The Cryptocurrency Kiosk Fraud Prevention Act aims to enhance consumer protection in cryptocurrency transactions conducted through kiosks in Alabama by introducing new regulations for operators. The bill adds Section 8-7A-28 to the Code of Alabama 1975, requiring kiosk operators to provide clear disclosures about transaction terms, including the dollar amount of cryptocurrency, applicable fees, and exchange rates. Operators must also display warnings about potential fraud, issue detailed receipts, and utilize blockchain analytics to prevent fraudulent transactions. New consumers will face transaction limits of $1,000 per day and $10,000 per month, while existing consumers are limited to $10,500 per day. Enhanced protections are mandated for consumers aged 60 and older, and operators are required to maintain a toll-free consumer service line.

Additionally, the bill includes provisions for operators to establish a dedicated communication line for law enforcement and regulatory agencies, report consumer fraud calls, and issue refunds to consumers who have been fraudulently induced into transactions. Operators are prohibited from sharing kiosks with financial institutions and from using misleading signage that suggests affiliation with such institutions. The bill also enforces compliance with federal reporting requirements and bans the buying, selling, or sending of privacy coins through kiosks. The commission is empowered to impose civil penalties for violations, while ensuring that these actions do not interfere with existing criminal or civil liabilities under state laws. The act is set to take effect on October 1, 2026.

Statutes affected:
Introduced: 8-7A-28
Engrossed: 8-7A-28
Enrolled: 8-7A-28