This bill proposes significant updates to the Arizona Revised Statutes regarding cryptocurrency kiosk operations. It introduces a new licensing requirement for cryptocurrency kiosk operators, mandating that they obtain a license to conduct virtual business or advertise such services starting January 1, 2026. The bill outlines specific operational requirements, including the obligation to provide a list of kiosks owned or managed, notify the department of any changes related to the business, and maintain detailed records of transactions for at least five years. Additionally, it establishes consumer protection measures, such as mandatory disclosures about the risks associated with virtual currency transactions and the requirement for operators to provide live customer service 24/7.

The bill also includes provisions for enhanced fraud prevention, requiring operators to use blockchain analytics and tracing software, designate a compliance officer, and implement an anti-fraud policy. It sets a transaction limit of $1,000 per day and mandates that operators provide clear and conspicuous warnings about the irreversibility of transactions and the potential for loss due to fraud. Overall, the proposed legislation aims to regulate the cryptocurrency kiosk industry more effectively, ensuring consumer protection and compliance with state and federal laws.

Statutes affected:
Introduced Version: 6-1236