Bill > HB648

This bill establishes regulations for digital asset kiosks, which are electronic terminals that facilitate the exchange of digital assets (cryptocurrencies like Bitcoin) for fiat currency or other digital assets. It requires any person who owns, operates, or facilitates these kiosks to register as a money transmitter, meaning they must obtain a license to conduct these financial activities. The bill mandates extensive disclosures to customers about the risks associated with digital assets, including that they are not government-insured and that transactions are irreversible. It also outlines specific terms and conditions that must be provided, such as liability for unauthorized transactions and procedures for stop payments. For each transaction, customers must receive clear information about the amount, fees, exchange rates, and a warning that the transaction may not be undone. The bill requires kiosk operators to obtain customer acknowledgment of these disclosures and to provide a detailed receipt upon transaction completion. To protect consumers, especially new ones, a seventy-two-hour hold is placed on transactions initiated by new customers, during which they can cancel the transaction. Transaction limits are set at $2,500 for new customers and $10,500 for existing customers per day, with these limits to be adjusted annually for inflation. The bill also includes provisions for refunding transaction fees for fraudulent transactions if reported promptly and requires identity verification for transactions of $1,000 or more, with specific procedures for customers aged sixty and older to prevent fraud. Finally, it mandates the appointment of a chief compliance officer and the use of full-time employees for compliance responsibilities.

Business and Industry

https://www.legislature.ohio.gov/legislation/136/hb648