The proposed bill, titled the "Virtual Currency Kiosk Consumer Protection Act," aims to regulate virtual currency kiosk operators in Michigan by establishing clear guidelines for their operations and consumer protections. It defines key terms related to virtual currency, such as "blockchain," "virtual currency kiosk," and "virtual wallet," and mandates that operators disclose material risks associated with virtual currency transactions. Operators are required to provide clear and conspicuous information regarding the nature of virtual currency, including its lack of legal tender status, potential for irreversible transactions, and the risks of fraud and cyber-attacks. Additionally, operators must offer live customer service, maintain antifraud policies, and designate compliance and consumer protection officers.

The bill also stipulates that virtual currency kiosk operators must submit quarterly reports detailing the locations of their kiosks and comply with requests for evidence of adherence to the act. Local governments are prohibited from enacting ordinances that restrict the use of virtual currency kiosks. Violations of the act can result in civil fines of up to $1,000 per incident. Overall, the legislation seeks to enhance consumer protection and ensure transparency in the rapidly evolving landscape of virtual currency transactions.