Bill > S09891

This bill establishes new regulations for "crypto kiosks" (electronic terminals or retail locations where people can exchange money for virtual currency) and "cashier crypto exchanges" (methods of exchanging virtual currency where funds are collected at a retailer). "Operators" are defined as those who own, manage, or engage in virtual currency business activity through these methods in the state. Key provisions include mandatory registration of operators with the state, conspicuous posting of registration numbers and contact information, and significant penalties for non-compliance. The bill mandates clear disclosures to consumers about fees, exchange rates, and risks, including a prominent warning about potential scams before transactions are completed. It also requires operators to provide detailed transaction receipts, offer live customer service during specified hours, and implement a 72-hour hold period for transactions of $1,000 or more to allow for cancellations and refunds, especially in cases of fraud. Furthermore, the bill limits total fees to 3% of the transaction value, prohibits cashier crypto exchanges from transmitting virtual currency directly, requires operators to use blockchain analytics to detect fraud and money laundering, and sets daily and monthly transaction limits. The bill also includes provisions for fraud refunds, requiring full reimbursement for fraudulent transactions within specific timeframes, and establishes legal and beneficial ownership of funds with the consumer in cases of operator non-compliance.