The Virtual Currency Kiosk Consumer Protection Act aims to establish a regulatory framework for virtual currency kiosks in New Jersey, ensuring consumer protection and transparency in their operations. The bill defines a virtual currency kiosk as an electronic terminal that facilitates the exchange of fiat currency for virtual currency and vice versa. It mandates that kiosk operators provide clear disclosures to customers regarding the risks associated with virtual currency transactions, including the fact that virtual currency is not legal tender and is not insured by federal protections. Additionally, operators must display warnings about potential scams and ensure customers are informed of their liabilities for unauthorized transactions.

To enforce compliance, the bill requires virtual currency kiosk operators to employ a compliance officer and a consumer protection officer, both of whom must be full-time employees and not major stakeholders in the company. Operators are also required to obtain a money transmitter license from the New Jersey Department of Banking and Insurance and submit quarterly reports detailing the locations of their kiosks. The act emphasizes the importance of consumer safety and aims to create a standardized approach to the operation of virtual currency kiosks, thereby fostering a secure environment for users engaging in virtual currency transactions.