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CS FOR HOUSE BILL NO. 324(JUD)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY THE HOUSE JUDICIARY COMMITTEE
Offered: 3/27/26
Referred: Labor and Commerce
Sponsor(s): REPRESENTATIVES MOORE, Fields
A BILL
FOR AN ACT ENTITLED
"An Act relating to virtual currency kiosks; relating to transactions involving virtual 1
currency; and relating to unfair trade or deceptive acts or practices." 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 3
* Section 1. AS 06.55 is amended by adding new sections to read: 4
Article 1A. Virtual Currency Kiosks. 5
Sec. 06.55.115. Virtual currency kiosk operator licensing and reporting. 6
(a) A virtual currency kiosk operator may not engage in a virtual currency kiosk 7
transaction or hold itself out as being able to engage in virtual currency kiosk 8
transactions with or on behalf of another person unless the virtual currency kiosk 9
operator holds a money transmission license. 10
(b) A virtual currency kiosk operator may not locate a virtual currency kiosk 11
in the state unless the virtual currency kiosk operator registers with and obtains the 12
prior approval of the department. 13
Sec. 06.55.120. Mandatory hold for first transaction. If a user has not 14
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previously engaged with a virtual currency kiosk operator, the virtual currency kiosk 1
operator shall put a 48-hour hold on the first virtual currency kiosk transaction that the 2
user engages in with the virtual currency kiosk operator before completing the 3
transaction. The virtual currency kiosk operator may not engage in another transaction 4
with the user until the 48-hour hold has expired. 5
Sec. 06.55.125. Reporting. (a) Within 45 days after the end of each calendar 6
quarter, a virtual currency kiosk operator shall submit a quarterly report to the 7
department for each location in the state at which the person operates a virtual 8
currency kiosk. The report must include the following: 9
(1) the legal name of the virtual currency kiosk operator; 10
(2) any fictitious or trade name used by the virtual currency kiosk 11
operator; 12
(3) the virtual currency kiosk operator's physical address; 13
(4) the date that operation of a virtual currency kiosk began at the 14
location; 15
(5) if applicable, the date the virtual currency kiosk operator ceased 16
operating a virtual currency kiosk at the location; 17
(6) virtual currency addresses used by the virtual currency kiosk 18
operator to service users at every location in the state; and 19
(7) the number of transactions declined because of suspicion of illicit 20
activity. 21
(b) On or before March 31 of each year, a virtual currency kiosk operator shall 22
submit an annual report to the department relating to the virtual currency kiosk 23
operator's business conducted in the state during the previous calendar year. The 24
report shall be on a form prescribed by the department and must include 25
(1) the gross revenue attributable to virtual currency transactions 26
conducted through virtual currency kiosks in the state; 27
(2) copies of each complaint filed by a user against the virtual currency 28
kiosk operator with the Better Business Bureau or a state or federal agency other than 29
the department and a description of the resolution, if any, of each complaint; 30
(3) the total number and value of virtual currency transactions the 31
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virtual currency kiosk operator conducted through virtual currency kiosks in the state; 1
(4) the total number of refunds requested by users, including the 2
number of requests granted and the number denied by the virtual currency kiosk 3
operator; 4
(5) the total dollar amount of refunds the virtual currency kiosk 5
operator provided to users; 6
(6) contact details for the virtual currency kiosk operator's compliance 7
officer; 8
(7) the total number of virtual currency kiosk locations; and 9
(8) the total number and dollar amount of suspicious transaction 10
reports the virtual currency kiosk operator was required to file under 31 U.S.C. 5311 - 11
5336. 12
(c) Upon request, a virtual currency kiosk operator shall make available to the 13
department information on any transaction processed by the virtual currency kiosk or 14
any user of the virtual currency kiosk, including information related to transactions 15
that were attempted but denied. 16
(d) Data collected by the department under this section is confidential and is 17
not a public record for purposes of AS 40.25.110 - 40.25.140 but may be released in 18
composite form. The department shall prepare and make available to the public an 19
annual report summarizing the data reported to the department under this section. 20
Sec. 06.55.130. Disclosures. (a) A virtual currency kiosk operator shall 21
disclose in a clear, conspicuous, and easily readable manner in the chosen language of 22
the user all relevant terms and conditions generally associated with the products, 23
services, and activities of the virtual currency kiosk operator and virtual currency, 24
including transaction charges collected and exchange rates used by the virtual 25
currency kiosk operator. 26
(b) When a user engages with a virtual currency kiosk, the virtual currency 27
kiosk operator shall obtain acknowledgment of receipt of all disclosures required 28
under this section. 29
(c) The disclosures required under this section must address the following: 30
(1) a warning, written prominently and in bold type stating 31
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WARNING: this technology can be used to defraud you. If 1
someone asked you to deposit money in this machine or is on the 2
telephone with you and claims to be a friend or family member, 3
government agent, computer software representative, bill collector, law 4
enforcement officer, or anyone you do not know personally 5
IMMEDIATELY STOP THIS TRANSACTION and contact your local 6
law enforcement and the kiosk operator. This may be a scam. NEVER 7
SEND MONEY to someone you don't know; 8
(2) a warning of the material risks associated with virtual currency, 9
including a warning that virtual currency is not issued or backed by the United States 10
government; is not legal tender in the United States; is not subject to protections by the 11
Federal Deposit Insurance Corporation, National Credit Union Administration, or 12
Securities Investor Protection Corporation; and that its value relative to the United 13
States dollar may fluctuate significantly; 14
(3) the name, address, and telephone number of the owner of the kiosk 15
and the days, time, and means by which a user can contact the owner for assistance; 16
(4) the address and telephone number of the Alaska state troopers, 17
local law enforcement, and the department, along with a message that a user may 18
report fraud to any of those entities, shall be displayed on or at the location of a virtual 19
currency kiosk or on the first screen of a kiosk; and 20
(5) other disclosures that the department requires by regulation. 21
(d) The disclosures required under this section do not affect the obligation of a 22
virtual currency kiosk operator to issue a refund under AS 06.55.160. 23
(e) After each transaction, the virtual currency kiosk operator shall provide 24
users with paper and electronic receipts. In addition to the information required under 25
AS 06.55.830, the receipt must include the following information: 26
(1) the virtual currency kiosk operator's name and toll-free customer 27
service telephone number; 28
(2) relevant contact information to report fraud to the Alaska state 29
troopers, local law enforcement, and the department; 30
(3) the type, value, date, and time of the transaction; 31
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(4) each applicable virtual currency address and transaction hash, if 1
applicable; 2
(5) all charges incurred in the transaction; 3
(6) the exchange rate used between the virtual currency and United 4
States dollar; 5
(7) if the transaction is subject to a first transaction hold required under 6
AS 06.55.120, notice of the hold and when the hold expires; 7
(8) a statement of the virtual currency kiosk operator's refund policy; 8
(9) any additional information the department requires by regulation. 9
Sec. 06.55.135. Fraud and anti-money laundering policy. A virtual currency 10
kiosk operator shall take reasonable steps to detect and prevent fraud and money 11
laundering, including establishing and maintaining a written anti-fraud policy and 12
abiding by 31 U.S.C. 5311 - 5336 (Bank Secrecy Act). The anti-fraud and money 13
laundering policy must, at a minimum, 14
(1) identify and assess fraud-related and money laundering-related risk 15
areas; 16
(2) establish procedures and controls to protect against identified risks 17
of fraud and money laundering; 18
(3) allocate responsibility for monitoring risks of fraud and money 19
laundering; and 20
(4) require periodic evaluation and revision of the anti-fraud and 21
money laundering procedures, controls, and monitoring mechanisms. 22
Sec. 06.55.140. Blockchain analytics. A virtual currency kiosk operator shall 23
use blockchain analytics and tracing software to assist in the prevention of sending 24
virtual currency to a virtual currency wallet known or likely to be affiliated with 25
fraudulent activity at the time of a transaction and to detect transaction patterns 26
indicative of fraud or other illicit activities. Virtual currency kiosk operators shall 27
block transactions to virtual currency wallets associated with overseas exchanges that 28
are inaccessible to users in the United States. A virtual currency kiosk operator shall 29
make available to the department, upon request, evidence of their current use of 30
blockchain analytics. 31
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Sec. 06.55.145. Posted warnings. A virtual currency kiosk operator shall post 1
a conspicuous written warning in plain view of the virtual currency kiosk providing 2
notice to users that criminals may direct victims of fraud or scams to send money by 3
way of virtual currency kiosks. This warning must include the virtual currency kiosk 4
operator's toll-free customer service telephone number. 5
Sec. 06.55.150. User identification. (a) A virtual currency kiosk operator or 6
their authorized delegate shall verify the identity of a user before accepting payment 7
from the user for a virtual currency transaction. A virtual currency kiosk operator or 8
their authorized delegate shall obtain a copy of a government-issued identification 9
card that identifies the user and shall collect additional user information, including the 10
user's name, date of birth, telephone number, address, and electronic mail address, 11
before accepting a payment from the user at a virtual currency kiosk. 12
(b) A virtual currency kiosk operator may not allow a user to engage in a 13
transaction at a virtual currency kiosk under any name, account, or identity other than 14
the user's own true name and identity. 15
(c) A virtual currency kiosk operator is strictly liable for a violation of this 16
section. 17
Sec. 06.55.155. Training. On an annual basis, a virtual currency kiosk 18
operator shall provide the store or location where the kiosk is located with staff 19
training materials approved by the department. The training materials must outline 20
how criminals may exploit virtual currency kiosks in illicit activity, including red flag 21
indicators that a virtual currency kiosk user may be the victim of fraud or scams as 22
well as signs of financial abuse and exploitation. The virtual currency kiosk operator 23
may not prohibit or prevent staff at the location of the virtual currency kiosk from 24
educating virtual currency kiosk users on fraud and scams. 25
Sec. 06.55.160. Refunds. (a) For cases related to fraud, a virtual currency 26
kiosk operator shall issue a full refund to a user if the user 27
(1) engaged in a transaction involving the virtual currency kiosk that 28
was affected by fraud; 29
(2) informed the virtual currency kiosk operator of the fraudulent 30
nature of the transaction or transactions at issue within 90 days after the last 31
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transaction or within 90 days after the user became aware of the fraud, whichever is 1
later; and 2
(3) within 120 days after contacting the virtual currency kiosk 3
operator, submitted to the virtual currency kiosk operator a police report, report by the 4
department, or a sworn statement detailing the fraudulent nature of the transaction. 5
(b) If a user requests that a transaction be cancelled during a first transaction 6
hold required under AS 06.55.120, the virtual currency kiosk operator shall cancel the 7
transaction and provide the user with a full refund. 8
(c) If the conditions for a refund under (a) or (b) of this section are met, the 9
virtual currency kiosk operator shall issue the refund to the user 10
(1) in the original currency provided by the user; 11
(2) in the full amount of all transactions paid by the user at the time of 12
the transaction, including transaction charges, regardless of any acknowledgment the 13
user may have made before finalizing the transactions; and 14
(3) within 72 hours after receiving a copy of the police report, report 15
by the department, or sworn statement for a refund required under (a) of this section or 16
a request that the transaction be cancelled during a first transaction hold for a refund 17
required under (b) of this section. 18
Sec. 06.55.165. Communication. For all communication between the virtual 19
currency kiosk operator and the user, the virtual currency kiosk operator shall provide 20
written notices in both English and Spanish and communicate with the user in their 21
preferred language through staff, oral interpretation services, or auxiliary aids and 22
services. 23
Sec. 06.55.170. Transaction limit. (a) A virtual currency kiosk operator may 24
not accept transactions totaling more than $1,000, or the equivalent in virtual currency, 25
from a user in one calendar day. 26
(b) A virtual currency kiosk operator may not accept transactions totaling 27
more than $10,000, or the equivalent in virtual currency, from a user in a 30-day 28
period. 29
(c) The limits in this section apply to all products offered by a virtual currency 30
kiosk operator. The use of alternative products, including online purchasing or over-31
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the-counter platforms, may not be employed to circumvent or exceed the limits in this 1
section. 2
Sec. 06.55.175. Transaction fees. A virtual currency kiosk operator may not 3
collect fees from a user for a transaction that total more than three percent of the 4
transaction value in United States dollars or the equivalent in virtual currency. 5
Sec. 06.55.180. Customer service. A virtual currency kiosk operator shall 6
provide live customer service during operating hours, including the hours between 7
8:00 a.m. and 10:00 p.m. Alaska time. A customer service toll-free number must be 8
displayed on the virtual currency kiosk or the virtual currency kiosk screen. 9
Sec. 06.55.185. Law enforcement access to investigative information. A 10
virtual currency kiosk operator shall provide a dedicated communications line for 11
government agencies to contact the virtual currency kiosk operator. The dedicated line 12
must be an electronic mail address or telephone number based in the United States. A 13
law enforcement agency or a regulatory agency, including the department, may use the 14
dedicated line to communicate with the virtual currency kiosk operator in the event of 15
a fraud report from a user. The dedicated line must be regularly monitored. Upon 16
request from a law enforcement agency or regulatory agency, a virtual currency kiosk 17
operator must provide the agency with trace findings and grant the agency assistance 18
with blockchain analytics to assist in an investigative matter related to potential fraud. 19
Sec. 06.55.190. Penalties. (a) A virtual currency kiosk operator that violates 20
AS 06.55.115 - 06.55.200 commits an unfair trade or deceptive act or practice in 21
violation of AS 45.50.471. 22
(b) A virtual currency kiosk operator operating in this state without a money 23
transmission license or that otherwise violates AS 06.55.115 - 06.55.200 is subject to 24
administrative action, including civil penalties, that may, notwithstanding 25
AS 06.55.605, include the seizure of any virtual currency kiosk and the forfeiture of 26
all fees received from customers in the state during the period of unlicensed activity or 27
noncompliance. 28
Sec. 06.55.195. Municipal regulations. Nothing in AS 06.55.115 - 06.55.200 29
may be interpreted to preempt or nullify a municipal ordinance that provides greater 30
protections, requirements, or restrictions if the municipal ordinance does not directly 31
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conflict with AS 06.55.115 - 06.55.200. 1
Sec. 06.55.200. Definitions. In AS 06.55.115 - 06.55.200, 2
(1) "blockchain analytics" means the analysis of data from blockchains 3
or public distributed ledgers, including associated transaction information; 4
(2) "blockchain analytics and tracing software" includes a software 5
service that uses blockchain analytics to provide risk-specific information and tracing 6
of virtual currency wallet addresses; 7
(3) "charges" include 8
(A) fees or expenses paid by a user; and 9
(B) the difference between the market price of the virtual 10
currency and the price of the virtual currency charged to the user; 11
(4) "user" means an individual or entity that initiates, authorizes, or 12
completes a transaction involving virtual currency through a virtual currency kiosk for 13
the purpose of purchasing, selling, transferring, or otherwise exchanging virtual 14
currency; 15
(5) "virtual currency" means an electronic asset that confers economic, 16
proprietary, or access rights or powers and is recorded using cryptographically secured 17
distributed ledger technology, or any similar analogue; 18
(6) "virtual currency address" means an alphanumeric identifier 19
associated with a virtual currency wallet that identifies the location to which a virtual 20
currency transaction can be sent; 21
(7) "virtual currency kiosk" means a person acting on the behalf of, or 22
a mechanical agent of, the virtual currency kiosk operator to enable the virtual 23
currency kiosk operator to facilitate the exchange of virtual currency for money, bank 24
credit, or other virtual currency by connecting directly to a separate virtual currency 25
exchange, drawing on virtual currency in the possession of the electronic terminal's 26
operator, or by another method; 27
(8) "virtual currency kiosk operator" means a person that engages in 28
virtual currency business activity by way of a virtual currency kiosk located in the 29
state or a person that owns, operates, manages, or provides custodial or noncustodial 30
services for a virtual currency kiosk located in the state through which virtual currency 31
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business activity is offered; 1
(9) "virtual currency kiosk transaction" means a transaction conducted 2
or performed, in whole or in part, by electronic means through a virtual currency kiosk 3
or a transaction made at a virtual currency kiosk to purchase virtual currency with 4
United States dollars or to sell virtual currency for United States dollars; 5
(10) "virtual currency wallet" means a software application or other 6
mechanism providing a means to hold the keys necessary to access and transfer virtual 7
currency. 8
* Sec. 2. AS 06.55.840 is amended by adding a new subsection to read: 9
(b) This section does not apply to a refund requested for a virtual currency 10
kiosk transaction under AS 06.55.115 - 06.55.200. 11
* Sec. 3. AS 06.55.990(15) is amended to read: 12
(15) "money transmission" 13
(A) means 14
(i) selling or issuing payment instruments or stored 15
value, or receiving money or monetary value for transmission; or 16
(ii) operating a virtual currency kiosk; 17
(B) [, BUT] does not include the provision solely of delivery, 18
online services, telecommunications services, or network access; 19
* Sec. 4. AS 45.50.471(b) is amended by adding a new paragraph to read: 20
(58) violating AS 06.55.115 - 06.55.200 (virtual currency kiosks). 21