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," "virtual currency kiosk," and "virtual currency wallet," which clarify the responsibilities of operators in the virtual currency sector. The bill requires these operators to be licensed as money transmitters and to register their kiosks with the Department of Business Regulation (DBR) prior to operation. Additionally, operators must submit quarterly reports on the locations and operational status of their kiosks, including details such as 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 disclosure requirements for virtual currency kiosk operators, including warnings about the risks associated with virtual currency transactions, the operator's liability, and the nature of virtual currency. It mandates that operators issue refunds to customers who report fraud within designated timeframes, with new customers eligible for refunds on all transactions made within a 30-day period, while existing customers can receive refunds for transaction fees. The bill also 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, aiming to regulate practices and prevent fraud in the virtual currency space. The act would take effect upon passage.

Statutes affected:
16: 19-14.3-1.1
16  SUB A: 19-14.3-1.1