will take effect on the first day of the 13th month following its enactment, giving operators time to prepare for the new requirements.

Business and Industry

https://www.njleg.state.nj.us/bill-search/2024/A5384