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 clarify existing ones related to virtual currency operations. Key insertions include definitions for terms such as "Blockchain analytics," "New customer," and "Virtual currency kiosk," while establishing that a "New customer" is someone who has not transacted with a kiosk operator for 30 days after their first transaction. The bill also introduces the term "Virtual currency kiosk transaction," which refers to transactions conducted electronically at these kiosks. Additionally, it sets forth licensing and registration requirements for virtual currency kiosk operators, mandating that they obtain a money transmitter license and register their kiosks with the Department of Business Regulation (DBR), along with submitting quarterly reports on kiosk locations.

To enhance consumer protection, the bill requires virtual currency kiosk operators to provide detailed disclosures about their kiosks, including physical addresses and operational dates, as well as a clear warning about the risks associated with virtual currency transactions. Operators must also issue physical receipts for transactions and utilize blockchain analytics software to prevent fraud. The legislation establishes a refund policy for new customers within 30 days of transactions and allows existing customers to request refunds for transaction fees under certain conditions. Furthermore, it sets a daily transaction limit of $1,000 and caps fees at $5 or 3% of the transaction amount. Operators are required to provide live customer service during specified hours and display a toll-free customer service number, aiming to improve transparency and reduce fraud in the virtual currency market. The act will take effect upon passage.

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