WHEREAS, access to lawful digital asset transactions is an essential component of financial inclusion, innovation, and individual economic freedom in the modern economy; and 

WHEREAS, digital asset kiosks offer a vital point of access for individuals who may lack traditional banking services or prefer to engage with digital assets in a secure, in-person environment; and 

WHEREAS, individuals have a right to use their fiat currency to obtain digital assets lawfully, and businesses have a right to operate compliant digital asset kiosks to serve the public; and 

WHEREAS, clear, consistent, and narrowly tailored regulation of digital asset kiosks helps protect consumers from fraud while preserving lawful access to emerging financial technologies; and 

WHEREAS, it is in the public interest to ensure that consumers can engage with digital assets through kiosks in a safe, transparent, and non-discriminatory manner; now, therefore, 

Be it enacted by the Legislature of the State as follows: 

Section 1. Short Title. 

This Act shall be known and may be cited as the “Virtual Currency Kiosk Consumer Access and Protection Act.” 

Section 2. Definitions. 

For purposes of this Act, the following terms have the meanings given below: 

• “Department.” The state agency or office designated to administer and enforce this Act.
• “Digital asset.” Virtual currencies, cryptocurrencies, including stablecoins, fungible tokens, non-fungible tokens, and other digital-only assets that confer economic, proprietary, or access rights or powers.
• “Fiat currency.” Government-issued currency that is designated as legal tender in the United States and is not backed by a physical commodity.
• “Digital asset kiosk.” An electronic terminal that enables a consumer to exchange fiat currency for digital assets, or digital assets for fiat currency. This includes but is not limited to a machine that either connects to an external digital asset exchange to execute the transaction or dispenses digital assets from the kiosk operator’s own holdings.
• “Digital asset kiosk operator.” A person or entity authorized to do business in this State that owns or operates one or more digital asset kiosks within this State.
• “Individual.” A natural person.
• “Customer.” An Individual who uses a digital asset kiosk to conduct a transaction involving digital assets.
• “New customer.” A Customer during the period of five (5) calendar days following the date of that Customer’s first transaction with a digital asset kiosk operator.
• “Money transmission license.” A license or other authorization issued under the laws of this State to engage in the business of money transmission.

Section 3. License or Registration Required. 

1. No digital asset kiosk operator shall operate any digital asset kiosk in this State unless the operator: 
   • (a) holds a valid money transmission license issued by the Department under applicable State law.

Section 4. Reporting of Kiosk Locations. 

1. Each Digital Asset Kiosk Operator shall submit to the Department an annual report listing all Digital Asset Kiosk locations operated by the Operator in this State. The report shall be filed in a form and by a date prescribed by the Department, but not less frequently than once per calendar year. 
2. The report shall include, for each Digital Asset Kiosk location: 
   • (a) the name of the business or establishment where the kiosk is located;
   • (b) the physical address of the location, including street address, city, and ZIP code;
   • (c) the date on which the kiosk began operation at that location; and
   • (d) the date on which the kiosk ceased operation at that location, if applicable. 

Section 5. Required Disclosures on Kiosk Interface. 

Each Digital Asset Kiosk Operator shall ensure that each kiosk’s user interface prominently displays the following information to the Customer before the Customer commits to a transaction: 

1. all fees or charges the Customer will incur for the transaction; 
2. the applicable exchange rate or price used to convert between Fiat Currency and the Digital Asset, if applicable; 
3. a notice that transactions in Digital Assets are irrevocable and cannot be reversed or refunded once executed; and 
4. a notice that Digital Assets and transactions conducted through the kiosk are not insured or guaranteed by the Federal Deposit Insurance Corporation or the Securities Investor Protection Corporation. 

Section 6. Fraud Warning Notice. 

Each Digital Asset Kiosk Operator shall ensure that a fraud warning is displayed on the kiosk interface before a Customer may complete any transaction. The fraud warning shall describe, in general terms, common scam tactics involving Digital Asset Kiosks and shall advise the Customer not to proceed with the transaction if they are being instructed or pressured by a third party or if they suspect fraud. The warning shall also state that no government agency or official will ever request payment using a Digital Asset Kiosk. The warning shall direct Customers who suspect fraud to contact the phone number displayed on the kiosk, which shall connect either to the Digital Asset Kiosk Operator or to a non-emergency law enforcement line. 

Section 7. Customer Service Contact. 

Each digital asset kiosk shall display a valid telephone number that customers can call for assistance or to report issues. This contact number shall connect either to the digital asset kiosk operator’s customer service center or to a designated local law enforcement non-emergency line. The number must be posted prominently on the kiosk or its electronic display so that customers can easily see it before and during a transaction. 

Section 8. Receipts. 

Upon completion of any transaction at a Digital Asset Kiosk, the Digital Asset Kiosk Operator shall provide the Customer with a receipt in either printed or electronic form. Each receipt shall include: 

1. the date and time of the transaction; 
2. the type and amount of Digital Asset transacted, and, if applicable, the corresponding amount of Fiat Currency exchanged; 
3. the fees charged for the transaction; 
4. the exchange rate applied, if any; and 
5. the name of the Digital Asset Kiosk Operator and the Operator’s customer service contact information. 

Section 9. New Customer Transaction Limits. 

Each Digital Asset Kiosk Operator shall implement transaction limits for New Customers. For the first three (3) calendar days following a Customer’s initial transaction with the Operator, the Operator shall not permit the Customer to conduct transactions totaling more than three thousand dollars ($3,000) per calendar day through a Digital Asset Kiosk. After the three (3) day period has elapsed, the limitation shall no longer apply. 

(a) Base Amount. The daily limit in Section 9 is $3,000 as of January 1, 2026.

(b) Annual Adjustment. “CPI” means the Consumer Price Index for All Urban Consumers (CPI-U), U.S. City Average, All Items, not seasonally adjusted, as published by United States Bureau of Labor Statistics. . Beginning January 1, 2027, the Department shall annually adjust the Base Amount for inflation. The adjusted amount equals:

Adjusted Amount = Base Amount × (CPI for the most recent 12-month average available as of September 1 preceding the year ÷ CPI for 2026).

(C) Rounding, Publication no Negative Adjustments. The Department shall round the adjusted amount up to the nearest $10 and publish it by November 15 each year on its website and in the [state bulletin]. The amount shall not be reduced due to deflation.

Section 10. Recordkeeping and Law Enforcement Cooperation. 

1. Each Digital Asset Kiosk operator shall maintain complete and accurate records of all digital asset kiosk transactions and related customer information as required under applicable state and federal law. At a minimum, transaction records shall be preserved for the period of time required by the Department’s regulations or other applicable law. 
2. A digital asset kiosk operator shall cooperate with law enforcement authorities in the investigation and prevention of fraud and other unlawful activity. Such cooperation includes, but is not limited to: 
   • (a) promptly complying with lawful subpoenas, court orders, and other official requests for records or information relating to kiosk transactions or customers;
   • (b) respond in good faith to lawful requests from the Department or law enforcement relating to fraud involving a Digital Asset Kiosk;
   • (c) designate a point of contact within the Operator’s organization for communication with the Department and law enforcement regarding fraud-related matters. 

No provision of this section shall be construed to require a Digital Asset Kiosk Operator to monitor or block transactions in real time, except as required by other applicable laws. 

Section 11. Enforcement and Authority of the Department. 

1. Any violations are subject to penalties as described in the State’s money transmitter statute.

Section 12. State Preemption of Local Regulation.

A county, city, township or village, shall not enact or enforce an ordinance that restricts the use of a virtual currency kiosk in this state except as expressly authorized under this Act.

Section 13. [Effective Date]. 

This Act shall take effect sixty (60) days after enactment 

Section 14. Severability. 

If any provision of this Act or the application of any provision to any person or circumstance is held to be invalid, the remainder of this Act and the application of its provisions to any other person or circumstance shall not be affected.