summary
Introduced
03/24/2025
03/24/2025
In Committee
03/24/2025
03/24/2025
Crossed Over
Passed
Dead
Introduced Session
2024-2025 Regular Session
Bill Summary
This bill establishes the "Virtual Currency Kiosk Consumer Protection Act." Under the bill, a virtual currency kiosk means, in part, an electronic terminal of the virtual currency kiosk operator that enables the owner or operator to facilitate the exchange of fiat currency for virtual currency or virtual currency for fiat currency or other virtual currency. The kiosk operator is to provide numerous disclosures to customers to ensure the customer is aware of the threats and possible outcomes as a result of using a virtual currency kiosk. This includes, among other items, disclosure that virtual currency is not legal tender; notice of the customer's liability for unauthorized virtual currency transactions; and the posting of a notice, at or near the kiosk, of a warning of potential scams that may lead a customer to use a kiosk. A virtual currency kiosk operator is to employ a compliance officer and a consumer protection officer to ensure the kiosk operates as required and that consumers are receiving the required disclosures. The operator is to obtain a license from the New Jersey Department of Banking and Insurance as a money transmitter to operate the kiosk. Additionally, an operator is issue quarterly reports to the Department on the locations of its virtual currency kiosks.
AI Summary
This bill establishes the "Virtual Currency Kiosk Consumer Protection Act," which creates comprehensive regulations for virtual currency kiosks (electronic terminals that facilitate exchanges of traditional and digital currencies) in New Jersey. The bill requires virtual currency kiosk operators to provide extensive consumer protections, including clear disclosures about the risks of virtual currency, such as its lack of legal tender status, potential for fraud, price volatility, and absence of government backing. Operators must implement blockchain analytics to prevent transactions to fraudulent digital wallets, maintain live customer service, develop anti-fraud policies, and designate both a compliance officer and a consumer protection officer. Additionally, kiosk operators must obtain a money transmitter license from the New Jersey Department of Banking and Insurance, submit quarterly reports about kiosk locations, and provide customers with detailed transaction receipts. The bill aims to standardize consumer protections in the virtual currency kiosk industry, ensuring that customers are fully informed about the potential risks and complexities of digital currency transactions while supporting innovative business practices.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 03/24/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2024/S4288 |
| BillText | https://pub.njleg.gov/Bills/2024/S4500/4288_I1.HTM |
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