HB 2387 — cryptocurrency kiosk; license; fraud prevention

HouseSenate Engrossed House Bill cryptocurrency kiosk;

fraud prevention State of Arizona House of Representatives Fifty-seventh Legislature First Regular Session CHAPTER 171 HOUSE BILL 2387 AN ACT AMENDING TITLE 6, CHAPTER 12, ARTICLE 1, ARIZONA REVISED STATUTES, BY ADDING SECTION 6-1236;

attorneydisclosures; general;

receipt;

refunds;

enforcement;

A CRYPTOCURRENCY KIOSK OPERATOR SHALL PROVIDE THE FOLLOWING DISCLOSURES SEPARATELY IN A FONT THAT CONTRASTS WITH THE BACKGROUND WHERE THE WRITTEN WARNING APPEARS AND THE CUSTOMER MUST ACCEPT THE TWO SEPARATE DISCLOSURES BEFORE EXECUTING A CRYPTOCURRENCY TRANSACTION.KIOSK TRANSACTION:

ON THE COMPLETION OF EACH CRYPTOCURRENCY KIOSK TRANSACTION, THE CRYPTOCURRENCY KIOSK OPERATOR SHALL PROVIDE ANTHE INDIVIDUAL WHO MADE THE TRANSACTION AT THE CRYPTOCURRENCY KIOSK WITH A PHYSICAL OR DIGITAL RECEIPT IN THE LANGUAGE CHOSEN BY THE INDIVIDUAL THAT CONTAINS ALL OF THE FOLLOWING INFORMATION:

A CRYPTOCURRENCY KIOSK OPERATOR SHALL USE BLOCKCHAIN ANALYTICS AND TRACING SOFTWARE TO HELP PREVENT FRAUD BY NOT SENDING PURCHASED VIRTUAL CURRENCY FROM A CRYPTOCURRENCY KIOSK OPERATOR TO A VIRTUAL WALLET KNOWN TO BE AFFILIATED WITH FRAUD AT THE TIME OF A TRANSACTION.

FOR EXISTING CUSTOMERS, A CRYPTOCURRENCY KIOSK OPERATOR SHALL ENSURE THAT THE CRYPTOCURRENCY KIOSK DOES NOT, IN CONNECTION WITH CRYPTOCURRENCY SERVICES FOR A SINGLE PERSON IN THIS STATE USING ONE OR MORE CRYPTOCURRENCY KIOSKS, ACCEPT OR DISPENSE IN A SINGLE DAY MORE THAN $5,000.$10,500.

IF A NEW CUSTOMER AS DEFINED IN SUBSECTION L, PARAGRAPH 7 OF THIS SECTION HAS BEEN FRAUDULENTLY INDUCED TO ENGAGE IN A CRYPTOCURRENCY KIOSK TRANSACTION, THE ATTORNEYCRYPTOCURRENCY GENERALKIOSK OPERATOR SHALL ENFORCEISSUE THISA SECTION.FULL REFUND FOR THE FRAUDULENTLY INDUCED CRYPTOCURRENCY KIOSK TRANSACTION, INCLUDING ANY FEES CHARGED IN ASSOCIATION WITH THE TRANSACTION, IF THE NEW CUSTOMER DOES ALL OF THE FOLLOWING:

ANY1. ACT OR PRACTICE THAT VIOLATES THIS SECTION IS A VIOLATION OF SECTION 44-1522.

CONTACTS THE CRYPTOCURRENCY KIOSK OPERATOR WITHIN THIRTY DAYS AFTER THE CRYPTOCURRENCY KIOSK TRANSACTION.

2.

CONTACTS A LAW ENFORCEMENT AGENCY OR THE ATTORNEY GENERAL WITHIN THIRTY DAYS AFTER THE CRYPTOCURRENCY KIOSK TRANSACTION.

3.

PROVIDES THE CRYPTOCURRENCY KIOSK OPERATOR WITH A REPORT FROM THE LAW ENFORCEMENT AGENCY OR ATTORNEY GENERAL'S OFFICE THAT DETERMINES THAT THE NEW CUSTOMER WAS FRAUDULENTLY INDUCED TO ENGAGE IN A CRYPTOCURRENCY KIOSK TRANSACTION.

NOTWITHSTANDINGA ANYVICTIM OTHEROF PROVISIONFRAUD OFIS LAW,ELIGIBLE ALLTO INDIVIDUALSRECEIVE ORA ENTITIESREFUND SUBJECTEVEN TOIF THISA STATUTECRYPTOCURRENCY SHALLKIOSK BEOPERATOR CLASSIFIEDPROVIDES ASTHE AREQUIRED NEWDISCLOSURES CUSTOMERPRESCRIBED FORIN THESUBSECTIONS PURPOSESA AND B OF COMPLIANCETHIS UPONSECTION AND THE EFFECTIVERECEIPT DATEPRESCRIBED IN SUBSECTION C OF THIS LEGISLATION.SECTION.

A NEW CUSTOMER AUTOMATICALLY CONVERTS TO AN EXISTING CUSTOMER SEVENTY-TWO HOURS AFTER BECOMING A NEW CUSTOMER.

AN EXISTING CUSTOMER IS SUBJECT TO THE TRANSACTION LIMITS PRESCRIBED IN THIS ACT.

THE ATTORNEY GENERAL SHALL ENFORCE THIS SECTION.

ANY ACT OR PRACTICE THAT VIOLATES THIS SECTION IS A VIOLATION OF SECTION 44-1522.

K.

NOTWITHSTANDING ANY OTHER LAW, ALL INDIVIDUALS OR ENTITIES SUBJECT TO THIS SECTION SHALL BE CLASSIFIED AS A NEW CUSTOMER FOR THE PURPOSES OF COMPLIANCE ON THE EFFECTIVE DATE OF THIS SECTION.

A NEW CUSTOMER AUTOMATICALLY CONVERTS TO AN EXISTING CUSTOMER TEN DAYS AFTER BECOMING A NEW CUSTOMER.

AN EXISTING CUSTOMER IS SUBJECT TO THE TRANSACTION LIMITS PRESCRIBED IN THIS SECTION.

L.

(a) MEANS A PHYSICAL, ELECTRONIC TERMINAL THAT IS A MECHANICAL AGENT OF THE CRYPTOCURRENCY KIOSK OPERATOR AND THAT ENABLES A CRYPTOCURRENCY KIOSK OPERATOR TO FACILITATE THE PURCHASE, SALE OR EXCHANGE OF CRYPTOCURRENCY FOR MONEY, BANK CREDIT OR ANY OTHER VIRTUAL CURRENCY.

(b)- THAT3 OPERATES- ORH.B. MANAGES A MONEY TRANSMISSION KIOSK WHERE VIRTUAL CURRENCY BUSINESS ACTIVITY IS OFFERED IN THIS STATE.

2387 (b) THAT OPERATES OR MANAGES A MONEY TRANSMISSION KIOSK WHERE VIRTUAL CURRENCY BUSINESS ACTIVITY IS OFFERED IN THIS STATE.

"EXISTING CUSTOMER" MEANS A CONSUMER TRANSACTING AT A CRYPTOCURRENCY KIOSK IN THIS STATE WHO HAS BEEN A CUSTOMER WITH A CRYPTOCURRENCY KIOSK OPERATOR FOR MOREAT THANLEAST SEVENTY-TWOTEN HOURS.DAYS.

"NEW CUSTOMER" MEANS A CONSUMER TRANSACTING AT A CRYPTOCURRENCY KIOSK IN THIS STATE WHO HAS BEEN A CUSTOMER OF A CRYPTOCURRENCY KIOSK OPERATOR FOR FEWERLESS THAN SEVENTY-TWOTEN HOURS.DAYS.

"TRANSACTION HASH" MEANS A UNIQUE IDENTIFIER MADE UP OF A STRING OF CHARACTERS THAT ACTACTS AS A RECORD OF,OF AND PROVIDEPROVIDES PROOF THAT,THAT THE TRANSACTION WAS VERIFIED AND ADDED TO THE BLOCKCHAIN.

-9. 3 - H.B.

2387 9.

APPROVED BY THE GOVERNOR MAY 12, 2025.

FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 12, 2025.