Bill > H1089

This bill provides comprehensive regulation for virtual currency kiosk operators in Massachusetts, establishing detailed requirements for their operations, consumer protection, and compliance. The legislation defines key terms like "virtual currency" and "virtual currency kiosk" and mandates that operators must obtain a money transmitter license. Operators must disclose significant risks to customers, including the lack of government backing, potential for irreversible transactions, price volatility, and fraud risks. They are required to use blockchain analytics to prevent transactions to fraudulent digital wallets, provide customer service during specified hours, and maintain robust anti-fraud and compliance policies. Each operator must designate a full-time compliance officer and a consumer protection officer who cannot own more than 20% of the company. Operators must submit quarterly reports on kiosk locations to the Commissioner of Banks and establish written policies for enhanced due diligence, particularly focusing on protecting vulnerable individuals. The bill also ensures that federal laws like the Bank Secrecy Act and PATRIOT Act take precedence in case of any inconsistencies, and requires operators to provide detailed transaction receipts and customer disclosures. Unlicensed operators have 60 days to apply for a money transmitter license and can continue operations while their application is under review.

Business and Industry

https://malegislature.gov/Bills/194/H1089