RELATING TO DIGITAL FINANCIAL ASSET TRANSACTION KIOSKS.

HB2003

HOUSE OF REPRESENTATIVES

H.B. NO.

2003

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

relating
to digital financial asset transaction kiosks
.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

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SECTION 1.
�
Chapter 481B, Hawaii Revised Statutes, is
amended by adding a new section to part I to be appropriately designated and to
read as follows:

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"
�481B-
�
Digital
financial asset transaction kiosks; daily cap; fraud; disclosures.
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(a)
�
An operator shall not accept transactions from
a single customer through a digital financial asset transaction kiosk of more
than:

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(1)
�
$2,000 or the
equivalent in digital financial assets per day; or

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(2)
�
$10,000 or the
equivalent in digital financial assets in any thirty-day period.

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(b)
�

All operators shall use blockchain analytics and tracing software to
prevent digital financial assets from being sent to a digital financial asset
wallet known or likely to be affiliated with fraudulent activity at the time of
transaction and to detect transaction patterns indicative of fraud or other
illicit activities.
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Operators shall
block transactions to digital financial asset wallets associated with overseas
exchanges inaccessible to users in the United States.
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The attorney general, executive director of
the office of consumer protection, director of law enforcement, and county police
departments may obtain evidence from an operator related to the operator's current
use of blockchain analytics.

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(c)
�
An
operator shall disclose in a clear, conspicuous, and easily readable manner all
relevant terms and conditions generally associated with the products, services,
and activities of the digital financial asset transaction kiosk, including but
not limited to transaction charges collected and exchange rates used by the
operator.

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(d)
�
An
operator shall
display a warning on the digital financial asset
transaction kiosk or on the screen of the kiosk, written prominently in bold
type and provided separately from any other disclosure made pursuant to this
section, in substantially the following form:

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"WARNING:
�
This technology can be used to defraud you.
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If someone asked you to deposit money in this
machine and/or is on the phone with you and claims to be a:

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(1)
�
Government
agent;

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(2)
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Computer
software representative;

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(3)
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Bill collector;

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(4)
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Law
enforcement officer; or

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(5)
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Anyone you do
not personally know,

STOP THIS TRANSACTION IMMEDIATELY and contact
your local law enforcement and digital financial asset transaction kiosk
operator.
�
This is a scam.
�
NEVER SEND MONEY to someone you don't
know."

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(e)
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An operator shall disclose the material risks
associated with digital financial assets and digital financial asset
transactions to the customer at the digital financial asset transaction kiosk,
including disclosures that inform the customer that digital financial assets:

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(1)
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Are not issued
or backed by the United States government and are not legal tender in the
United States;

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(2)
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Are not subject
to protection by the Federal Deposit Insurance Corporation, National Credit
Union Administration, or Securities Investor Protection Corporation; and

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(3)
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May fluctuate significantly
in value relative to the United States dollar.

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(f)
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An operator shall disclose the following
information to the customer at the digital financial asset transaction kiosk or
the first screen of the kiosk:

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(1)
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The name,
address, and telephone number of the operator;

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(2)
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The days, time,
and means of contact a customer should utilize to contact the operator for
assistance; and

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(3)
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Any state and
county law enforcement and relevant government agency for reporting fraud.

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(g)
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Any disclosure made by an operator pursuant
to this section shall not deprive a customer of receiving a refund.

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(h)
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Upon completion of each transaction, the
operator shall provide the customer with paper and electronic receipts in a
retainable form.
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The receipt shall
include the following information:

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(1)
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The operator's
name and toll-free customer service phone number;

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(2)
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Relevant
contact information for state and county law enforcement and any relevant
government agency for reporting fraud;

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(3)
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Type, value,
date, and precise time of the transaction;

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(4)
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Each applicable
digital financial asset address and transaction hash where available;

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(5)
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All charges;

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(6)
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Exchange rate
of the digital financial assets to United States dollars;

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(7)
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The operator's
refund policy;

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(8)
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Any additional
information as determined by the operator; and

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(9)
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Any additional
information required by the applicable state or county law enforcement or relevant
government agency.

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(i)
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When a customer reports a fraudulent
transaction, the operator shall issue a refund to the customer in the full
amount of all transactions paid by the defrauded customer, including but not
limited to any transaction charges, at the time of the transaction, regardless
of any acknowledgements the customer may have made prior to finalizing the
transactions; provided that the customer:

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(1)
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Has engaged in
a transaction or transactions involving the digital financial asset transaction
kiosk where fraud occurred, whether authorized or unauthorized;

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(2)
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Contacted the
operator to inform the operator of the fraudulent nature of the transaction or
transactions at issue within ninety days after the last transaction occurred or
after the customer became aware of the fraud; and

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(3)
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Submitted a
police report, government agency report, or sworn statement detailing the
fraudulent nature of the transaction or transactions to the operator within one
hundred twenty days after contacting the operator.

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The refund under this subsection shall
be paid in the originating currency of the transaction.
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The operator shall issue a full refund within
seventy-two hours after being notified by the defrauded customer and receiving
a copy of the police or government agency's report or sworn statement.

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(j)
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All operators shall provide live customer
service during operating hours and between the hours of 8:00 a.m. and 10:00 p.m.
Hawaii Standard Time.
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The customer
service toll-free number shall be displayed on the digital financial asset
transaction kiosk or on the screen of the kiosk.

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(k)
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All operators performing business in the
State shall provide a dedicated communications line for the attorney general,
office of consumer protection, department of law enforcement, and county police
departments via a United States telephone number or electronic mail address.
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The dedicated communications line shall be
used to facilitate law enforcement and government agency communications with
the operator in the event of a fraud report from a customer.
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Upon request from a law enforcement or government
agency, an operator shall provide its trace findings and provide blockchain
analytics to assist the law enforcement or government agency in any
investigative matters related to the potential fraud.

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(l)
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For the purposes of this section:

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"Cash" means physical
United States currency, including coins and paper currency.

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"Customer" means any
individual or entity that initiates, authorizes, or completes a transaction
involving digital financial assets through a digital financial asset
transaction kiosk, whether for the purpose of purchasing, selling,
transferring, or otherwise exchanging digital financial assets.

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"Digital financial
asset" means a digital representation of value that is used as a medium of
exchange, unit of account, or store of value, and that is not legal tender,
regardless of whether denominated in legal tender.
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"Digital financial asset" does not
include:

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(1)
�
A transaction
in which a merchant grants, as part of an affinity or rewards program, value
that cannot be taken from or exchanged with the merchant for legal tender, bank
or credit union credit, or a digital financial asset;

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(2)
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A digital representation
of value issued by or on behalf of a publisher and used solely within an online
game, game platform, or family of games sold by the same publisher or offered
on the same game platform; or

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(3)
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A security
registered with or exempt from registration with the United States Securities
and Exchange Commission or a security registered or exempt from registration
under chapter 485A.

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"Digital financial asset
transaction" means a transaction conducted or performed, in whole or in
part, by electronic means via a digital financial asset transaction kiosk or
other means that facilitates or enables the purchase of digital financial
assets through a product or application that directs the customer to remit
payment in person, including through a clerk or other intermediary, for the purpose
of completing the transaction.

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"Digital financial asset
wallet" means a software program or an application that stores digital
financial assets.

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"Digital financial asset
transaction kiosk" means an electronic information processing device that
is capable of accepting or dispensing United States currency by means of credit
card or cash in exchange for a digital financial asset.

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"Operator" means a
person who owns, operates, or manages a digital financial asset transaction
kiosk located in the State.
"

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SECTION 2.
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New statutory material is underscored.

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SECTION 3.
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This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Digital
Financial Asset Transaction Kiosks; Cryptocurrency; Operators; Limits; Fraud
Prevention; Disclosures; Receipts; Refunds

Description:

Establishes
limits on transactions through digital financial asset transaction kiosks.
�
Requires operators of digital financial asset
transaction kiosks to use blockchain analytics and tracing software to prevent
fraud; make certain disclosures; provide receipts to customers; provide full
refunds under certain circumstances; and provide live customer service and a
dedicated communications line for the Attorney General, Office of Consumer Protection,
Department of Law Enforcement, and county police departments.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.