Bill > SB249

This bill establishes regulations for virtual currency kiosks, which are machines that allow people to buy and sell virtual currency, a digital form of money not backed by the government. Operators of these kiosks must obtain a money transmission license, register with the state, and report detailed quarterly and annual information about their transactions, including the number of transactions declined due to suspected illicit activity and any complaints received. The bill mandates clear disclosures to users about the risks of virtual currency, warnings about potential scams, and contact information for reporting fraud. It also requires operators to implement anti-fraud and anti-money laundering policies, use blockchain analytics to detect suspicious activity, verify user identities, and provide training to staff at locations where kiosks are present. Furthermore, the bill mandates refunds for users who are victims of fraud within specific timeframes and sets daily and monthly transaction limits for users, along with a cap on transaction fees. Operators must also provide live customer service and a dedicated communication line for law enforcement. Violating these provisions will be considered an unfair trade practice, and non-compliance can result in penalties, including the seizure of kiosks and forfeiture of fees. The bill also clarifies that these regulations do not prevent municipalities from enacting ordinances with greater protections and defines various terms related to virtual currency and its transactions.