Bill > S804

This bill provides comprehensive regulations for virtual currency kiosks operating in Massachusetts, establishing a detailed framework for their operation, customer protection, and compliance. The bill defines key terms like virtual currency, blockchain, and digital wallet, and mandates that virtual currency kiosk operators must obtain a money transmitter license. Operators are required to implement robust consumer protection measures, including disclosing significant risks associated with virtual currency transactions, such as price volatility, lack of government backing, and potential for fraud. The bill requires operators to provide clear transaction receipts, maintain live customer service, use blockchain analytics to prevent fraudulent transactions, and develop written anti-fraud and enhanced due diligence policies. Additionally, operators must designate full-time compliance and consumer protection officers who cannot own more than 20% of the company. They must submit quarterly reports on kiosk locations and comply with federal laws like the Bank Secrecy Act and PATRIOT Act. Operators must also provide customers with warnings about potential scams and irreversible transactions before completing any virtual currency exchange, with the overall goal of protecting consumers and establishing transparent, accountable virtual currency kiosk operations in the state.

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https://malegislature.gov/Bills/194/S804