This bill establishes new regulations for virtual-currency kiosks in North Dakota, introducing key definitions such as "virtual-currency kiosk" and "virtual-currency kiosk operator." It requires kiosk operators to be licensed as money transmitters and to comply with operational standards, including kiosk placement in accessible areas and adherence to security measures. Operators must also submit quarterly reports detailing kiosk locations. To enhance consumer protection, the bill mandates clear disclosures regarding service terms and risks associated with virtual currency transactions, as well as the use of blockchain analytics software to prevent fraud. Additionally, a compliance officer must be appointed to oversee adherence to these regulations.

The legislation further emphasizes consumer safety by requiring operators to maintain a written enhanced due diligence policy approved by their board of directors and to designate a full-time consumer protection officer with limited ownership in the business. It establishes a daily transaction limit of two thousand dollars for the first thirty days of transactions with a single customer, applicable to the first five transactions. Operators are also required to provide live customer service during specified hours and display a toll-free customer service number on their kiosks. These measures aim to foster consumer trust and safety in the evolving landscape of virtual currency transactions.

Statutes affected:
Prepared by the Legislative Council staff for Representative Koppelman: 13-09.1-44
FIRST ENGROSSMENT: 13-09.1-44