The bill amends Section 19-14.3-1.1 of the General Laws in Chapter 19-14.3, introducing new definitions and regulations for virtual currency kiosk operators. Key insertions include definitions for "Blockchain analytics," "Blockchain analytics software," "Virtual currency kiosk," "Virtual currency kiosk operator," "New customer," and "Existing customer," which clarify the responsibilities of these entities. The bill mandates that virtual currency kiosk 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, provide clear disclosures about transaction risks, issue transaction receipts, and implement anti-fraud measures, including the use of blockchain analytics software.

To enhance consumer protection, the bill establishes protocols for refunds to customers who have been fraudulently induced into transactions, allowing new customers to request full refunds for transactions made within 30 days if fraud is reported within 90 days. Existing customers can also receive refunds for transaction fees under similar conditions. The bill sets daily transaction limits of $2,000 for new customers and $5,000 for existing customers, regardless of the number of kiosks used. Furthermore, it requires operators to provide live customer service during specified hours and display a toll-free customer service number on their kiosks. The act will take effect upon passage, aiming to regulate virtual currency kiosk practices and reduce fraud risks.

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