Bill > H920

This bill, titled the Virtual Currency Kiosk Consumer Protection Act, establishes new regulations for virtual currency kiosks, which are automated machines that facilitate the exchange of fiat currency (like US dollars) for virtual currency (digital units used as a medium of exchange). Key provisions include requiring virtual currency kiosk operators to provide clear disclosures about material risks, general terms and conditions, and specific warnings about potential scams before any transaction, along with an interactive fraud-screen process that halts transactions if a customer indicates a scam is involved. The bill also prohibits using QR codes or similar scan-based methods for customer login, limiting authentication to manual entry or Commissioner-approved methods, and mandates detailed receipts for all transactions, including fees, exchange rates, and contact information for the Commissioner of Banks. Furthermore, operators must use blockchain analytics software to help prevent sending virtual currency to known fraudulent digital wallet addresses, provide live customer service, maintain written anti-fraud policies, designate full-time compliance and consumer protection officers, and report kiosk locations quarterly. The bill sets daily transaction limits for new and existing customers, outlines refund and cancellation policies, caps aggregate fees and charges at 14% of the transaction's dollar equivalent, and imposes a 48-hour hold on transactions for new customers. Violations are considered unfair trade practices, with potential civil penalties, and facilitating fraudulent transactions is a misdemeanor, while local governments retain authority to regulate kiosks through zoning and land-use controls as long as it doesn't conflict with the act.