The Virtual Currency Kiosk Consumer Protection Act establishes a regulatory framework for virtual currency kiosk operators in Kansas, focusing on consumer protection and transparency. The bill mandates operators to provide clear disclosures about the risks of virtual currency transactions, including their non-legal tender status and the potential for irreversible transactions. Key provisions include a new warning about consumer fraud that must be prominently displayed, limits on transaction amounts (reducing the maximum initial transaction from $2,000 to $1,000), and a requirement for operators to verify user identities. Additionally, operators must implement fraud detection measures, provide live customer service, and maintain detailed transaction records.

The bill amends the Kansas money transmission act to enhance consumer protections, allowing individuals to request full refunds of their initial transactions within a specified holding period, barring cases involving criminal activity. It also establishes a refund policy for fraudulent transactions reported within 30 days, requiring operators to issue refunds within 10 business days unless fraud is suspected. The attorney general's office and law enforcement are granted authority to investigate fraudulent activities, and the bill clarifies definitions related to money transmission while ensuring that third-party service providers operate under written agreements. Furthermore, confidentiality provisions regarding information from applicants and licensees are modified, and outdated sections of the law are repealed, with amendments taking effect immediately upon publication.

Statutes affected:
As introduced: 9-555, 9-556, 9-558, 9-572, 9-589
As Amended by House Committee: 9-555, 9-556, 9-558, 9-572, 9-589
As Amended by Senate Committee: 9-555, 9-556, 9-558, 9-572, 9-589