,i #aaith ,,congress #b;d ,session ,h4 ,r4 #ibfh ,,in ,,the ,,house ,,of ,,representatives ,june #aa1 #bjbf,mr4 ,casten 7for himself and ,ms4 ,salazar7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to amend the ,bank ,secrecy ,act to require the registration of digital asset kiosk operators and to require such operators to comply with anti-money laundering and anti-fraud requirements1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,stop ,crypto ,,atm ,scams ,act4 #b4 ,registration of digital asset kiosk operators 7a7 ,in general ,section #eccj of title #ca1 ,united ,states ,code1 is amended-- 7#a7 in subsection 7d7-- 7,a7 in paragraph 7#a77;,a71 by inserting 1 any digital asset kiosk operator1 after similar instruments2 and 7,b7 by adding at the end the following3 7#c7 ,digital asset kiosk terms ,the terms digital asset kiosk and digital asset kiosk operator have the meaning given those terms1 respectively1 under section #eccg7;a74 2 and 7#b7 by adding at the end the following3 7f7 ,registration of digital asset kiosk locations 7#a7 ,in general ,the ,secretary of the ,treasury shall require a digital asset kiosk operator-- 7,a7 before beginning to operate a digital asset kiosk1 to submit a list containing the physical address of each digital asset kiosk owned or operated by the digital asset kiosk operator2 and 7,b7 not less than once every #ij days thereafter1 to submit an update to such list4 7#b7 ,form and manner of registration ,each submission by a digital asset kiosk operator pursuant to paragraph 7#a7 shall include-- 7,a7 the legal name of the digital asset kiosk operator2 7,b7 the physical address of each digital asset kiosk owned or operated by the digital asset kiosk operator that is located in the ,united ,states or the territories of the ,united ,states2 7,c7 up-to-date contact information for the digital asset kiosk operator's compliance officer described in section #ecah7;h77#a77;,b72 7,d7 the start date of operation of each digital asset kiosk2 and 7,e7 the end date of operation of each digital asset kiosk1 if applicable4 7#c7 ,false and incomplete information ,the filing of false or materially incomplete information in a submission required under paragraph 7#a7 shall be deemed a failure to comply with the requirements of this subsection4 7#d7 ,public availability ,the ,secretary of the ,treasury shall make all information submitted under this subsection available to the public1 including on a website of the ,department of the ,treasury4 4 7b7 ,rule of application for existing digital asset kiosk operators ,a person who is a digital asset kiosk operator 7as defined in section #eccg7;a7 of title #ca1 ,united ,states ,code7 on the date of enactment of this ,act-- 7#a7 shall1 not later than the end of the #f-month period beginning on the date of enactment of this ,act1 submit the initial list described in such section #eccj7;f77#a77;,a72 and 7#b7 shall1 not later than #ij days after the end of the #f-month period beginning on the date of enactment of this ,act1 submit the first update of such list4 #c4 ,anti-money laundering and anti-fraud requirements for digital asset kiosk operators 7a7 ,in general ,subchapter ,,ii of chapter #ec of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 #eccg4 ,anti-money laundering and anti-fraud requirements for digital asset kiosk operators 7a7 ,definitions ,in this section3 7#a7 ,charge ,the term charge means-- 7,a7 fees or expenses paid by a customer2 and 7,b7 the difference between the market price of a digital asset and the price of the digital asset charged to the customer4 7#b7 ,digital asset ,the term digital asset means any digital representation of value that is issued or transferred using a cryptographically secured distributed ledger1 blockchain technology1 or any other similar technology4 7#c7 ,digital asset kiosk ,the term digital asset kiosk means-- 7,a7 an automated teller machine that facilitates the buying1 selling1 or exchange of digital assets for fiat currency or other digital assets2 or 7,b7 a digital or mobile application that facilitates the buying1 selling1 or exchange of fiat currency for digital assets at a participating physical location in an organized merchant network4 7#d7 ,digital asset kiosk operator ,the term digital asset kiosk operator means a person that owns or operates a digital asset kiosk4 7#e7 ,digital asset wallet ,the term digital asset wallet means a software application or other mechanism that provides a means for holding1 storing1 and transferring digital assets4 7#f7 ,digital asset wallet address ,the term digital asset wallet address means an alphanumeric identifier that is associated with a digital asset wallet and represents a potential destination for a digital asset transfer4 7#g7 ,extended business hours ,the term extended business hours means-- 7,a7 the hours between #h3jj a4m4 and #h3jj p4m4 local time on business days2 and 7,b7 the hours between #i3jj a4m4 and #e3jj p4m4 local time on weekends and holidays4 7#h7 ,market price ,the term market price means1 with respect to a digital asset1 the current market price of a particular digital asset publicly quoted on a digital asset trading platform that is registered with the ,department of the ,treasury for a particular time4 7#i7 ,new customer ,with respect to a digital asset kiosk operator1 a person is a new customer of the digital asset kiosk operator if-- 7,a7 the person has never previously transacted with the digital asset kiosk operator2 or 7,b7 less than #ad days have elapsed since the person entered into their first transaction with the digital asset kiosk operator4 7b7 ,anti-,money laundering program 7#a7 ,in general ,a digital asset kiosk operator shall-- 7,a7 develop1 implement1 and routinely update an anti-money laundering program described in section #ecah7;h71 and file a copy of such program with the ,financial ,crimes ,enforcement ,network2 7,b7 be subject to the requirement to report suspicious transactions described in section #ecah7;g72 and 7,c7 be subject to the requirements described under this subchapter to file currency transaction reports4 7#b7 ,risk-based requirements ,not later than #ahj days after the date of enactment of this section1 the ,secretary of the ,treasury shall issue rules to require a digital asset kiosk operator1 in implementing an anti-money laundering program required under paragraph 7#a77;,a71 to adopt controls that are reasonably designed to-- 7,a7 verify a customer's identity1 including during any online pre-registration process and at the physical digital asset kiosk location2 7,b7 monitor for digital asset kiosk transactions involving a digital asset wallet directly or indirectly associated with any digital asset wallet address listed on any relevant sanctions lists through the use of blockchain analytics tools2 7,c7 assess the risks associated with and the likelihood of future illicit activity in connection with digital asset kiosk transactions through the use of blockchain analytics tools2 and 7,d7 maintain restrictions that prevent more than one customer of such digital asset kiosk operator from using the same digital wallet address4 7c7 ,limits for digital asset kiosk transactions 7#a7 ,daily limits for new customers ,a digital asset kiosk operator may not accept one or more digital asset kiosk transactions on behalf of a new customer that have a total monetary value of more than #b1jjj during a #bd-;hour period4 7#b7 ,total limits for new customers ,a digital asset kiosk operator may not accept digital asset kiosk transactions on behalf of a new customer that have a total monetary value1 in the aggregate1 of more than #aj1jjj4 7#c7 ,daily limits for existing customers ,with respect to a customer that is not a new customer1 a digital asset kiosk operator may not accept one or more digital asset kiosk transactions on behalf of the customer that have a total monetary value of more than #g1ejj during a #bd-;hour period4 7#d7 ,inflation adjustment ,the ,secretary of the ,treasury shall update the dollar amounts in this subsection every #e years to reflect the change in the ,consumer ,price ,index for ,all ,urban ,consumers published by the ,bureau of ,labor ,statistics of the ,department of ,labor4 7#e7 ,rulemaking authority ,the ,secretary of the ,treasury may issue rules to adjust the transaction limit amounts described under this subsection1 as the ,secretary determines are reasonably necessary to deter fraudulent activity and illicit finance4 7d7 ,disclosures for customers 7#a7 ,in general ,a digital asset kiosk operator shall take reasonable steps to provide written disclosure to any customer prior to initiating a digital asset kiosk transaction1 in ,english and in the same language principally used by the digital asset kiosk operator to advertise or solicit customers1 including by displaying the disclosure in a prominent1 conspicuous1 easily readable manner1 that contains the terms1 conditions1 and itemized elements of the transaction and contains the following3 7,a7 ,a warning written prominently in bold type stating the following3 ,warning3 ,losses due to fraudulent or accidental transactions may not be recoverable and digital asset kiosk transactions are irreversible44 7,b7 ,the following statement3 ,digital assets are not legal tender4 ,digital assets are not backed by the full faith and credit of the ,united ,states ,government or guaranteed by the ,united ,states ,government4 ,digital asset wallet accounts and digital asset balances are not subject to ,,fdic insurance or ,,ncua insurance44 7,c7 ,the amount of digital assets involved in the transaction and the type of digital assets involved in the transaction1 including the ticker or symbol that is used to represent a digital asset4 7,d7 ,the ,u4,s4 dollar price of the digital assets involved in the digital asset kiosk transaction that is charged to the customer and the current ,u4,s4 dollar market price of such digital assets1 as is quoted on at least one digital asset trading platform that is registered with the ,department of the ,treasury and is identified by name1 at the time the disclosure is provided4 7,e7 ,the amount of charges collected from the customer by the digital asset kiosk operator1 which shall be-- 7i7 displayed prominently in bold type on a dedicated disclosure screen2 and 7ii7 presented as an itemized list that separately identifies-- 7,i7 any fees or expenses paid by the customer1 expressed in ,united ,states dollars and as the percentage of the transaction2 and 7,,ii7 the difference1 expressed in ,united ,states dollars1 between the current market price of the digital assets involved in the transaction and the price of such digital assets charged to the customer4 7#b7 ,guidance ,not later than #ahj days after the date of enactment of this section1 the ,secretary of the ,treasury1 in consultation with the ,federal ,trade ,commission and the ,director of the ,bureau of ,consumer ,financial ,protection1 shall issue guidance to assist digital asset kiosk operators with providing disclosures described in paragraph 7#a7 that are effective1 clear and conspicuous1 easily understandable1 and displayed in a standardized format4 7e7 ,anti-,fraud measures 7#a7 ,in general ,a digital asset kiosk operator shall take reasonable steps to detect and prevent financial fraud1 including by taking the following steps3 7,a7 ,providing clear scam warnings to customers before entering into a digital asset transaction that1 at a minimum1 address the following common fraudulent tactics3 7i7 ,payment requests to an individual the customer has never met4 7ii7 ,initial contact via social media1 online dating1 or other messaging applications4 7iii7 ,impersonation of representatives from government agencies1 financial institutions1 credit unions1 or other legitimate organizations or businesses4 7iv7 ,urgent or emergency requests4 7v7 ,utilizing a scannable code associated with a digital asset wallet that is not owned by the customer4 7,b7 ,updating1 on an annual basis1 the warnings described in subparagraph 7,a71 which shall be informed by the annual fraud alerts or notices described in subsection 7k74 7#b7 ,anti-fraud policy ,not later than #ahj days after the date of enactment of this section1 the ,secretary of the ,treasury shall issue rules to require a digital asset kiosk operator to develop1 implement1 and routinely update an anti-fraud policy that-- 7,a7 is in writing and available for inspection by the ,secretary of the ,treasury or the ,secretary's designee2 7,b7 is signed by1 certified by1 and accountable to senior management of the digital asset kiosk operator2 and 7,c7 includes policies1 procedures1 controls1 and monitoring mechanisms to address the fraudulent practices described in paragraph 7#a77;,a74 7f7 ,acknowledgment of disclosures 7#a7 ,in general ,each time a customer uses a digital asset kiosk1 the digital asset kiosk operator shall ensure acknowledgment of all disclosures required under subsection 7d7 and fraud warnings under subsection 7e7 via confirmation of consent of the customer at the digital asset kiosk4 7#b7 ,requirements for new customers ,prior to initiating a digital asset kiosk transaction on behalf of a new customer1 a digital asset kiosk operator shall obtain confirmation from the new customer that-- 7,a7 the new customer has reviewed the disclosure of charges described in subsection 7d77#a77;,e72 and 7,b7 the new customer understands the total charges as a percentage of the transaction amount4 7#c7 ,rule of constructions on customer remedies ,an acknowledgment described under this subsection shall not be construed to waive1 nullify1 or limit any right to a refund or other remedy available to a customer under applicable ,state or local law4 7g7 ,receipts ,upon completion of each digital asset kiosk transaction1 the digital asset kiosk operator shall provide the customer with a physical or electronic receipt1 which shall include the following information3 7#a7 ,the name and contact information of the digital asset kiosk operator1 including a telephone number for a customer service help line4 7#b7 ,the name of the customer4 7#c7 ,the type1 value1 date1 and precise time of the digital asset kiosk transaction1 and each applicable digital asset wallet address4 7#d7 ,the amount of ,united ,states dollars or other fiat currency involved in the transaction4 7#e7 ,the amount1 in ,united ,states dollars1 of any charges collected by the digital asset kiosk operator in relation to the transaction1 presented as line-items summed within the total transaction4 7#f7 ,a statement that the customer should contact law enforcement if they suspect fraud or scams1 including the contact information for the relevant local law enforcement agency and for applicable ,state and ,federal law enforcement agencies4 7#g7 ,any additional information the digital asset kiosk operator determines appropriate4 7h7 ,customer service help line ,a digital asset kiosk operator shall provide live customer service during extended business hours and display the phone number for such service in a clear1 conspicuous1 and easily readable manner upon each digital asset kiosk4 7i7 ,refunds for charges ,a digital asset kiosk operator shall issue a refund for charges collected from a customer in connection with a digital asset kiosk transaction within #cj days if-- 7#a7 the customer was fraudulently induced into engaging in the digital asset kiosk transaction2 and 7#b7 the customer files a complaint to the digital asset kiosk operator1 which includes-- 7,a7 the name1 address1 and phone number of the customer2 7,b7 information that establishes the type1 value1 date1 and time of the digital asset kiosk transaction2 and 7,c7 a copy of a report to a ,state or local law enforcement agency or a ,federal or ,state authority made not later than #ij days after the digital asset kiosk transaction4 7j7 ,communications with ,financial ,crimes ,enforcement ,network and law enforcement ,the ,secretary of the ,treasury shall issue rules to require a digital asset kiosk operator to provide the ,financial ,crimes ,enforcement ,network and other relevant law enforcement and government agencies with a dedicated and frequently monitored phone number and email address to facilitate communication with the operator in the event of reported or suspected fraudulent activity4 7k7 ,fraud scheme alerts ,not later than #i months after the date of enactment of this section1 and for each calendar year thereafter1 the ,secretary of the ,treasury1 in consultation with the ,federal ,bureau of ,investigation and the ,federal ,trade ,commission1 shall issue an alert or notice to assist digital asset kiosk operators in-- 7#a7 identifying emerging fraud schemes involving digital asset kiosks2 and 7#b7 filing suspicious activity reports4 7l7 ,state regulatory authority 7#a7 ,effect on ,state licensing laws ,nothing in this section may be construed to limit the authority of a ,state regulatory agency to require a digital asset kiosk operator to ensure registration1 licensing1 and compliance related to applicable ,state laws4 7#b7 ,state-issued decals for compliant digital asset kiosks ,a ,state regulatory agency may-- 7,a7 issue a decal or physical sign that can be affixed to a digital asset kiosk1 in a form or manner determined by the ,state regulatory agency1 to signal compliance with applicable ,state and ,federal laws1 including whether-- 7i7 the physical location of such digital asset kiosk has been filed with the ,secretary of the ,treasury2 and 7ii7 the operator of such digital asset kiosk is registered with the ,secretary of the ,treasury and has obtained the appropriate licensing from the ,state regulatory agency2 7,b7 administer a process through which a digital asset kiosk operator is issued such decal or sign for affixation to the digital asset kiosk2 and 7,c7 impose penalties for any false advertising1 misuse of signage1 or misrepresentations of regulated or compliant status4 7#c7 ,coordination with ,state regulators ,the ,secretary of the ,treasury1 acting through the ,financial ,crimes ,enforcement ,network1 may enter into agreements with ,state regulatory agencies to facilitate the supervision of digital asset kiosk operators and enhance compliance with ,federal standards1 including agreements relating to the coordination of examinations and the sharing of supervisory information for the purposes of enforcing applicable ,federal standards4 7#d7 ,effect on ,state law ,this section-- 7,a7 shall supersede any applicable ,state or local law with respect to restrictions or requirements established after the effective date of this section on the total monetary value that any customer may exchange in one or multiple digital asset kiosk transactions within a defined time period2 7,b7 may not be construed to limit the authority of a ,state regulatory agency or local authority to impose other requirements in order to protect consumers or prevent fraudulent or money laundering activity2 7,c7 may not be construed to permit a digital asset kiosk operator to operate or otherwise conduct business in a ,state without obtaining the appropriate licensing from the applicable ,state regulatory agency and complying with other applicable ,state laws2 and 7,d7 subject to subparagraph 7,a71 may not be construed as altering1 limiting1 or affecting the authority of a ,state attorney general or any ,state regulatory agency to bring an enforcement action or other regulatory proceeding arising solely under the law in effect in that ,state4 4 7b7 ,effective date ,section #eccg of title #ca1 ,united ,states ,code1 shall take effect at the end of the #ahj-;day period beginning on the date of enactment of this ,act4 7c7 ,clerical amendment ,the table of sections for chapter #ec of title #ca1 ,united ,states ,code1 is amended by inserting after the item relating to section #eccf the following3 #eccg4 ,anti-money laundering and anti-fraud requirements for digital asset kiosk operators4 4