This bill proposes significant updates to the Arizona Revised Statutes regarding cryptocurrency kiosks by introducing new licensing requirements and operational standards. Under the new provisions, individuals wishing to operate a cryptocurrency kiosk must obtain a license from the department by January 1, 2027, and submit a detailed application, including background checks and financial audits. The bill outlines strict criteria for license denial based on criminal convictions related to fraud and financial crimes. Additionally, it mandates comprehensive verification processes for transactions, including identity checks and fraud-screening measures, while prohibiting anonymous transactions and requiring operators to maintain extensive records and surveillance.

Furthermore, the bill establishes civil penalties for non-compliance, including fines for operating without a license and failing to implement required surveillance. It also introduces criminal penalties for operators who do not report suspected fraud or who disable surveillance equipment. The legislation creates a Digital Asset Oversight Fund to manage collected penalties and appropriates $4 million from the state general fund to support the implementation of these new regulations. Overall, the bill aims to enhance oversight and security in the cryptocurrency kiosk sector while ensuring consumer protection.

Statutes affected:
Introduced Version: 6-1237, 6-1237.01