The proposed bill aims to enhance regulations surrounding virtual currency kiosks in South Dakota to prevent fraud and protect users. It establishes definitions for key terms such as "virtual currency," "licensee," and "user," and mandates that all operators of virtual currency kiosks must be licensed under chapter 51A-17. The bill outlines specific reporting requirements for licensees, including details on virtual currency transactions, user complaints, and suspicious activity reports. Additionally, it requires kiosks to provide users with detailed receipts and disclosures about the risks associated with virtual currency transactions, including a warning about potential fraud.

Furthermore, the bill sets forth various consumer protections, such as a full refund policy for users who fall victim to fraud, daily and monthly transaction limits, and restrictions on the fees that can be charged for transactions. Licensees are also required to implement anti-fraud measures, including identity verification for users and the use of software to detect fraudulent activity. The legislation emphasizes the importance of customer service, mandating live support during specified hours and the establishment of communication channels for law enforcement. Overall, the bill seeks to create a safer environment for users engaging with virtual currency kiosks by imposing stringent operational standards and consumer protections.