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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
SENATE
SENATE
BILL
NO.
1333
BY
STATE
AFFAIRS
COMMITTEE
AN
ACT
1
RELATING
TO
THE
VIRTUAL
CURRENCY
KIOSK
FRAUD
PREVENTION
ACT;
AMENDING
TITLE
2
28,
IDAHO
CODE,
BY
THE
ADDITION
OF
A
NEW
CHAPTER
54,
TITLE
28,
IDAHO
3
CODE,
TO
PROVIDE
A
SHORT
TITLE,
TO
DEFINE
TERMS,
TO
ESTABLISH
A
LICENS
-
4
ING
REQUIREMENT,
TO
ESTABLISH
REPORTING
REQUIREMENTS,
TO
PROVIDE
FOR
5
MANDATORY
DISCLOSURES,
TO
ESTABLISH
CUSTOMER
SERVICE
REQUIREMENTS,
6
TO
PROVIDE
FOR
TRANSACTION
RECEIPTS,
TO
PROVIDE
FOR
THE
PREVENTION
OF
7
FRAUDULENT
ACTIVITY
AND
MONEY
LAUNDERING,
TO
PROVIDE
FOR
REFUNDS,
TO
8
PROVIDE
FOR
PENALTIES,
AND
TO
PROVIDE
FOR
INFORMATION
-
SHARING
RELATED
9
TO
VIRTUAL
CURRENCY
KIOSK
FRAUD;
AND
DECLARING
AN
EMERGENCY
AND
PROVID
-
10
ING
AN
EFFECTIVE
DATE.
1
1
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
12
SECTION
1.
That
Title
28,
Idaho
Code,
be,
and
the
same
is
hereby
amended
13
by
the
addition
thereto
of
a
NEW
CHAPTER
,
to
be
known
and
designated
as
Chap
-
14
ter
54,
Title
28,
Idaho
Code,
and
to
read
as
follows:
15
CHAPTER
54
16
VIRTUAL
CURRENCY
KIOSK
FRAUD
PREVENTION
ACT
17
28
-
5401.
SHORT
TITLE.
This
act
shall
be
known
and
may
be
cited
as
the
18
"Virtual
Currency
Kiosk
Fraud
Prevention
Act."
19
28
-
5402.
DEFINITIONS.
For
the
purposes
of
this
chapter:
20
(1)
"Blockchain
analytics"
means
the
analysis
of
data
from
blockchains
21
or
public
distributed
ledgers,
including
associated
transaction
informa
-
22
tion.
23
(2)
"Blockchain
analytics
and
tracing
software"
means
a
software
ser
-
24
vice
that
uses
blockchain
analytics
data
to
provide
risk
-
specific
informa
-
25
tion
and
tracing
of
virtual
currency
wallet
addresses.
26
(3)
"Department"
means
the
Idaho
department
of
finance.
27
(4)
"Fraud"
or
"fraudulent"
means
an
intentional
deception
or
misrep
-
28
resentation
made
by
a
person
with
the
knowledge
that
the
deception
could
re
-
29
sult
in
some
unauthorized
benefit
to
himself
or
some
other
person.
30
(5)
"New
customer"
means
a
user
who
is
transacting
with
an
operator:
31
(a)
For
the
first
time;
or
32
(b)
Within
seventy
-
two
(72)
hours
after
such
user's
first
transaction
33
with
the
operator.
34
(6)
"Operator"
means
a
person
who
owns,
operates,
or
manages
a
virtual
35
currency
kiosk
located
in
the
United
States
or
in
any
United
States
terri
-
36
tory.
37
(7)
"Potentially
vulnerable
older
adult"
means
a
person
sixty
-
five
38
(65)
years
of
age
or
older
who
is
unable
to
protect
himself
from
maltreatment
39
because
of:
40
2
(a)
A
mental,
physical,
or
developmental
disability;
1
(b)
A
degenerative
brain
disease;
2
(c)
An
inability
to
communicate
or
implement
decisions
regarding
his
3
person;
or
4
(d)
Other
infirmities
of
aging
in
an
older
adult.
5
(8)
"Transaction
fees"
means
fees
or
expenses
paid
by
a
user
in
order
6
to
conduct
a
virtual
currency
kiosk
transaction.
Transaction
fees
equal
the
7
difference
between
the
market
price
of
the
virtual
currency
and
the
price
of
8
the
virtual
currency
charged
to
the
user.
9
(9)
"Transaction
hash"
means
the
unique
alphanumeric
identifier
as
-
10
signed
to
a
virtual
currency
kiosk
transaction.
1
1
(10)
"User"
means
any
individual
or
entity
that
initiates,
authorizes,
12
or
completes
a
transaction
involving
virtual
currency
through
a
virtual
cur
-
13
rency
kiosk,
whether
for
the
purpose
of
purchasing,
selling,
transferring,
14
or
otherwise
exchanging
virtual
currency.
15
(11)
"Virtual
currency"
means
a
type
of
digital
asset,
as
defined
in
16
section
28
-
5303,
Idaho
Code,
that
confers
economic,
proprietary,
or
access
17
rights
or
powers
and
is
recorded
using
cryptographically
secured
dis
-
18
tributed
ledger
technology
or
any
similar
analogue.
19
(12)
"Virtual
currency
address"
means
an
alphanumeric
identifier
asso
-
20
ciated
with
a
virtual
currency
wallet
identifying
the
location
to
which
a
21
virtual
currency
transaction
can
be
sent.
22
(13)
"Virtual
currency
kiosk"
means
a
stand
-
alone
machine
that
is
ca
-
23
pable
of
accepting
or
dispensing
legal
tender
in
exchange
for
virtual
cur
-
24
rency.
25
(14)
"Virtual
currency
kiosk
transaction"
means
a
transaction
con
-
26
ducted
or
performed,
in
whole
or
in
part,
by
electronic
means
via
a
virtual
27
currency
kiosk.
Virtual
currency
kiosk
transaction
also
means
a
transaction
28
made
at
a
virtual
currency
kiosk
to
purchase
virtual
currency
with
or
to
sell
29
virtual
currency
for
United
States
dollars.
30
(15)
"Virtual
currency
wallet"
means
a
software
application
or
other
31
mechanism
providing
a
means
to
hold
the
keys
necessary
to
access
and
transfer
32
virtual
currency.
33
28
-
5403.
OPERATOR
LICENSING
REQUIREMENT.
In
order
for
an
operator
to
34
engage
in
or
hold
itself
out
as
being
able
to
engage
in
a
virtual
currency
35
kiosk
transaction,
such
operator
must
be
a
licensed
money
transmitter
pur
-
36
suant
to
the
provisions
of
chapter
29,
title
26,
Idaho
Code.
37
28
-
5404.
OPERATOR
REPORTING
REQUIREMENTS.
(1)
An
operator
shall
com
-
38
plete,
collect,
and
maintain
quarterly
reports
and
any
supporting
records
39
for
each
virtual
currency
kiosk
that
it
operates
in
Idaho.
Such
reports
and
40
records
shall
be
made
available
to
the
department,
upon
request,
in
a
format
41
specified
by
the
department,
within
three
(3)
business
days
of
such
request.
42
Reports
pursuant
to
this
subsection
shall
include,
at
a
minimum,
the
follow
-
43
ing
information:
44
(a)
The
operator's
legal
name;
45
(b)
Any
fictitious
or
trade
name
used
by
the
operator,
if
applicable;
46
(c)
The
operator's
physical
address;
47
3
(d)
The
date
the
operator
commenced
operation
of
the
virtual
currency
1
kiosk
at
the
location;
2
(e)
The
date
the
operator
ceased
operation
of
the
virtual
currency
3
kiosk
at
the
location,
if
applicable;
4
(f)
Each
address
used
by
the
operator
to
provide
customer
service
in
5
Idaho;
and
6
(g)
The
number
of
transactions
that
the
operator
declined
due
to
suspi
-
7
cion
of
fraud
or
other
illegal
activity.
8
(2)
An
operator
shall
complete,
collect,
and
maintain
annual
reports
9
and
any
supporting
records
for
each
virtual
currency
kiosk
it
operates
in
10
Idaho,
to
be
completed
on
or
before
March
31,
relating
to
the
operator's
1
1
business
conducted
in
the
prior
year.
Such
reports
and
records
shall
be
made
12
available
to
the
department,
upon
request,
in
a
format
specified
by
the
de
-
13
partment,
within
three
(3)
business
days
of
such
request.
A
report
pursuant
14
to
this
subsection
shall
be
on
a
form
prescribed
by
the
department
and
shall
15
include,
at
a
minimum:
16
(a)
Gross
revenue
attributable
to
virtual
currency
transactions
con
-
17
ducted
via
virtual
currency
kiosks
in
the
state;
18
(b)
A
copy
of
any
complaint
filed
against
the
operator
with
the
bet
-
19
ter
business
bureau,
with
any
state
agency
other
than
the
department,
or
20
with
any
federal
agency,
and
a
description
of
the
resolution,
if
any,
of
21
each
such
complaint;
22
(c)
The
total
number
and
value
of
virtual
currency
transactions
con
-
23
ducted
via
the
operator's
virtual
currency
kiosks
in
the
state;
24
(d)
The
total
number
of
refunds
requested
by
users,
the
number
of
refund
25
requests
granted
and
the
number
of
refund
requests
denied
by
the
opera
-
26
tor,
and
the
total
dollar
amount
of
such
refunds;
27
(e)
Contact
details
of
the
operator's
compliance
officer;
28
(f)
A
dedicated
United
States
phone
number
and
email
address
for
commu
-
29
nications
with
government
fraud
investigators
and
law
enforcement;
and
30
(g)
The
total
number
of
virtual
currency
corresponding
locations.
31
(3)
The
phone
number
and
email
address
required
pursuant
to
subsection
32
(2)(f)
of
this
section
shall
be
frequently
monitored.
Upon
request
from
law
33
enforcement
or
the
department,
a
virtual
currency
kiosk
operator
shall
pro
-
34
vide
trace
findings
and
grant
assistance
with
blockchain
analytics
for
in
-
35
vestigative
purposes.
36
(4)
Within
ten
(10)
business
days
after
receipt
of
a
request
from
the
37
department,
the
virtual
currency
kiosk
operator
shall
provide
any
transac
-
38
tion
and
user
information
requested
by
the
department,
including
with
re
-
39
spect
to
any
transactions
attempted
but
denied.
40
(5)
Transaction
data
collected
by
the
department
pursuant
to
this
sec
-
41
tion
shall
be
confidential
and
may
be
released
only
in
composite
form,
unless
42
otherwise
required
by
law.
43
(6)
Failure
to
complete,
collect,
or
maintain
a
report
or
record
as
re
-
44
quired
pursuant
to
this
section,
or
to
timely
provide
such
reports
or
records
45
to
the
department,
shall
constitute
a
violation
of
this
chapter.
46
28
-
5405.
MANDATORY
DISCLOSURES.
(1)
An
operator
shall
disclose
all
47
relevant
terms
and
conditions
generally
associated
with
the
products,
ser
-
48
vices,
and
activities
of
the
operator
and
virtual
currency,
including
but
49
4
not
limited
to
transaction
fees
collected
and
exchange
rates
used.
Such
dis
-
1
closures
shall
be
made
in
a
clear,
conspicuous,
and
easily
readable
manner
in
2
the
language
chosen
by
the
user.
3
(2)
A
user
who
engages
with
a
virtual
currency
kiosk
shall
receive
ac
-
4
knowledgment
of
receipt
of
all
disclosures
required
under
this
section
via
5
confirmation
of
consent
at
such
virtual
currency
kiosk.
6
(3)
The
disclosures
required
by
this
section
shall
address
the
follow
-
7
ing
in
substantially
the
following
form:
8
WARNING:
this
technology
can
be
used
to
defraud
you.
9
If
someone
asked
you
to
deposit
money
in
this
machine
and/or
is
on
the
10
phone
with
you
and
claims
to
be
a:
1
1
Friend
or
family
member,
12
Government
agent,
13
Computer
software
representative,
14
Bill
collector,
15
Law
enforcement
officer,
or
16
A
person
whom
you
do
not
know...
17
STOP
THIS
TRANSACTION
IMMEDIATELY,
contact
law
enforcement,
and
notify
18
the
kiosk
operator.
19
This
may
be
a
scam
.
NEVER
SEND
MONEY
TO
SOMEONE
YOU
DO
NOT
KNOW.
20
(4)
The
material
risks
associated
with
virtual
currency
and
virtual
21
currency
transactions
shall
be
disclosed
to
each
user
of
a
virtual
currency
22
kiosk
in
Idaho.
Such
disclosures
shall
be
accompanied
by
information
that
23
may
be
used
by
a
user
to
seek
assistance,
including:
24
(a)
The
name,
address,
and
telephone
number
of
the
operator;
25
(b)
The
days
and
times
the
operator
is
available
and
the
methods
that
a
26
user
may
use
to
contact
the
operator
for
assistance;
and
27
(c)
The
contact
information
for
state
and
local
law
enforcement,
which
28
shall
be
displayed
on
or
at
the
location
of
the
virtual
currency
kiosk
or
29
on
the
first
screen
of
such
kiosk.
30
28
-
5406.
CUSTOMER
SERVICE
REQUIREMENTS.
(1)
An
operator
shall
provide
31
live
customer
service
at
a
toll
-
free
number
seven
(7)
days
a
week.
Daily
32
business
hours
shall
be
from,
at
a
minimum,
8:00
a.m.
to
8:00
p.m.
local
time
33
for
all
Idaho
locations
where
the
operator's
virtual
currency
kiosks
are
lo
-
34
cated.
35
(2)
Trained
representatives
of
an
operator
shall
be
available
to
re
-
36
spond
to
customer
telephone
inquiries
during
the
business
hours
required
37
pursuant
to
this
section.
38
(3)
Inquiries
received
after
normal
business
hours
shall
be
responded
39
to
by
a
trained
representative
on
the
next
business
day.
40
28
-
5407.
TRANSACTION
RECEIPTS.
(1)
An
operator
shall
provide
each
41
user
with
paper
and
electronic
receipts
at
the
conclusion
of
each
virtual
42
currency
kiosk
transaction.
43
5
(2)
A
receipt
required
pursuant
to
this
section
shall
include
the
fol
-
1
lowing
information:
2
(a)
The
operator's
name
and
toll
-
free
customer
service
phone
number
3
with
operating
hours;
4
(b)
Relevant
contact
information
for
the
operator,
state
and
local
law
5
enforcement,
and
the
department;
6
(c)
Type,
value,
date,
and
precise
time
of
the
transaction
and
each
ap
-
7
plicable
virtual
currency
address
and
transaction
hash;
8
(d)
All
transaction
fees;
9
(e)
The
exchange
rate
of
the
virtual
currency
to
U.S.
dollars;
and
10
(f)
The
virtual
currency
kiosk
operator's
refund
policy.
1
1
28
-
5408.
PREVENTION
OF
FRAUDULENT
ACTIVITY
AND
MONEY
LAUNDERING.
(1)
12
An
operator
shall
take
reasonable
steps
to
detect
and
prevent
fraud
and
money
13
laundering.
This
shall
include:
14
(a)
Establishing
and
maintaining
a
written
anti
-
fraud
policy;
15
(b)
Using
blockchain
analytics
and
tracing
software
to
assist
in
the
16
prevention
of
sending
virtual
currency
to
a
virtual
currency
wallet
17
known
or
likely
to
be
affiliated
with
fraudulent
activity
at
the
time
of
18
a
transaction
and
to
detect
transaction
patterns
indicative
of
fraud
or
19
other
illicit
activities;
20
(c)
Blocking
transactions
to
virtual
currency
wallets
associated
21
with
overseas
exchanges
non
-
accessible
for
users
located
in
the
United
22
States;
23
(d)
Not
accepting
from
or
dispensing
to
a
new
customer
an
amount
that
24
is
more
than
two
thousand
dollars
($2,000)
in
United
States
currency,
25
or
its
equivalent
in
virtual
currency,
during
any
twenty
-
four
(24)
hour
26
period;
27
(e)
Ensuring
that
during
the
thirty
(30)
calendar
days
following
a
new
28
customer's
first
transaction,
the
cumulative
total
of
all
transactions
29
with
an
operator
shall
not
exceed
ten
thousand
dollars
($10,000)
in
U.S.
30
currency
or
its
equivalent
in
virtual
currency;
and
31
(f)
Implementing
the
following
protections
for
new
customers:
32
(i)
Delaying
settlement
of
a
new
customer's
first
virtual
cur
-
33
rency
kiosk
transaction
for
seventy
-
two
(72)
hours;
and
34
(ii)
Allowing,
upon
request,
for
the
full
refund
of
any
fraudulent
35
virtual
currency
kiosk
transaction
experienced
by
a
new
customer
36
within
seventy
-
two
(72)
hours
after
such
transaction,
if
such
37
user:
38
1.
Contacts
the
operator
in
writing
to
provide
notice
of
the
39
fraudulent
nature
of
the
virtual
currency
kiosk
transac
-
40
tion;
and
41
2.
Files
a
report
with
a
government
or
law
enforcement
42
agency
memorializing
the
fraudulent
nature
of
the
virtual
43
currency
kiosk
transaction.
44
(2)
A
refund
pursuant
to
subsection
(1)(f)
this
section
shall
include
45
all
transaction
fees
paid
by
a
new
customer
at
the
time
of
the
transaction
46
and
shall
occur
within
twenty
-
one
(21)
days
after
such
new
customer
provides
47
notice
of
a
fraudulent
virtual
currency
transaction.
A
refund
pursuant
to
48
this
section
shall
be
paid
to
a
user
in
the
user's
originating
currency.
49
6
(3)
The
transaction
limits
and
protections
provided
for
in
this
sec
-
1
tion
shall
apply
to
all
virtual
currency
transactions
offered
by
an
opera
-
2
tor
through
a
virtual
currency
kiosk.
Operators
shall
not
use
alternative
3
methods,
including
but
not
limited
to
online
portals,
affiliated
kiosks,
or
4
over
-
the
-
counter
transactions,
to
evade
or
exceed
the
limits
provided
for
in
5
this
section.
6
(4)
The
department
may
request
evidence
from
any
virtual
currency
kiosk
7
operator
of
its
current
use
of
blockchain
analytics
as
part
of
the
operator's
8
registration
and
maintenance
of
a
money
transmitter
license.
9
(5)
An
operator
shall
provide
notice
to
users
regarding
the
delayed
10
settlement
or
refund
provisions
of
this
section,
including
contact
informa
-
1
1
tion
to
report
a
fraudulent
transaction
in
writing.
12
28
-
5409.
TRANSACTION
FEE
REFUNDS.
(1)
Subject
to
the
requirements
of
13
this
section,
an
operator
shall
issue
a
refund
of
all
transaction
fees
paid
14
by
a
user
at
the
time
of
a
transaction
if
such
user
experiences
fraud
with
re
-
15
spect
to
such
transaction.
Such
refund
shall
be
issued
notwithstanding
any
16
acknowledgment
that
a
user
may
have
made
prior
to
finalizing
such
transac
-
17
tion.
18
(2)
A
user
who
seeks
a
refund
pursuant
to
the
provisions
of
this
section
19
shall:
20
(a)
Have
engaged
in
a
transaction
or
transactions
involving
the
virtual
21
currency
kiosk
that
were
affected
by
fraud,
whether
authorized
or
unau
-
22
thorized;
23
(b)
Contact
the
virtual
currency
kiosk
operator
to
inform
the
opera
-
24
tor
of
the
fraudulent
nature
of
the
transaction
or
transactions
at
issue
25
within
thirty
(30)
days
after
the
last
transaction
to
occur
or
becoming
26
aware
of
the
theft;
and
27
(c)
Within
thirty
(30)
days
after
contacting
the
virtual
kiosk
opera
-
28
tor,
submit
a
police
report,
government
agency
report,
or
a
sworn
state
-
29
ment
detailing
the
fraudulent
nature
of
the
transaction
or
transactions
30
and
provide
a
copy
to
the
virtual
currency
kiosk
operator.
31
(3)
If
conditions
for
refund
issuance
pursuant
to
this
section
are
met,
32
an
operator
shall
issue
a
full
refund
of
transaction
fees
within
seventy
-
two
33
(72)
hours
after
receiving
notice
from
a
user
and
receiving
a
copy
of
the
po
-
34
lice
report,
government
agency
report,
or
sworn
statement.
35
(4)
A
refund
pursuant
to
this
section
shall
be
paid
to
a
user
in
the
36
user's
originating
currency.
37
(5)
The
refund
available
pursuant
to
this
section
is
distinct
from
the
38
refund
available
to
protect
new
customers
pursuant
to
section
28
-
5408,
Idaho
39
Code,
and
such
refunds
shall
be
exclusive
of
each
other.
40
28
-
5410.
PENALTIES.
(1)
A
violation
of
this
chapter
shall
be
deemed
an
41
unfair
and
deceptive
practice
in
violation
of
the
Idaho
consumer
protection
42
act,
chapter
6,
title
48,
Idaho
Code.
43
(2)
The
attorney
general
may
undertake
any
and
all
actions
authorized
44
by
the
Idaho
consumer
protection
act
to
investigate
and
enforce
a
violation
45
of
this
chapter.
46
(3)
A
person
harmed
by
a
violation
of
this
chapter
may
initiate
a
civil
47
action
and
may
seek
remedies
pursuant
to
section
48
-
608,
Idaho
Code.
48
7
(4)
In
addition
to
any
other
penalties:
1
(a)
An
operator
who
violates
this
chapter
shall
be
subject
to
revoca
-
2
tion
of
such
operator's
money
transmitter
licensure
pursuant
to
the
3
provisions
of
chapter
29,
title
26,
Idaho
Code;
and
4
(b)
An
operator
who
willfully
and
knowingly
violates
this
chapter
shall
5
be
guilty
of
a
misdemeanor
and,
upon
conviction,
may
be
sentenced
to
pay
6
a
fine
not
exceeding
one
thousand
dollars
($1,000).
7
28
-
5411.
INFORMATION
-
SHARING
RELATED
TO
VIRTUAL
CURRENCY
KIOSK
8
FRAUD.
(1)
Notwithstanding
any
provision
of
law
to
the
contrary,
upon
rea
-
9
sonable
suspicion
of
fraud
or
financial
exploitation
involving
a
virtual
10
currency
kiosk
transaction,
the
department,
the
attorney
general,
any
state
1
1
or
local
law
enforcement
agency,
the
Idaho
commission
on
aging,
or
an
adult
12
protective
services
provider
may
share
relevant
information
relating
to
13
such
suspicion
for
the
purposes
of
investigation,
enforcement,
or
consumer
14
protection.
15
(2)
If
the
department
is
conducting
an
investigation
or
becomes
aware
16
of
an
ongoing
investigation
involving
suspected
fraud
or
financial
ex
-
17
ploitation
related
to
a
virtual
currency
kiosk
transaction,
the
department
18
shall
share
relevant
information
with
the
attorney
general
and
any
state
or
19
local
law
enforcement
agency
with
jurisdiction
and
with
the
Idaho
commission
20
on
aging
or
an
adult
protective
services
provider
when
the
affected
individ
-
21
ual
is
a
potentially
vulnerable
older
adult.
22
(3)
Information
shared
pursuant
to
this
section
that
is
confidential
or
23
exempt
from
disclosure
under
chapter
1,
title
74,
Idaho
Code,
shall
retain
24
its
confidential
status
and
shall
not
be
subject
to
public
disclosure
except
25
as
otherwise
authorized
by
law.
26
(4)
Any
agency,
political
subdivision,
or
employee
thereof
who
acts
in
27
good
faith
when
sharing
information
pursuant
to
this
section
shall
be
immune
28
from
any
civil
or
criminal
liability
arising
from
the
sharing
of
such
infor
-
29
mation.
30
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
31
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
32
July
1,
2026.
33