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 mandates that operators clearly disclose all terms and conditions, including fees, exchange rates, and the total transaction value in both U.S. dollars and cryptocurrency, requiring consumer acknowledgment. Kiosks must display prominent warnings about common scams and the irreversible nature of cryptocurrency transactions, which consumers must accept before proceeding. Upon completion, operators must provide detailed receipts, either physical or digital, including contact information, transaction specifics, fees, and refund policies. The bill also requires operators to use blockchain analytics and tracing software to block transactions linked to fraud, imposes daily and monthly transaction limits for new and existing consumers, and mandates identity verification. Enhanced protections are required for consumers aged 60 and older, and operators must provide 24/7 live, U.S.-based customer service. Furthermore, operators must maintain a dedicated communication line with government agencies and provide transaction data upon request. In cases of fraudulent inducement, new consumers are entitled to a full refund, while existing consumers receive a half refund, provided they report the fraud to both the operator and law enforcement within 60 days. Operators are prohibited from affiliating with financial institutions and must comply with federal reporting requirements, including not permitting the trading of privacy coins, which are cryptocurrencies designed for enhanced anonymity. The Alabama Securities Commission is authorized to enforce these provisions and can impose civil penalties for violations.

Business and Industry, Government Affairs

https://alison.legislature.state.al.us/bill-search