The Virtual Currency Kiosk Consumer Protection Act establishes a regulatory framework for virtual currency kiosk operators in Kansas, focusing on enhancing consumer protection and transparency. The bill mandates operators to provide clear disclosures about the risks of virtual currency transactions, implement fraud detection measures, maintain live customer service, and comply with money transmission licensing requirements. Key provisions include the use of blockchain analytics to prevent fraud, the appointment of a consumer protection officer, and the retention of transaction documentation. Additionally, the bill outlines the process for obtaining refunds, requiring operators to issue refunds within 10 business days under specified conditions.

The bill amends the Kansas money transmission act to improve refund policies for virtual currency transactions, allowing consumers to request full refunds within a specified holding period and under certain conditions related to fraud. It grants the attorney general's office and law enforcement the authority to investigate fraudulent transactions and requires compliance from money transmitters. The legislation also clarifies exemptions from licensing for specific individuals and entities, modifies requirements for licensees regarding key individual appointments, and details permissible investments for licensees. Notably, the bill repeals several existing statutes and removes the previously set effective date of January 1, 2025, allowing the act to take effect immediately upon publication.

Statutes affected:
As introduced: 9-555, 9-556, 9-558, 9-572, 9-589