The Cryptocurrency Kiosk Fraud Prevention Act aims to enhance consumer protection and transparency in the operation of cryptocurrency kiosks in Alabama. The bill mandates that kiosk operators provide clear disclosures regarding transaction terms, including the dollar amount of cryptocurrency, applicable fees, and the exchange rate. Operators are also required to display warnings about potential fraud, issue detailed receipts for transactions, and implement identification verification processes for consumers. Additionally, the bill introduces specific protections for consumers aged 60 and older, establishes civil and criminal penalties for non-compliance, and sets transaction limits based on consumer status (new or existing). New legal language added to the Code of Alabama includes definitions for key terms related to cryptocurrency and outlines the obligations of kiosk operators, with no deletions from current law noted.

Further provisions of the bill include the requirement for operators to provide live, toll-free consumer service, prominently display the service number on kiosks, and report fraud-related calls to the commission. Operators must also maintain a dedicated communication line for government agencies and comply with federal reporting requirements under the Bank Secrecy Act and the USA PATRIOT Act. The bill prohibits operators from sharing kiosks with financial institutions and from facilitating transactions involving privacy coins. It also mandates refunds for consumers fraudulently induced into transactions, contingent upon timely reporting to law enforcement and the commission. The commission is empowered to assess civil penalties for violations, while ensuring that these actions do not preempt any existing criminal or civil liabilities under state law. The act is set to take effect on October 1, 2026.

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