(1) (a) The virtual currency kiosk operator, in establishing a relationship with a customer and before entering into an initial virtual currency kiosk transaction for, on behalf of or with the customer, shall disclose in clear, conspicuous and legible writing, both: (i) in English; and (ii) in the language principally used by the licensee or authorized delegate to advertise, solicit or negotiate, either orally or in writing, for a transaction conducted in person, electronically or by phone, if other than English; all material risks generally associated with virtual currency.(b) The material risks associated with virtual currency required to be disclosed under paragraph (a) of this subsection (1) include, but are not limited to:(i) A disclosure that is acknowledged by the customer and provided separately from the disclosures provided under subparagraphs (ii) and (vii) of this paragraph (b), and written prominently and in bold type, stating the following:WARNING: CONSUMER FRAUD OFTEN STARTS WITH CONTACT FROM A STRANGER WHO IS INITIATING A DISHONEST SCHEME. I UNDERSTAND THAT CRIMINAL ACTIVITY MAY APPEAR IN MANY FORMS, INCLUDING:(1) Claims of a frozen bank account or credit card.(2) Fraudulent bank transactions.(3) Claims of identity theft or job offerings in exchange for payments.(4) Requests for payments 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 popups, 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 A LOCAL LAW ENFORCEMENT OFFICER BEFORE ANY TRANSACTION.WARNING: FUNDS LOST DUE TO USER ERROR OR FRAUD MAY NOT BE RECOVERABLE. TRANSACTIONS CONDUCTED ON THIS VIRTUAL CURRENCY KIOSK ARE IRREVERSIBLE. I UNDERSTAND THESE RISKS AND WISH TO CONTINUE WITH CONDUCTING MY VIRTUAL CURRENCY KIOSK TRANSACTION. PROTECT YOURSELF FROM FRAUD. NEVER SEND MONEY TO SOMEONE YOU DO NOT KNOW.(ii) Virtual currency is not backed or insured by the government, and accounts and value balances are not subject to protections of the Federal Deposit Insurance Corporation, National Credit Union Administration, or Securities Investor Protection Corporation;(iii) A virtual currency transaction may be deemed to be made when recorded on a public ledger, which may not be the date or time when the customer initiates the virtual currency transaction;(iv) The value of virtual currency may be derived from the continued willingness of market participants to exchange fiat currency for virtual currency, which may result in the permanent and total loss of the value of a particular virtual currency if the market for that virtual currency disappears;(v) The volatility and unpredictability of the price of virtual currency relative to fiat currency may result in a significant loss over a short period of time;(vi) A bond maintained by the virtual currency kiosk operator for the benefit of the customers of the virtual currency kiosk operator may not be sufficient to cover all losses incurred by customers; and(vii) Virtual currency transactions are irreversible and may be used by a person seeking to defraud customers. As used in this subparagraph (vii), “seeking to defraud customers” includes, but is not limited to:1. Impersonating a customer’s family or friends;2. Threatening jail time;3. Stating that a customer’s identity has been stolen;4. Insisting that a customer withdraw money from the customer’s bank account and purchase virtual currency; or5. Alleging that a customer’s personal computer has been hacked.
(a) The virtual currency kiosk operator, in establishing a relationship with a customer and before entering into an initial virtual currency kiosk transaction for, on behalf of or with the customer, shall disclose in clear, conspicuous and legible writing, both: (i) in English; and (ii) in the language principally used by the licensee or authorized delegate to advertise, solicit or negotiate, either orally or in writing, for a transaction conducted in person, electronically or by phone, if other than English; all material risks generally associated with virtual currency.
(b) The material risks associated with virtual currency required to be disclosed under paragraph (a) of this subsection (1) include, but are not limited to:(i) A disclosure that is acknowledged by the customer and provided separately from the disclosures provided under subparagraphs (ii) and (vii) of this paragraph (b), and written prominently and in bold type, stating the following:WARNING: CONSUMER FRAUD OFTEN STARTS WITH CONTACT FROM A STRANGER WHO IS INITIATING A DISHONEST SCHEME. I UNDERSTAND THAT CRIMINAL ACTIVITY MAY APPEAR IN MANY FORMS, INCLUDING:(1) Claims of a frozen bank account or credit card.(2) Fraudulent bank transactions.(3) Claims of identity theft or job offerings in exchange for payments.(4) Requests for payments 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 popups, 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 A LOCAL LAW ENFORCEMENT OFFICER BEFORE ANY TRANSACTION.WARNING: FUNDS LOST DUE TO USER ERROR OR FRAUD MAY NOT BE RECOVERABLE. TRANSACTIONS CONDUCTED ON THIS VIRTUAL CURRENCY KIOSK ARE IRREVERSIBLE. I UNDERSTAND THESE RISKS AND WISH TO CONTINUE WITH CONDUCTING MY VIRTUAL CURRENCY KIOSK TRANSACTION. PROTECT YOURSELF FROM FRAUD. NEVER SEND MONEY TO SOMEONE YOU DO NOT KNOW.(ii) Virtual currency is not backed or insured by the government, and accounts and value balances are not subject to protections of the Federal Deposit Insurance Corporation, National Credit Union Administration, or Securities Investor Protection Corporation;(iii) A virtual currency transaction may be deemed to be made when recorded on a public ledger, which may not be the date or time when the customer initiates the virtual currency transaction;(iv) The value of virtual currency may be derived from the continued willingness of market participants to exchange fiat currency for virtual currency, which may result in the permanent and total loss of the value of a particular virtual currency if the market for that virtual currency disappears;(v) The volatility and unpredictability of the price of virtual currency relative to fiat currency may result in a significant loss over a short period of time;(vi) A bond maintained by the virtual currency kiosk operator for the benefit of the customers of the virtual currency kiosk operator may not be sufficient to cover all losses incurred by customers; and(vii) Virtual currency transactions are irreversible and may be used by a person seeking to defraud customers. As used in this subparagraph (vii), “seeking to defraud customers” includes, but is not limited to:1. Impersonating a customer’s family or friends;2. Threatening jail time;3. Stating that a customer’s identity has been stolen;4. Insisting that a customer withdraw money from the customer’s bank account and purchase virtual currency; or5. Alleging that a customer’s personal computer has been hacked.
(i) A disclosure that is acknowledged by the customer and provided separately from the disclosures provided under subparagraphs (ii) and (vii) of this paragraph (b), and written prominently and in bold type, stating the following:WARNING: CONSUMER FRAUD OFTEN STARTS WITH CONTACT FROM A STRANGER WHO IS INITIATING A DISHONEST SCHEME. I UNDERSTAND THAT CRIMINAL ACTIVITY MAY APPEAR IN MANY FORMS, INCLUDING:(1) Claims of a frozen bank account or credit card.(2) Fraudulent bank transactions.(3) Claims of identity theft or job offerings in exchange for payments.(4) Requests for payments 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 popups, 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 A LOCAL LAW ENFORCEMENT OFFICER BEFORE ANY TRANSACTION.WARNING: FUNDS LOST DUE TO USER ERROR OR FRAUD MAY NOT BE RECOVERABLE. TRANSACTIONS CONDUCTED ON THIS VIRTUAL CURRENCY KIOSK ARE IRREVERSIBLE. I UNDERSTAND THESE RISKS AND WISH TO CONTINUE WITH CONDUCTING MY VIRTUAL CURRENCY KIOSK TRANSACTION. PROTECT YOURSELF FROM FRAUD. NEVER SEND MONEY TO SOMEONE YOU DO NOT KNOW.
WARNING: CONSUMER FRAUD OFTEN STARTS WITH CONTACT FROM A STRANGER WHO IS INITIATING A DISHONEST SCHEME. I UNDERSTAND THAT CRIMINAL ACTIVITY MAY APPEAR IN MANY FORMS, INCLUDING:(1) Claims of a frozen bank account or credit card.(2) Fraudulent bank transactions.(3) Claims of identity theft or job offerings in exchange for payments.(4) Requests for payments 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 popups, 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.
(1) Claims of a frozen bank account or credit card.
(2) Fraudulent bank transactions.
(3) Claims of identity theft or job offerings in exchange for payments.
(4) Requests for payments 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 popups, 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 A LOCAL LAW ENFORCEMENT OFFICER BEFORE ANY TRANSACTION.
WARNING: FUNDS LOST DUE TO USER ERROR OR FRAUD MAY NOT BE RECOVERABLE. TRANSACTIONS CONDUCTED ON THIS VIRTUAL CURRENCY KIOSK ARE IRREVERSIBLE. I UNDERSTAND THESE RISKS AND WISH TO CONTINUE WITH CONDUCTING MY VIRTUAL CURRENCY KIOSK TRANSACTION. PROTECT YOURSELF FROM FRAUD. NEVER SEND MONEY TO SOMEONE YOU DO NOT KNOW.
(ii) Virtual currency is not backed or insured by the government, and accounts and value balances are not subject to protections of the Federal Deposit Insurance Corporation, National Credit Union Administration, or Securities Investor Protection Corporation;
(iii) A virtual currency transaction may be deemed to be made when recorded on a public ledger, which may not be the date or time when the customer initiates the virtual currency transaction;
(iv) The value of virtual currency may be derived from the continued willingness of market participants to exchange fiat currency for virtual currency, which may result in the permanent and total loss of the value of a particular virtual currency if the market for that virtual currency disappears;
(v) The volatility and unpredictability of the price of virtual currency relative to fiat currency may result in a significant loss over a short period of time;
(vi) A bond maintained by the virtual currency kiosk operator for the benefit of the customers of the virtual currency kiosk operator may not be sufficient to cover all losses incurred by customers; and
(vii) Virtual currency transactions are irreversible and may be used by a person seeking to defraud customers. As used in this subparagraph (vii), “seeking to defraud customers” includes, but is not limited to:1. Impersonating a customer’s family or friends;2. Threatening jail time;3. Stating that a customer’s identity has been stolen;4. Insisting that a customer withdraw money from the customer’s bank account and purchase virtual currency; or5. Alleging that a customer’s personal computer has been hacked.
1. Impersonating a customer’s family or friends;
2. Threatening jail time;
3. Stating that a customer’s identity has been stolen;
4. Insisting that a customer withdraw money from the customer’s bank account and purchase virtual currency; or
5. Alleging that a customer’s personal computer has been hacked.
(2) (a) A virtual currency kiosk operator, when opening an account for a new customer and before entering into an initial virtual currency transaction for, on behalf of, or with the customer, shall disclose in clear, conspicuous and legible writing, using not less than twenty-four (24) point sans-serif-type font, both: (i) in English; and (ii) in the language principally used by the licensee or authorized delegate to advertise, solicit or negotiate, either orally or in writing, for a transaction conducted in person, electronically or by phone, if other than English; using not less than twenty-four (24) point sans-serif-type font, all relevant terms and conditions associated with the products, services and activities of the virtual currency kiosk operator and virtual currency generally.(b) The disclosure required under paragraph (a) of this subsection (2) shall include, but is not limited to:(i) The customer’s liability for unauthorized virtual currency transactions;(ii) The customer’s right to stop payment of a preauthorized virtual currency transfer and the procedure used to initiate a stop-payment order;(iii) The circumstances under which the virtual currency kiosk operator, absent a court or government order, will disclose information concerning the customer’s account to third parties;(iv) The requirement that the virtual currency kiosk operator communicate to the customer what customer information may be disclosed to third parties;(v) The customer’s right to receive a receipt for a virtual currency transaction at the time of the transaction;(vi) Upon a change in the rules or policies of the operator, the customer’s right to consent to the changed rules or policies before performing a transaction after the change; and(vii) Any other disclosures that are customarily provided in connection with opening a person’s account.
(a) A virtual currency kiosk operator, when opening an account for a new customer and before entering into an initial virtual currency transaction for, on behalf of, or with the customer, shall disclose in clear, conspicuous and legible writing, using not less than twenty-four (24) point sans-serif-type font, both: (i) in English; and (ii) in the language principally used by the licensee or authorized delegate to advertise, solicit or negotiate, either orally or in writing, for a transaction conducted in person, electronically or by phone, if other than English; using not less than twenty-four (24) point sans-serif-type font, all relevant terms and conditions associated with the products, services and activities of the virtual currency kiosk operator and virtual currency generally.
(b) The disclosure required under paragraph (a) of this subsection (2) shall include, but is not limited to:(i) The customer’s liability for unauthorized virtual currency transactions;(ii) The customer’s right to stop payment of a preauthorized virtual currency transfer and the procedure used to initiate a stop-payment order;(iii) The circumstances under which the virtual currency kiosk operator, absent a court or government order, will disclose information concerning the customer’s account to third parties;(iv) The requirement that the virtual currency kiosk operator communicate to the customer what customer information may be disclosed to third parties;(v) The customer’s right to receive a receipt for a virtual currency transaction at the time of the transaction;(vi) Upon a change in the rules or policies of the operator, the customer’s right to consent to the changed rules or policies before performing a transaction after the change; and(vii) Any other disclosures that are customarily provided in connection with opening a person’s account.
(i) The customer’s liability for unauthorized virtual currency transactions;
(ii) The customer’s right to stop payment of a preauthorized virtual currency transfer and the procedure used to initiate a stop-payment order;
(iii) The circumstances under which the virtual currency kiosk operator, absent a court or government order, will disclose information concerning the customer’s account to third parties;
(iv) The requirement that the virtual currency kiosk operator communicate to the customer what customer information may be disclosed to third parties;
(v) The customer’s right to receive a receipt for a virtual currency transaction at the time of the transaction;
(vi) Upon a change in the rules or policies of the operator, the customer’s right to consent to the changed rules or policies before performing a transaction after the change; and
(vii) Any other disclosures that are customarily provided in connection with opening a person’s account.
(3) (a) A virtual currency kiosk operator, before each transaction in virtual currency for, on behalf of, or with a customer, shall disclose to the customer in an easily readable manner that is in clear, conspicuous and legible writing, using not less than twenty-four (24) point sans-serif-type font, both: (i) in English; and (ii) in the language principally used by the licensee or authorized delegate to advertise, solicit or negotiate, either orally or in writing, for a transaction conducted in person, electronically or by phone, if other than English; the terms and conditions of the virtual currency transaction.(b) The terms and conditions required under paragraph (a) of this subsection (3) shall include, but are not limited to:(i) The amount of the transaction;(ii) The total amount of all fees, expenses, commissions and charges borne by the customer, including, but not limited to, applicable exchange rates, displayed both as a dollar amount and as a percentage of the transaction;(iii) The type and nature of the virtual currency transaction;(iv) A warning that, once executed, the virtual currency transaction may not be undone, if applicable;(v) A daily virtual currency transaction limit;(vi) The difference in the sale price of the virtual currency versus the current market price; and(vii) Any other disclosures that are customarily given in connection with a virtual currency transaction.
(a) A virtual currency kiosk operator, before each transaction in virtual currency for, on behalf of, or with a customer, shall disclose to the customer in an easily readable manner that is in clear, conspicuous and legible writing, using not less than twenty-four (24) point sans-serif-type font, both: (i) in English; and (ii) in the language principally used by the licensee or authorized delegate to advertise, solicit or negotiate, either orally or in writing, for a transaction conducted in person, electronically or by phone, if other than English; the terms and conditions of the virtual currency transaction.
(b) The terms and conditions required under paragraph (a) of this subsection (3) shall include, but are not limited to:(i) The amount of the transaction;(ii) The total amount of all fees, expenses, commissions and charges borne by the customer, including, but not limited to, applicable exchange rates, displayed both as a dollar amount and as a percentage of the transaction;(iii) The type and nature of the virtual currency transaction;(iv) A warning that, once executed, the virtual currency transaction may not be undone, if applicable;(v) A daily virtual currency transaction limit;(vi) The difference in the sale price of the virtual currency versus the current market price; and(vii) Any other disclosures that are customarily given in connection with a virtual currency transaction.
(i) The amount of the transaction;
(ii) The total amount of all fees, expenses, commissions and charges borne by the customer, including, but not limited to, applicable exchange rates, displayed both as a dollar amount and as a percentage of the transaction;
(iii) The type and nature of the virtual currency transaction;
(iv) A warning that, once executed, the virtual currency transaction may not be undone, if applicable;
(v) A daily virtual currency transaction limit;
(vi) The difference in the sale price of the virtual currency versus the current market price; and
(vii) Any other disclosures that are customarily given in connection with a virtual currency transaction.
(4) A virtual currency kiosk operator shall ensure that each customer acknowledges receipt of all disclosures required under this section.
(5) (a) Before the acceptance of any cash or funding for a virtual currency transaction, a virtual currency kiosk operator must require every customer, regardless of age, to respond to the following requests:(i) Enter the name, job title, and employer or company represented by the person instructing you to use this machine.(ii) If no one is instructing you to use this machine, click the box that says “I am not on the phone with anyone,” and enter the purpose for which you are buying virtual currency.(b) Additionally, the virtual currency kiosk operator must require the customer to answer at least five (5) of the following questions, which shall be generated randomly so that the same five (5) questions do not appear before each transaction:(i) “Are you sending this money in response to a demand for payment to unfreeze a bank account, investment account or credit card?”(ii) “Are you sending this money to someone offering a job or some other financial benefit, such as the purchase of lottery tickets, sweepstakes entries or prize drawings?”(iii) “Are you sending this money to someone claiming to be a representative of a financial institution, such as a bank, mortgage company or loan company, or a bill collector?”(iv) “Are you sending this money to someone claiming to be a law enforcement officer or representative of a government agency?”(v) “Are you sending this money to someone claiming to represent a disaster relief organization or some other type of charitable organization?”(vi) “Are you sending this money in response to a prompt from a popup message on your computer desktop, an email, a text message, a telephone call, or some other communication from an unknown merchant containing computer virus or fraud warnings?”(vii) “Are you sending this money to someone posing as a romantic partner or potential business partner whom you have never met in a face-to-face, in-person meeting?”(viii) “Are you sending this money to someone threatening you or a relative or loved one with arrest, fines, fees, a lawsuit, foreclosure or repossession?”(ix) “Are you sending this money in response to a threat of any kind, including physical, financial or reputational harm, to you, a relative or a loved one?”(c) Each question must appear separately and require a response via an on-screen prompt, except as provided for elder adults in Section 75-14-65, before proceeding to the next question. If the customer enters a name in response to the request in paragraph (a)(i) of this subsection (5), or responds with “yes” or with a similar affirmative answer to any question asked under paragraph (b) of this subsection (5):(i) The transaction shall be declined and voided upon completion of the questions;(ii) The virtual currency kiosk must display a “Fraud Warning” that instructs the customer to contact local law enforcement; and(iii) The virtual currency kiosk operator shall not collect any fees or funds from the customer.(d) The security questions provided in paragraphs (a) and (b) of this subsection (5) shall be implemented by all virtual currency kiosk operators no later than January 1, 2027.
(a) Before the acceptance of any cash or funding for a virtual currency transaction, a virtual currency kiosk operator must require every customer, regardless of age, to respond to the following requests:(i) Enter the name, job title, and employer or company represented by the person instructing you to use this machine.(ii) If no one is instructing you to use this machine, click the box that says “I am not on the phone with anyone,” and enter the purpose for which you are buying virtual currency.
(i) Enter the name, job title, and employer or company represented by the person instructing you to use this machine.
(ii) If no one is instructing you to use this machine, click the box that says “I am not on the phone with anyone,” and enter the purpose for which you are buying virtual currency.
(b) Additionally, the virtual currency kiosk operator must require the customer to answer at least five (5) of the following questions, which shall be generated randomly so that the same five (5) questions do not appear before each transaction:(i) “Are you sending this money in response to a demand for payment to unfreeze a bank account, investment account or credit card?”(ii) “Are you sending this money to someone offering a job or some other financial benefit, such as the purchase of lottery tickets, sweepstakes entries or prize drawings?”(iii) “Are you sending this money to someone claiming to be a representative of a financial institution, such as a bank, mortgage company or loan company, or a bill collector?”(iv) “Are you sending this money to someone claiming to be a law enforcement officer or representative of a government agency?”(v) “Are you sending this money to someone claiming to represent a disaster relief organization or some other type of charitable organization?”(vi) “Are you sending this money in response to a prompt from a popup message on your computer desktop, an email, a text message, a telephone call, or some other communication from an unknown merchant containing computer virus or fraud warnings?”(vii) “Are you sending this money to someone posing as a romantic partner or potential business partner whom you have never met in a face-to-face, in-person meeting?”(viii) “Are you sending this money to someone threatening you or a relative or loved one with arrest, fines, fees, a lawsuit, foreclosure or repossession?”(ix) “Are you sending this money in response to a threat of any kind, including physical, financial or reputational harm, to you, a relative or a loved one?”
(i) “Are you sending this money in response to a demand for payment to unfreeze a bank account, investment account or credit card?”
(ii) “Are you sending this money to someone offering a job or some other financial benefit, such as the purchase of lottery tickets, sweepstakes entries or prize drawings?”
(iii) “Are you sending this money to someone claiming to be a representative of a financial institution, such as a bank, mortgage company or loan company, or a bill collector?”
(iv) “Are you sending this money to someone claiming to be a law enforcement officer or representative of a government agency?”
(v) “Are you sending this money to someone claiming to represent a disaster relief organization or some other type of charitable organization?”
(vi) “Are you sending this money in response to a prompt from a popup message on your computer desktop, an email, a text message, a telephone call, or some other communication from an unknown merchant containing computer virus or fraud warnings?”
(vii) “Are you sending this money to someone posing as a romantic partner or potential business partner whom you have never met in a face-to-face, in-person meeting?”
(viii) “Are you sending this money to someone threatening you or a relative or loved one with arrest, fines, fees, a lawsuit, foreclosure or repossession?”
(ix) “Are you sending this money in response to a threat of any kind, including physical, financial or reputational harm, to you, a relative or a loved one?”
(c) Each question must appear separately and require a response via an on-screen prompt, except as provided for elder adults in Section 75-14-65, before proceeding to the next question. If the customer enters a name in response to the request in paragraph (a)(i) of this subsection (5), or responds with “yes” or with a similar affirmative answer to any question asked under paragraph (b) of this subsection (5):(i) The transaction shall be declined and voided upon completion of the questions;(ii) The virtual currency kiosk must display a “Fraud Warning” that instructs the customer to contact local law enforcement; and(iii) The virtual currency kiosk operator shall not collect any fees or funds from the customer.
(i) The transaction shall be declined and voided upon completion of the questions;
(ii) The virtual currency kiosk must display a “Fraud Warning” that instructs the customer to contact local law enforcement; and
(iii) The virtual currency kiosk operator shall not collect any fees or funds from the customer.
(d) The security questions provided in paragraphs (a) and (b) of this subsection (5) shall be implemented by all virtual currency kiosk operators no later than January 1, 2027.