This bill aims to regulate virtual-currency kiosks in North Dakota by creating new sections in the North Dakota Century Code and amending existing definitions related to virtual currency. Key provisions include the requirement for kiosk operators to be licensed as money transmitters, compliance with money transmitter regulations, and the establishment of security measures for kiosk locations. Additionally, operators must submit quarterly reports detailing the locations of their kiosks and provide clear disclosures to customers regarding the risks and terms associated with virtual currency transactions. The bill also mandates the use of blockchain analytics to detect and prevent fraudulent activities and establishes a daily transaction limit of $2,000 per customer.

Furthermore, the bill outlines the responsibilities of virtual-currency kiosk operators, including the designation of compliance and consumer protection officers, the implementation of an antifraud policy, and the provision of live customer service during specified hours. Operators are required to disclose material risks associated with virtual currency, including the irreversibility of transactions and the lack of government backing. The bill emphasizes consumer protection by mandating clear communication of fees, transaction details, and contact information for reporting fraud, thereby enhancing the regulatory framework surrounding virtual currency transactions in the state.

Statutes affected:
Prepared by the Legislative Council staff for Representative Koppelman: 13-09.1-44
FIRST ENGROSSMENT: 13-09.1-44
Adopted by the Senate Industry and Business Committee: 13-09.1-44
Enrollment: 13-09.1-44