The proposed bill aims to enhance consumer protection for users of virtual currency kiosks in Washington State, addressing the rising incidents of financial fraud associated with virtual currency transactions. The legislation recognizes the increasing prevalence of scams, particularly those involving imposter schemes that persuade individuals to purchase virtual currency, which is often untraceable and irreversible. The bill asserts that its purpose is to safeguard the health, safety, and welfare of residents without imposing a legal duty on the state towards individuals or entities.

Key provisions of the bill include requirements for licensees operating virtual currency kiosks to report their branch locations and authorized delegates to a nationwide licensing system at least 30 days before commencing operations. Additionally, the bill sets a daily transaction limit of $2,000 for customers and caps transaction fees at either $5 or 15% of the transaction value, whichever is greater. Licensees must also provide clear disclosures to consumers regarding potential fraud risks and must issue detailed receipts for transactions, including information such as transaction amounts, fees, and exchange rates. The bill amends existing regulations to ensure compliance and transparency in the operation of virtual currency kiosks.

Statutes affected:
Original Bill: 19.230.150
Engrossed bill: 19.230.150