AB384: Bill Text

AB384,2,7 (b) “Transaction” means a transaction conducted by means of a virtual currency kiosk.

AB384,2,8 (c) “Virtual currency” has the meaning given in s. 177.01 (16).

AB384,2,12 (d) “Virtual currency kiosk" means an electronic terminal or retail location, in this state, from which a person may exchange fiat currency for virtual currency or virtual currency for fiat currency or other virtual currency, including by connecting to a separate virtual currency exchange.

AB384,3,2 (e) “Virtual currency kiosk operator" means a person engaged in the business of operating virtual currency kiosks in this state.

AB384,3,5 (2) License required. No person may engage in the business of operating virtual currency kiosks in this state unless the person is licensed under this chapter.

AB384,3,8 (3) Warning. (a) A virtual currency kiosk operator shall affix to the front of each virtual currency kiosk, within the customer’s field of vision, the following printed warning, capitalized as indicated:

AB384,3,16 “FRAUD ALERT! Criminals seek to defraud virtual currency customers by impersonating loved ones, government officials, law enforcement officers, or charities; threatening jail time; stating that your identity was stolen or your accounts frozen; or claiming your computer was hacked. IF SOMEONE YOU DON’T KNOW IS ASKING YOU TO SEND VIRTUAL CURRENCY FROM THIS MACHINE, DO NOT PROCEED WITH THE TRANSACTION. LOSSES DUE TO FRAUDULENT OR ACCIDENTAL TRANSACTIONS MAY NOT BE RECOVERABLE.”

AB384,3,21 (b) A virtual currency kiosk operator shall ensure that, as part of each virtual currency kiosk transaction, the warning under par. (a) is also displayed electronically on the virtual currency kiosk screen before any other disclosure appears on the screen and that the customer affirmatively acknowledges the warning before the customer may proceed with the transaction.

AB384,3,23 (c) The warning affixed to the front of a virtual currency kiosk under par. (a) shall be printed in type size no smaller than 20 point.

AB384,4,2 (4) Customer identification. (a) Collection of information. Before entering into an initial transaction with an individual, a virtual currency kiosk operator shall verify the individual’s identity by doing all of the following:

AB384,4,3 1. Collecting all of the following information pertaining to the individual:

AB384,4,4 a. Full legal name.

AB384,4,5 b. Date of birth.

AB384,4,6 c. Telephone number.

AB384,4,7 d. Residence address.

AB384,4,8 e. Email address.

AB384,4,10 2. Obtaining a copy of the individual’s driver’s license, passport, or other government-issued identification document that identifies the individual.

AB384,4,12 (b) Identity verification for each transaction. In each transaction with a customer, a virtual currency kiosk operator shall do all of the following:

AB384,4,14 1. Verify the customer’s identity before accepting payment from or dispensing funds to the customer.

AB384,4,16 2. Take a photograph of the customer in a retainable format at the virtual currency kiosk.

AB384,4,19 (c) False or multiple identities. 1. A virtual currency kiosk operator may not complete a transaction with a customer unless the virtual currency kiosk operator has verified the customer’s identity as provided in par. (b) 1.

AB384,4,23 2. A virtual currency kiosk operator may not allow a customer to engage in a transaction under any name or identity other than the customer's own true name and identity, or under any account other than an account associated with the customer’s true name and identity.

AB384,5,3 (5) Transaction restrictions and refunds. (a) Daily transaction limit. A virtual currency kiosk operator may not accept from or dispense to a customer, by means of any virtual currency kiosk, more than a total of $1,000 in fiat currency in the same day.

AB384,5,9 (b) Fee limit. A virtual currency kiosk operator may not collect fees or other charges from a customer in connection with a transaction that exceed the greater of $5 or 3 percent of the transaction amount. For purposes of this paragraph, “fees or other charges” includes any difference between the price charged to a customer to buy, sell, exchange, or convert virtual currency and the prevailing market value of the virtual currency at the time of the transaction.

AB384,5,12 (c) Refund in certain circumstances. Upon request of a customer, a virtual currency kiosk operator shall issue a refund to the customer for the full amount of any transaction if all of the following apply with respect to the transaction:

AB384,5,13 1. The customer was fraudulently induced to engage in the transaction.

AB384,5,16 2. Not later than 30 days after the transaction, the customer contacted the virtual currency kiosk operator and a government or law enforcement agency to inform them of the fraudulent nature of the transaction.

AB384,2 Section 2. Initial applicability.

AB384,5,20 (1) Customer identification requirements. The treatment of s. 217.12 (4) first applies to transactions occurring on the 60th day after the effective date of this subsection.

AB384,5,21 (end)