Bill > HB5469

This bill, titled the "Virtual Currency Kiosk Consumer Protection Act," establishes regulations for operators of virtual currency kiosks, which are machines that allow people to exchange traditional money (fiat currency) for digital currencies like Bitcoin, or vice versa. Key provisions require these operators to clearly disclose significant risks associated with virtual currency, such as its lack of government backing, the irreversibility of transactions, and its price volatility, before any initial transaction. Operators must also provide clear terms and conditions, including details on liability for unauthorized transactions and privacy policies. A mandatory warning must be presented to users, cautioning them against scams and confirming their understanding that cryptocurrency transactions are final and non-refundable. After each transaction, a detailed receipt must be provided, including operator contact information, transaction specifics, fees, and exchange rates. The bill mandates the use of blockchain analytics, a technology that uses data from digital ledgers to identify potentially fraudulent virtual currency addresses, to help prevent transactions with known illicit wallets. Operators must also offer live, toll-free customer service during specified hours and display the number prominently. Furthermore, they are required to implement written antifraud and enhanced due diligence policies, designate a qualified compliance officer and a consumer protection officer, and report the locations of their kiosks to the state's Department of Insurance and Financial Services. Importantly, local governments cannot enact ordinances that restrict the use of these kiosks. The Department can request evidence of compliance, and while most information gathered is confidential, certain details like operator names and addresses will be publicly available. Violations of this act can result in civil fines of up to $1,000 per offense.

Government Affairs

https://legislature.mi.gov/Bills/Bill?ObjectName=2026-HB-5469