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STATE OF IOWA
KIM REYNOLDS
GOVERNOR
May 19, 2025
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
Senate File 449, an Act relating to digital financial asset transaction kiosks and including
penalties, and effective date and applicability provisions.
The above Senate File is hereby approved on this date.
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 FAX 515.725.3527 WWW.GOVERNOR.IOWA.GOV
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Senate File 449
AN ACT
RELATING TO DIGITAL FINANCIAL ASSET TRANSACTION KIOSKS AND
INCLUDING PENALTIES, AND EFFECTIVE DATE AND APPLICABILITY
PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. NEW SECTION. 533C.1004 Digital financial asset
transaction kiosks.
1. Definitions. As used in this section, unless the context
otherwise requires:
a. Charges - means any of the following:
( 1) A fee or expense paid by a consumer.
( 2) The difference between the current market price of a
digital financial asset on a licensed digital financial asset
exchange and the price of the digital financial asset charged
to a consumer.
b. - Consumer - means either a new consumer or an existing
consumer.
C. " Digital financial asset - means a virtual representation
of value or rights that can be transferred, stored, or traded
electronically and used for payment or investment purposes.
d. " Digital financial asset transaction kiosk" means an
electronic terminal acting as a mechanical agent of an operator
to enable the operator to facilitate the exchange of a digital
financial asset for money, bank credit, or other digital
financial asset, including but not limited to any of the
following:
Senate File 449, p. 2
( 1) By connecting directly to a separate licensed digital
financial asset exchange that performs the digital financial
asset transaction.
( 2) By drawing upon a digital financial asset in the
possession of the operator.
e. Existing consumer - means an individual who is not a new
consumer.
f. ' Licensed digital financial asset exchange - means a
digital financial asset exchange that is not an operator and
that has a license under section 533C.301 to engage in the
business of money transmission in this state.
g. ' New consumer - means an individual who has not previously
engaged in a digital financial asset transaction with a
particular operator. An individual shall continue to be
considered a new consumer for a period of thirty calendar days
after the individual makes their first digital financial asset
transaction with a particular operator.
h. " Operator - means a person who owns, operates, or manages
a digital financial asset transaction kiosk in this state.
i. " Transaction hash - means a unique identifier made up of
a string of characters that act as a record of, and proof of, a
digital financial asset transaction being verified and added to
a blockchain.
2. Daily transactions.
a. An operator shall not, via a digital financial asset
transaction kiosk, accept from a consumer or dispense to a
consumer more than one thousand dollars per calendar day.
b. In the thirty calendar days following a new consumer's
first financial asset transaction with a particular operator,
the operator shall not, via a digital financial asset
transaction kiosk, accept from the new consumer or dispense to
the new consumer more than ten thousand dollars.
3. Maximum charges. An operator shall not directly or
indirectly collect charges related to a digital financial asset
transaction from a consumer that exceed the greater of the
following:
a. Five dollars.
b. Fifteen percent of the United States currency equivalent
of the digital financial assets involved in the digital
Senate File 449, p. 3
financial asset transaction according to the public quoted
market price of the digital financial asset on a licensed
digital financial asset exchange at the date and time the
consumer initiates the digital financial asset transaction.
4. Required disclosure.
a. Prior to a digital financial asset transaction, the
operator shall provide a written disclosure to the consumer in
English, and in the primary language used by the operator to
advertise, solicit, or negotiate with the consumer, containing
the terms and conditions of the digital financial asset
transaction, including, at a minimum, all of the following:
( 1) The dollar amount, in United States currency
equivalent, of the digital financial asset involved in the
transaction.
( 2) Any charges to be collected by the operator.
( 3) If an operator fails to provide a process to reverse or
refund a digital financial asset transaction, a warning that
all digital financial asset transactions are final.
( 4) The following written warning against fraud:
WARNING: CONSUMER FRAUD OFTEN STARTS WITH CONTACT FROM A
STRANGER WHO IS INITIATING A DISHONEST SCHEME. CRIMINAL
ACTIVITY MAY APPEAR IN MANY FORMS, INCLUDING BUT NOT LIMITED
TO THE FOLLOWING:
1. Claims of a frozen bank account or credit card.
2. Claims of fraudulent financial transactions.
3. Claims of identity theft or job offers in exchange for
payment.
4. Requests for payment to government agencies or
companies.
5. Requests for disaster relief donations or loans.
6. Offers to purchase tickets for lotteries, sweepstakes,
or drawings for vehicles.
7. Prompts to click on desktop pop- ups, such as virus
warnings or communication from alleged familiar merchants.
8. Communication from someone impersonating a
representative of your bank or a law enforcement officer.
IF YOU BELIEVE YOU ARE BEING SCAMMED, CALL YOUR LOCAL LAW
ENFORCEMENT.
WARNING: TRANSACTIONS CONDUCTED ON THIS DIGITAL FINANCIAL
Senate File 449, p. 4
ASSET TRANSACTION KIOSK ARE IRREVERSIBLE. PROTECT YOURSELF
FROM FRAUD. NEVER SEND MONEY TO SOMEONE YOU DO NOT KNOW.
b. A disclosure required under paragraph - a - shall be
clear and conspicuous and provided separately from any other
disclosures or information provided by the operator.
c. Prior to entering into a digital financial asset
transaction with a consumer, an operator shall require the
consumer to attest to receiving the disclosure required under
paragraph - a - .
5. Required receipt. For any digital financial asset
transaction made at an operators digital financial asset
transaction kiosk, the operator shall provide the consumer with
a receipt. When possible, the receipt shall be a physical
receipt. The operator may provide the receipt in multiple
communications, if necessary. The receipt shall include, at a
minimum, all of the following information:
a. The name of the consumer.
b. The date and time of the digital financial asset
transaction, the type, value, and transaction hash of the
digital financial asset transaction, and each applicable
virtual currency address.
c. The legal name of the operator and the operator's contact
information, including a telephone number, that may be used
by the consumer to get answers to questions and to register
complaints.
d. The dollar amount of the digital financial asset involved
in the transaction and the exchange rate of the virtual
currency to dollars.
e. ( 1) The dollar amount of all charges collected by
the operator in relation to the digital financial asset
transaction.
( 2) The legal name of the licensed digital financial asset
exchange the operator used to calculate the charges described
in subsection 1, paragraph - a - , subparagraph ( 2).
f. A list of relevant state and local law enforcement and
regulatory agencies for reporting fraud.
g. A statement of the operator's refund policy.
h. Any additional information the operator deems necessary.
i. Any additional information required by federal law.
Senate File 449, p. 5
6. Required report. An operator shall provide a list to
the division of banking of the street address locations of all
digital financial asset transaction kiosks that the operator
owns, operates, or manages in this state. An operator shall
provide the division with updates to the list within thirty
calendar days of any change to the list. The division shall
make each operator's list available to the public via the
division's internet site.
7. Operator duties.
a. If an operator does not engage in digital financial
asset transactions, but facilitates or permits another person
to engage in digital financial asset transactions via the
operators digital financial asset transaction kiosk, the
operator shall do all of the following:
( 1) Ensure that the person engaging in digital financial
asset transactions has a license to engage in the business of
money transmission under section 533C.301.
( 2) Ensure that charges collected from a consumer via the
digital financial asset transaction kiosk comply with this
section.
( 3) Ensure that the person complies with this section.
b. An operator shall provide
of Monday through Friday between
10:00 p.m. The customer service
live customer service a minimum
the hours of 8:00 a.m. and
toll- free telephone number
shall be displayed on the digital financial asset transaction
kiosk.
c. An operator, or an established third party acting on
behalf of the operator and that specializes in performing
blockchain analytics, shall use blockchain analytics software
to assist in the prevention of sending a purchased digital
financial asset from an operator to a virtual currency wallet
known to be affiliated with fraudulent activity at the time
of a digital financial asset transaction, and to detect
transaction patterns indicative of fraud or other illicit
activities. The superintendent may request evidence from an
operator, or of an established third party acting on behalf
of the operator and that specializes in performing blockchain
analytics of current use of blockchain analytics software.
d. For the purpose of facilitating law enforcement and
Senate File 449, p. 6
regulatory agency communications with the operator in the event
of a consumer report of fraud, an operator shall maintain a
dedicated telephone number or email address for use by law
enforcement and regulatory agencies.
8. Refunds — new consumers. Upon the request of a new
consumer, an operator shall issue to the consumer a refund for
the full amount of all digital financial asset transactions
that the consumer made during the thirty- calendar- day period
that the consumer was a new consumer if all of the following
circumstances exist:
a. The new consumer was fraudulently induced to engage in
the digital financial asset transaction for which the consumer
is requesting a refund.
b. The consumer has contacted the operator and a government
or law enforcement agency to report the fraudulent nature of
the digital financial asset transaction within ninety calendar
days of the last digital financial asset transaction to occur
while the consumer was a new consumer.
c. The consumer has submitted proof of the fraud to the
operator, including but not limited to a police report or sworn
declaration detailing the fraudulent nature of the digital
financial asset transaction.
9. Refunds — existing consumers. Upon the request of an
existing consumer, an operator shall issue to the existing
consumer a refund for the full amount of all digital financial
asset transactions that the existing consumer made if all of
the following circumstances exist:
a. The existing consumer was fraudulently induced to engage
in the digital financial asset transaction for which the
consumer is requesting a refund.
b. The existing consumer has contacted the operator and a
government or law enforcement agency to report the fraudulent
nature of the digital financial asset transaction within ninety
calendar days of the digital financial asset transaction for
which the consumer is requesting a refund.
c. The existing consumer has submitted proof of the fraud
to the operator, including but not limited to a police report
or sworn declaration detailing the fraudulent nature of the
digital financial asset transaction.
Senate File 449, p. 7
10. Enforcement — penalties.
a. If the attorney general has reasonable belief that an
operator is in violation of this section, the attorney general
has the sole authority to bring civil action to provide for all
of the following:
( 1) Enjoin further violations by the operator.
( 2) Enforce compliance with this section.
( 3) Civil penalties in an amount not more than ten thousand
dollars for each violation of this section.
( 4) Other remedies permitted under law.
b. If the attorney general has reasonable belief that a
person is in violation of an injunction issued under this
subsection, the attorney general has the sole authority to
bring civil action to provide for civil penalties in an amount
not more than one hundred thousand dollars.
c. An individual that has knowledge of a violation of this
section may report the violation to the attorney general.
d. The attorney general shall establish an electronic
reporting system for the submission of reports pursuant to this
subsection.
11. Compliance policies. An operator shall implement,
maintain, and enforce written policies and procedures for
compliance with this section. The policies and procedures
shall be reviewed and approved by the operator's board of
directors or an equivalent governing body of the operator.
12. Fraud policy. An operator shall take reasonable
steps to detect and prevent fraud, including establishing and
maintaining a written antifraud policy. The antifraud policy
shall, at a minimum, include all of the following:
a. The identification and assessment of fraud- related risk
areas.
b. Procedures and controls to protect against identified
risks.
C. Allocation of responsibility for monitoring risks.
d. Procedures for the periodic evaluation and revision of
the antifraud procedures, controls, and monitoring mechanisms.
13. Compliance officer. An operator shall designate and
employ a compliance officer who meets all of the following
requirements:
Senate File 449, p. 8
a. The individual is qualified to coordinate and monitor
compliance with this section and all applicable state and
federal laws and rules.
b. The individual is a full-time employee of the operator.
c. The individual does not own more than twenty percent of
the operator that employs the individual.
Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
importance, takes effect upon enactment.
Sec. 3. APPLICABILITY. This Act applies on or after July
1, 2025, to operators.
•• vr
AMY SINCVR PAT GRASSLEY
President of the Senate Speaker of the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 449, Ninety-first General Assembly.
Approved , 2025
W ,606A4 M W. CHAR ES SMITHSON
Secr • t • y of Aib - Senate
KI ' E' • DS
Governor