summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill establishes the "Virtual Currency Kiosk Consumer Protection Act." Under the bill, a virtual currency kiosk means, in part, an electronic terminal of the virtual currency kiosk operator that enables the owner or operator to facilitate the exchange of fiat currency for virtual currency or virtual currency for fiat currency or other virtual currency. A notice is to be displayed on or near a kiosk and state, in a clear and conspicuous manner, that the kiosk is not an automated teller machine dispensing United States dollars. The kiosk operator is to provide numerous disclosures to customers to ensure the customer is aware of the threats and possible outcomes as a result of using a virtual currency kiosk. This includes, among other items, disclosure that virtual currency is not legal tender; notice of the customer's liability for unauthorized virtual currency transactions; and the posting of a notice, at or near the kiosk, of a warning of potential scams that may lead a customer to use a kiosk. A virtual currency kiosk operator is to employ a compliance officer and a consumer protection officer to ensure the kiosk operates as required and that consumers are receiving the required disclosures. The operator is to obtain a license from the New Jersey Department of Banking and Insurance as a money transmitter to operate the kiosk. Additionally, an operator is issue quarterly reports to the Department on the locations of its virtual currency kiosks. The bill stipulates that the location of a virtual currency kiosk is to only be in a secure area, including, but not limited to, banks with functioning security cameras and lighting.
AI Summary
This bill, known as the "Virtual Currency Kiosk Consumer Protection Act," establishes new regulations for virtual currency kiosks, which are electronic terminals that allow users to exchange traditional money (fiat currency) for digital currencies like Bitcoin (virtual currency) or vice versa. Key provisions include requiring these kiosks to clearly state they are not ATMs dispensing U.S. dollars, and operators must provide customers with extensive disclosures about the risks of virtual currency, such as its lack of government backing, the potential for irreversible transactions, and the possibility of total loss of value. Operators must also inform customers about their liability for unauthorized transactions and warn them about potential scams that might lead them to use a kiosk. To ensure compliance, kiosk operators are mandated to hire a full-time compliance officer and a consumer protection officer, and they must obtain a license from the New Jersey Department of Banking and Insurance as a money transmitter, which involves adhering to regulations like the Bank Secrecy Act and the USA PATRIOT Act. Furthermore, operators must submit quarterly reports detailing the locations of their kiosks, and these kiosks can only be situated in secure areas with functioning security cameras and lighting, such as within banks. The bill also requires operators to use blockchain analytics to help prevent transactions with known fraudulent digital wallet addresses and to maintain anti-fraud and enhanced due diligence policies, particularly identifying customers at risk due to age or mental capacity.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced, Referred to Assembly Science, Innovation and Technology Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A3386 |
| BillText | https://pub.njleg.gov/Bills/2026/A3500/3386_I1.HTM |
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