SB249

What it does

• Requires kiosk operators to hold a money transmission license before doing any transactions or advertising that they can do so.
• Mandates that operators register each kiosk location with the department and get approval before placing it in the state.
• Orders operators to submit quarterly reports including their legal name, address, start dates for locations, virtual currency addresses used, and the number of transactions declined due to suspicion of illicit activity.
• Demands annual reports showing gross revenue from kiosks, copies of user complaints filed with outside agencies, total transaction numbers and values, refund details, contact info for compliance officers, location counts, and suspicious transaction report totals.
• Requires operators to provide the department with information on any specific transaction upon request, including denied attempts.
• Requires kiosks to display clear warnings in bold stating that the technology can be used for fraud and advising users to stop if contacted by strangers claiming to be friends or officials.
• Mandates disclosures explaining that virtual currency is not backed by the U.S. government, is not legal tender, lacks federal insurance protections, and has fluctuating value.
• Requires kiosks to display contact information for law enforcement and the department so users can report fraud.
• Forces operators to provide paper and electronic receipts after every transaction that include customer service numbers, fraud reporting contacts, transaction details, exchange rates, charges, and refund policies.
• Replaces vague 'software tools' with a specific requirement to use blockchain analytics and tracing software to prevent sending currency to wallets linked to fraud or detect suspicious patterns.