The proposed bill aims to establish regulations to prevent fraud associated with virtual currency kiosks in South Dakota. It introduces definitions for key terms such as "Charges," "Distributed ledgers," "Licensee," "User," "Virtual currency," and "Virtual currency kiosk." The bill mandates that all operators of virtual currency kiosks must be licensed and outlines specific requirements for licensees, including the need to provide detailed reports on transactions, complaints, and suspicious activities. Additionally, it requires licensees to issue receipts for transactions, provide disclosures about the risks of virtual currency, and establish customer service protocols.

Furthermore, the bill sets forth consumer protections, including a full refund policy for users who fall victim to fraudulent transactions, transaction limits, and restrictions on fees charged for transactions. It also emphasizes the importance of user identity verification before transactions, mandates the implementation of anti-fraud policies, and requires training for kiosk staff on recognizing potential fraud. The legislation aims to enhance transparency and accountability in the operation of virtual currency kiosks while safeguarding users from fraudulent activities.