Bill > HB303

This bill, known as the Cryptocurrency Kiosk Fraud Prevention Act, establishes new regulations for cryptocurrency kiosk operators in Alabama to combat fraud. It defines key terms like "cryptocurrency" (digital value for payments or investment), "cryptocurrency kiosk" (a physical terminal for buying/selling cryptocurrency), and "blockchain analytics" (analyzing transaction data on digital ledgers). Operators must clearly disclose all fees, exchange rates, and transaction details to consumers, who must acknowledge these terms. Kiosks will display prominent warnings about common scams, including those involving impersonation, emergencies, or fake winnings, and advise users to contact law enforcement and the operator if they suspect fraud. Upon transaction completion, operators must provide a detailed receipt, either physical or digital, including contact information for complaints and the transaction hash for digital receipts. To prevent illicit activity, operators are required to use "blockchain analytics and tracing software" to block transactions linked to fraud. The bill also imposes transaction limits for new and existing consumers, requiring identity verification for all transactions. Enhanced protections are mandated for consumers aged 60 and older, and operators must provide 24/7 live, U.S.-based customer service. Operators must also maintain a dedicated communication line for government agencies and share data from their analytics software upon request. In cases of fraudulent inducement, new consumers are eligible for a full refund of the transaction and fees, while existing consumers can receive a refund for half the transaction value and fees, provided they report the fraud to the operator and law enforcement within 60 days. Operators are prohibited from sharing kiosks with financial institutions or using misleading signage and must comply with federal reporting requirements. The bill specifically prohibits the buying, selling, or sending of "privacy coins," which are cryptocurrencies designed for increased anonymity. The Alabama Securities Commission is authorized to enforce these provisions and can assess civil penalties for violations, which do not preempt other criminal or civil actions.