The proposed "Virtual Currency Kiosk Fraud Prevention Act" aims to establish a regulatory framework for virtual currency kiosks in Idaho by adding a new chapter to Title 28 of the Idaho Code. This legislation introduces licensing requirements for operators of virtual currency kiosks, mandates comprehensive reporting and disclosure obligations, and sets forth customer service standards. Operators must provide clear information regarding transaction fees, risks associated with virtual currency, and contact details for assistance. Additionally, the act outlines specific measures to prevent fraudulent activities and money laundering, including transaction limits for new customers and the use of blockchain analytics to detect suspicious transactions.

The bill also includes provisions for transaction receipts, mandatory disclosures to users, and a structured process for issuing refunds in cases of fraud. Violations of the act are classified as unfair and deceptive practices, subjecting operators to penalties, including potential revocation of their money transmitter licenses and misdemeanor charges for willful violations. Furthermore, the act facilitates information-sharing among various state agencies to enhance consumer protection, particularly for potentially vulnerable older adults. The act is set to take effect on July 1, 2026, following the declaration of an emergency.