(1) As used in this section, the following terms have the meanings as defined in this subsection:(a) “Live screening” means a real-time, audio-visual interaction between the customer at the virtual currency kiosk and a live representative of the virtual currency kiosk operator, conducted via a camera and microphone integrated into the virtual currency kiosk.(b) “Third-party coaching” means an interaction between a customer and a third party during which the customer communicates with, or receives instructions from, a third party via telephone or other electronic device during the course of a virtual currency kiosk transaction.
(a) “Live screening” means a real-time, audio-visual interaction between the customer at the virtual currency kiosk and a live representative of the virtual currency kiosk operator, conducted via a camera and microphone integrated into the virtual currency kiosk.
(b) “Third-party coaching” means an interaction between a customer and a third party during which the customer communicates with, or receives instructions from, a third party via telephone or other electronic device during the course of a virtual currency kiosk transaction.
(2) Upon the request of a customer, a virtual currency kiosk operator shall issue a refund to a new customer for the full amount of all transactions made within the fourteen-day new customer time period. In order to receive a refund under this subsection (2), a new customer must have:(a) Been fraudulently induced to engage in the virtual currency transactions;(b) Contacted both the virtual currency kiosk operator and a government or law enforcement entity to inform them of the fraudulent nature of the transaction agency within ninety (90) days of the last transaction to occur during the fourteen-day new customer time period; and(c) Submitted proof of the fraud incident, such as a police report or sworn declaration detailing the fraudulent nature of the transaction or transactions.
(a) Been fraudulently induced to engage in the virtual currency transactions;
(b) Contacted both the virtual currency kiosk operator and a government or law enforcement entity to inform them of the fraudulent nature of the transaction agency within ninety (90) days of the last transaction to occur during the fourteen-day new customer time period; and
(c) Submitted proof of the fraud incident, such as a police report or sworn declaration detailing the fraudulent nature of the transaction or transactions.
(3) Each virtual currency kiosk operator shall:(a) Obtain a copy of a government-issued identification card that identifies each customer of the virtual currency kiosk operator;(b) Maintain restrictions that prevent more than one (1) customer of the virtual currency kiosk operator from using the same virtual currency wallet; and(c) Be able to prevent virtual currency wallets that have been flagged as potentially connected to fraudulent or other criminal activity from being used at a virtual currency kiosk owned or operated by the virtual currency kiosk operator.
(a) Obtain a copy of a government-issued identification card that identifies each customer of the virtual currency kiosk operator;
(b) Maintain restrictions that prevent more than one (1) customer of the virtual currency kiosk operator from using the same virtual currency wallet; and
(c) Be able to prevent virtual currency wallets that have been flagged as potentially connected to fraudulent or other criminal activity from being used at a virtual currency kiosk owned or operated by the virtual currency kiosk operator.
(4) All virtual currency kiosks operators shall use blockchain analytics software to assist in the prevention of sending purchased virtual currency from a kiosk to a digital wallet known to be affiliated with fraudulent, sanctioned or illicit activity at the time of a transaction. The commissioner may request evidence from any operator of current use of blockchain analytics.
(5) All virtual currency kiosk operators shall take reasonable steps to detect and prevent fraud, including establishing and maintaining a written anti-fraud policy, which shall include, but not be limited to, 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; and(d) Procedures for the periodic evaluation and revision of the anti-fraud procedures, controls and monitoring mechanisms.
(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; and
(d) Procedures for the periodic evaluation and revision of the anti-fraud procedures, controls and monitoring mechanisms.
(6) All virtual currency kiosk operators shall offer, during the hours of operation of the virtual currency kiosks owned or operated by the virtual currency kiosk operator, live customer support by telephone from a toll-free telephone number prominently displayed at or on the virtual currency kiosk.
(7) All virtual currency kiosk operators shall designate a customer service representative to identify and speak by telephone with an elder adult who is a new customer before the elder adult who is a new customer completes his or her first virtual currency transaction with the virtual currency kiosk operator. During the communication, which shall be recorded and retained by the virtual currency kiosk operator, the virtual currency kiosk operator shall:(a) Reconfirm any attestations made by the new customer at a virtual currency kiosk owned or operated by the virtual currency kiosk operator;(b) Discuss the transaction;(c) Discuss types of fraudulent schemes relating to virtual currency;(d) Identify, through live screening or automated monitoring, whether an elder adult is engaging in or receiving third-party coaching; and(e) Identify, through live screening or automated monitoring, whether an elder adult is on the phone or using a headset during the virtual currency kiosk transaction.
(a) Reconfirm any attestations made by the new customer at a virtual currency kiosk owned or operated by the virtual currency kiosk operator;
(b) Discuss the transaction;
(c) Discuss types of fraudulent schemes relating to virtual currency;
(d) Identify, through live screening or automated monitoring, whether an elder adult is engaging in or receiving third-party coaching; and
(e) Identify, through live screening or automated monitoring, whether an elder adult is on the phone or using a headset during the virtual currency kiosk transaction.
The virtual currency kiosk operator’s approval of the transaction shall be dependent upon the virtual currency kiosk operator’s assessment of the communication.
(8) All virtual currency kiosk operators shall designate and employ a chief compliance officer who shall:(a) Be qualified to coordinate and monitor a compliance program to ensure compliance with this section and all other applicable federal laws and regulations and state laws and rules;(b) Not own more than twenty percent (20%) of the virtual currency kiosk operator that employs the officer; and(c) Use full-time employees to fulfill the virtual currency kiosk operator’s compliance responsibilities under federal laws and regulations and state laws and rules.
(a) Be qualified to coordinate and monitor a compliance program to ensure compliance with this section and all other applicable federal laws and regulations and state laws and rules;
(b) Not own more than twenty percent (20%) of the virtual currency kiosk operator that employs the officer; and
(c) Use full-time employees to fulfill the virtual currency kiosk operator’s compliance responsibilities under federal laws and regulations and state laws and rules.
(9) If the virtual currency kiosk operator determines, through live screening or automated monitoring, that a customer who is an elder adult is on the phone or using a headset during the virtual currency kiosk transaction:(a) The virtual currency kiosk transaction must be immediately halted and voided;(b) The virtual currency kiosk operator shall refuse to process any further virtual currency kiosk transactions for that customer for a period of no less than twenty-four (24) hours; and(c) The virtual currency kiosk operator shall preserve and retain a record of the declined virtual currency kiosk transaction and the reason for the decline.
(a) The virtual currency kiosk transaction must be immediately halted and voided;
(b) The virtual currency kiosk operator shall refuse to process any further virtual currency kiosk transactions for that customer for a period of no less than twenty-four (24) hours; and
(c) The virtual currency kiosk operator shall preserve and retain a record of the declined virtual currency kiosk transaction and the reason for the decline.