The bill amends Section 19-14.3-1.1 of the General Laws in Chapter 19-14.3, titled "Currency Transmissions," to introduce new definitions and regulations for virtual currency kiosk operators. Key insertions include definitions for "Blockchain analytics," "Blockchain analytics software," "Virtual currency kiosk," "Virtual currency wallet," and other relevant terms that clarify the responsibilities of operators in the virtual currency sector. The bill mandates that these operators must be licensed as money transmitters and register their kiosks with the Department of Business Regulation (DBR) prior to operation. Additionally, operators are required to submit quarterly reports on their kiosks' locations and operational status, which must include the operator's legal name, any fictitious or trade name, physical address of each kiosk, start and end dates of operation, and associated virtual currency addresses.

To enhance consumer protection, the bill establishes specific procedures for disclosures and refunds. It requires virtual currency kiosk operators to disclose all relevant terms and conditions associated with their services in a clear and conspicuous manner. Operators must provide an acknowledgment of receipt of disclosures and include a warning about the risks of fraudulent transactions. New customers can request full refunds for fraudulent transactions made within thirty days, provided they report the fraud within ninety days. Existing customers can receive refunds on transaction fees under similar conditions.

The bill also sets daily transaction limits of $2,000 for new customers and $5,000 for existing customers, applicable to a single customer regardless of the number of kiosks used. Furthermore, it requires operators to use blockchain analytics software to prevent fraudulent activity and to establish a written anti-fraud policy. Each operator must designate a compliance officer and provide live customer service during specified hours, with a toll-free customer service number displayed on their kiosks. The act is set to take effect upon passage, aiming to regulate virtual currency kiosk operations and mitigate fraud.

Statutes affected:
5121: 19-14.3-1.1
5121  SUB A: 19-14.3-1.1