,i #aai? ,,congress #b;d ,session ,h4 ,r4 #ibfh ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,june #aa1 #bjbf,mr4 ,ca/5 7= himself & ,ms4 ,salaz>7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices ,a ,,bill ,to am5d ! ,bank ,secrecy ,act to require ! regi/ration ( digital asset kiosk op]ators & to require su* op]ators to comply ) anti-money laund]+ & anti-fraud requirem5ts1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,/op ,crypto ,,atm ,scams ,act4 #b4 ,regi/ration ( digital asset kiosk op]ators 7a7 ,9 g5]al ,section #eccj ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7d7-- 7,a7 9 p>agraph 7#a77;,a71 by ins]t+ 1 any digital asset kiosk op]ator1 aft] simil> in/rum5ts2 & 7,b7 by add+ at ! end ! foll[+3 7#c7 ,digital asset kiosk t]ms ,! t]ms digital asset kiosk & digital asset kiosk op]ator h ! mean+ giv5 ^? t]ms1 respectively1 "u section #eccg7;a74 2 & 7#b7 by add+ at ! end ! foll[+3 7f7 ,regi/ration ( digital asset kiosk locations 7#a7 ,9 g5]al ,! ,secret>y ( ! ,treasury %all require a digital asset kiosk op]ator-- 7,a7 be=e beg9n+ to op]ate a digital asset kiosk1 to submit a li/ conta9+ ! physical address ( ea* digital asset kiosk own$ or op]at$ by ! digital asset kiosk op]ator2 & 7,b7 n less ?an once e #ij days !reaft]1 to submit an update to su* li/4 7#b7 ,=m & mann] ( regi/ration ,ea* submission by a digital asset kiosk op]ator pursuant to p>agraph 7#a7 %all include-- 7,a7 ! legal "n ( ! digital asset kiosk op]ator2 7,b7 ! physical address ( ea* digital asset kiosk own$ or op]at$ by ! digital asset kiosk op]ator t is locat$ 9 ! ,unit$ ,/ates or ! t]ritories ( ! ,unit$ ,/ates2 7,c7 up-to-date contact in=mation = ! digital asset kiosk op]ator's compliance (fic] describ$ 9 section #ecah7;h77#a77;,b72 7,d7 ! />t date ( op]ation ( ea* digital asset kiosk2 & 7,e7 ! end date ( op]ation ( ea* digital asset kiosk1 if applicable4 7#c7 ,false & incomplete in=mation ,! fil+ ( false or mat]ially incomplete in=mation 9 a submission requir$ "u p>agraph 7#a7 %all be deem$ a failure to comply ) ! requirem5ts ( ?is subsection4 7#d7 ,public availability ,! ,secret>y ( ! ,treasury %all make all in=mation submitt$ "u ?is subsection available to ! public1 includ+ on a website ( ! ,dep>tm5t ( ! ,treasury4 4 7b7 ,rule ( application = exi/+ digital asset kiosk op]ators ,a p]son :o is a digital asset kiosk op]ator 7z def9$ 9 section #eccg7;a7 ( title #ca1 ,unit$ ,/ates ,code7 on ! date ( enactm5t ( ?is ,act-- 7#a7 %all1 n lat] ?an ! end ( ! #f-mon? p]iod beg9n+ on ! date ( enactm5t ( ?is ,act1 submit ! initial li/ describ$ 9 su* section #eccj7;f77#a77;,a72 & 7#b7 %all1 n lat] ?an #ij days aft] ! end ( ! #f-mon? p]iod beg9n+ on ! date ( enactm5t ( ?is ,act1 submit ! fir/ update ( su* li/4 #c4 ,anti-money laund]+ & anti-fraud requirem5ts = digital asset kiosk op]ators 7a7 ,9 g5]al ,sub*apt] ,,ii ( *apt] #ec ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 #eccg4 ,anti-money laund]+ & anti-fraud requirem5ts = digital asset kiosk op]ators 7a7 ,def9itions ,9 ?is section3 7#a7 ,*>ge ,! t]m *>ge means-- 7,a7 fees or exp5ses paid by a cu/om]2 & 7,b7 ! diff]5ce betwe5 ! m>ket price ( a digital asset & ! price ( ! digital asset *>g$ to ! cu/om]4 7#b7 ,digital asset ,! t]m digital asset means any digital repres5tation ( value t is issu$ or transf]r$ us+ a cryptographically secur$ di/ribut$ l$g]1 block*a9 te*nology1 or any o!r simil> te*nology4 7#c7 ,digital asset kiosk ,! t]m digital asset kiosk means-- 7,a7 an automat$ tell] ma*9e t facilitates ! buy+1 sell+1 or ex*ange ( digital assets = fiat curr5cy or o!r digital assets2 or 7,b7 a digital or mobile application t facilitates ! buy+1 sell+1 or ex*ange ( fiat curr5cy = digital assets at a p>ticipat+ physical location 9 an organiz$ m]*ant network4 7#d7 ,digital asset kiosk op]ator ,! t]m digital asset kiosk op]ator means a p]son t owns or op]ates a digital asset kiosk4 7#e7 ,digital asset wallet ,! t]m digital asset wallet means a s(tw>e application or o!r me*anism t provides a means = hold+1 /or+1 & transf]r+ digital assets4 7#f7 ,digital asset wallet address ,! t]m digital asset wallet address means an alphanum]ic id5tifi] t is associat$ ) a digital asset wallet & repres5ts a pot5tial de/9ation = a digital asset transf]4 7#g7 ,ext5d$ bus9ess h\rs ,! t]m ext5d$ bus9ess h\rs means-- 7,a7 ! h\rs betwe5 #h3jj a4m4 & #h3jj p4m4 local "t on bus9ess days2 & 7,b7 ! h\rs betwe5 #i3jj a4m4 & #e3jj p4m4 local "t on week5ds & holidays4 7#h7 ,m>ket price ,! t]m m>ket price means1 ) respect to a digital asset1 ! curr5t m>ket price ( a p>ticul> digital asset publicly quot$ on a digital asset trad+ plat=m t is regi/]$ ) ! ,dep>tm5t ( ! ,treasury = a p>ticul> "t4 7#i7 ,new cu/om] ,) respect to a digital asset kiosk op]ator1 a p]son is a new cu/om] ( ! digital asset kiosk op]ator if-- 7,a7 ! p]son has nev] previ\sly transact$ ) ! digital asset kiosk op]ator2 or 7,b7 less ?an #ad days h elaps$ s9ce ! p]son ent]$ into _! fir/ transaction ) ! digital asset kiosk op]ator4 7b7 ,anti-,money laund]+ program 7#a7 ,9 g5]al ,a digital asset kiosk op]ator %all-- 7,a7 develop1 implem5t1 & r\t9ely update an anti-money laund]+ program describ$ 9 section #ecah7;h71 & file a copy ( su* program ) ! ,f9ancial ,crimes ,en=cem5t ,network2 7,b7 be subject to ! requirem5t to report suspici\s transactions describ$ 9 section #ecah7;g72 & 7,c7 be subject to ! requirem5ts describ$ "u ?is sub*apt] to file curr5cy transaction reports4 7#b7 ,risk-bas$ requirem5ts ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is section1 ! ,secret>y ( ! ,treasury %all issue rules to require a digital asset kiosk op]ator1 9 implem5t+ an anti-money laund]+ program requir$ "u p>agraph 7#a77;,a71 to adopt controls t are reasonably design$ to-- 7,a7 v]ify a cu/om]'s id5tity1 includ+ dur+ any onl9e pre-regi/ration process & at ! physical digital asset kiosk location2 7,b7 monitor = digital asset kiosk transactions involv+ a digital asset wallet directly or indirectly associat$ ) any digital asset wallet address li/$ on any relevant sanctions li/s ?r\gh ! use ( block*a9 analytics tools2 7,c7 assess ! risks associat$ ) & ! likelihood ( future illicit activity 9 connection ) digital asset kiosk transactions ?r\gh ! use ( block*a9 analytics tools2 & 7,d7 ma9ta9 re/rictions t prev5t m ?an "o cu/om] ( su* digital asset kiosk op]ator f us+ ! same digital wallet address4 7c7 ,limits = digital asset kiosk transactions 7#a7 ,daily limits = new cu/om]s ,a digital asset kiosk op]ator may n accept "o or m digital asset kiosk transactions on behalf ( a new cu/om] t h a total monet>y value ( m ?an #b1jjj dur+ a #bd-;h\r p]iod4 7#b7 ,total limits = new cu/om]s ,a digital asset kiosk op]ator may n accept digital asset kiosk transactions on behalf ( a new cu/om] t h a total monet>y value1 9 ! aggregate1 ( m ?an #aj1jjj4 7#c7 ,daily limits = exi/+ cu/om]s ,) respect to a cu/om] t is n a new cu/om]1 a digital asset kiosk op]ator may n accept "o or m digital asset kiosk transactions on behalf ( ! cu/om] t h a total monet>y value ( m ?an #g1ejj dur+ a #bd-;h\r p]iod4 7#d7 ,inflation adju/m5t ,! ,secret>y ( ! ,treasury %all update ! doll> am\nts 9 ?is subsection e #e ye>s to reflect ! *ange 9 ! ,consum] ,price ,index = ,all ,urban ,consum]s publi%$ by ! ,bureau ( ,labor ,/ati/ics ( ! ,dep>tm5t ( ,labor4 7#e7 ,rulemak+ au?ority ,! ,secret>y ( ! ,treasury may issue rules to adju/ ! transaction limit am\nts describ$ "u ?is subsection1 z ! ,secret>y det]m9es are reasonably necess>y to det] fraudul5t activity & illicit f9ance4 7d7 ,disclosures = cu/om]s 7#a7 ,9 g5]al ,a digital asset kiosk op]ator %all take reasonable /eps to provide writt5 disclosure to any cu/om] prior to initiat+ a digital asset kiosk transaction1 9 ,engli% & 9 ! same language pr9cipally us$ by ! digital asset kiosk op]ator to adv]tise or solicit cu/om]s1 includ+ by display+ ! disclosure 9 a prom95t1 conspicu\s1 easily readable mann]1 t conta9s ! t]ms1 conditions1 & itemiz$ elem5ts ( ! transaction & conta9s ! foll[+3 7,a7 ,a w>n+ writt5 prom95tly 9 bold type /at+ ! foll[+3 ,w>n+3 ,losses due to fraudul5t or accid5tal transactions may n be recov]able & digital asset kiosk transactions are irrev]sible44 7,b7 ,! foll[+ /atem5t3 ,digital assets are n legal t5d]4 ,digital assets are n back$ by ! full fai? & cr$it ( ! ,unit$ ,/ates ,gov]nm5t or gu>ante$ by ! ,unit$ ,/ates ,gov]nm5t4 ,digital asset wallet acc\nts & digital asset balances are n subject to ,,fdic insurance or ,,ncua insurance44 7,c7 ,! am\nt ( digital assets involv$ 9 ! transaction & ! type ( digital assets involv$ 9 ! transaction1 includ+ ! tick] or symbol t is us$ to repres5t a digital asset4 7,d7 ,! ,u4,s4 doll> price ( ! digital assets involv$ 9 ! digital asset kiosk transaction t is *>g$ to ! cu/om] & ! curr5t ,u4,s4 doll> m>ket price ( su* digital assets1 z is quot$ on at lea/ "o digital asset trad+ plat=m t is regi/]$ ) ! ,dep>tm5t ( ! ,treasury & is id5tifi$ by "n1 at ! "t ! disclosure is provid$4 7,e7 ,! am\nt ( *>ges collect$ f ! cu/om] by ! digital asset kiosk op]ator1 :i* %all be-- 7i7 display$ prom95tly 9 bold type on a d$icat$ disclosure scre52 & 7ii7 pres5t$ z an itemiz$ li/ t sep>ately id5tifies-- 7,i7 any fees or exp5ses paid by ! cu/om]1 express$ 9 ,unit$ ,/ates doll>s & z ! p]c5tage ( ! transaction2 & 7,,ii7 ! diff]5ce1 express$ 9 ,unit$ ,/ates doll>s1 betwe5 ! curr5t m>ket price ( ! digital assets involv$ 9 ! transaction & ! price ( su* digital assets *>g$ to ! cu/om]4 7#b7 ,guidance ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is section1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,f$]al ,trade ,commission & ! ,director ( ! ,bureau ( ,consum] ,f9ancial ,protection1 %all issue guidance to assi/ digital asset kiosk op]ators ) provid+ disclosures describ$ 9 p>agraph 7#a7 t are effective1 cle> & conspicu\s1 easily und]/&able1 & display$ 9 a /&>diz$ =mat4 7e7 ,anti-,fraud measures 7#a7 ,9 g5]al ,a digital asset kiosk op]ator %all take reasonable /eps to detect & prev5t f9ancial fraud1 includ+ by tak+ ! foll[+ /eps3 7,a7 ,provid+ cle> scam w>n+s to cu/om]s be=e ent]+ into a digital asset transaction t1 at a m9imum1 address ! foll[+ common fraudul5t tactics3 7i7 ,paym5t reque/s to an individual ! cu/om] has nev] met4 7ii7 ,initial contact via social m$ia1 onl9e dat+1 or o!r messag+ applications4 7iii7 ,imp]sonation ( repres5tatives f gov]nm5t ag5cies1 f9ancial in/itutions1 cr$it unions1 or o!r legitimate organizations or bus9esses4 7iv7 ,urg5t or em]g5cy reque/s4 7v7 ,utiliz+ a scannable code associat$ ) a digital asset wallet t is n own$ by ! cu/om]4 7,b7 ,updat+1 on an annual basis1 ! w>n+s describ$ 9 subp>agraph 7,a71 :i* %all be in=m$ by ! annual fraud al]ts or notices describ$ 9 subsection 7k74 7#b7 ,anti-fraud policy ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is section1 ! ,secret>y ( ! ,treasury %all issue rules to require a digital asset kiosk op]ator to develop1 implem5t1 & r\t9ely update an anti-fraud policy t-- 7,a7 is 9 writ+ & available = inspection by ! ,secret>y ( ! ,treasury or ! ,secret>y's designee2 7,b7 is sign$ by1 c]tifi$ by1 & acc\ntable to s5ior managem5t ( ! digital asset kiosk op]ator2 & 7,c7 includes policies1 proc$ures1 controls1 & monitor+ me*anisms to address ! fraudul5t practices describ$ 9 p>agraph 7#a77;,a74 7f7 ,ackn[l$gm5t ( disclosures 7#a7 ,9 g5]al ,ea* "t a cu/om] uses a digital asset kiosk1 ! digital asset kiosk op]ator %all ensure ackn[l$gm5t ( all disclosures requir$ "u subsection 7d7 & fraud w>n+s "u subsection 7e7 via confirmation ( cons5t ( ! cu/om] at ! digital asset kiosk4 7#b7 ,requirem5ts = new cu/om]s ,prior to initiat+ a digital asset kiosk transaction on behalf ( a new cu/om]1 a digital asset kiosk op]ator %all obta9 confirmation f ! new cu/om] t-- 7,a7 ! new cu/om] has review$ ! disclosure ( *>ges describ$ 9 subsection 7d77#a77;,e72 & 7,b7 ! new cu/om] und]/&s ! total *>ges z a p]c5tage ( ! transaction am\nt4 7#c7 ,rule ( con/ructions on cu/om] rem$ies ,an ackn[l$gm5t describ$ "u ?is subsection %all n be con/ru$ to waive1 nullify1 or limit any "r to a refund or o!r rem$y available to a cu/om] "u applicable ,/ate or local law4 7g7 ,receipts ,^u completion ( ea* digital asset kiosk transaction1 ! digital asset kiosk op]ator %all provide ! cu/om] ) a physical or electronic receipt1 :i* %all include ! foll[+ in=mation3 7#a7 ,! "n & contact in=mation ( ! digital asset kiosk op]ator1 includ+ a telephone numb] = a cu/om] s]vice help l9e4 7#b7 ,! "n ( ! cu/om]4 7#c7 ,! type1 value1 date1 & precise "t ( ! digital asset kiosk transaction1 & ea* applicable digital asset wallet address4 7#d7 ,! am\nt ( ,unit$ ,/ates doll>s or o!r fiat curr5cy involv$ 9 ! transaction4 7#e7 ,! am\nt1 9 ,unit$ ,/ates doll>s1 ( any *>ges collect$ by ! digital asset kiosk op]ator 9 relation to ! transaction1 pres5t$ z l9e-items summ$ )9 ! total transaction4 7#f7 ,a /atem5t t ! cu/om] %\ld contact law en=cem5t if !y suspect fraud or scams1 includ+ ! contact in=mation = ! relevant local law en=cem5t ag5cy & = applicable ,/ate & ,f$]al law en=cem5t ag5cies4 7#g7 ,any additional in=mation ! digital asset kiosk op]ator det]m9es appropriate4 7h7 ,cu/om] s]vice help l9e ,a digital asset kiosk op]ator %all provide live cu/om] s]vice dur+ ext5d$ bus9ess h\rs & display ! phone numb] = su* s]vice 9 a cle>1 conspicu\s1 & easily readable mann] ^u ea* digital asset kiosk4 7i7 ,refunds = *>ges ,a digital asset kiosk op]ator %all issue a refund = *>ges collect$ f a cu/om] 9 connection ) a digital asset kiosk transaction )9 #cj days if-- 7#a7 ! cu/om] 0 fraudul5tly induc$ into engag+ 9 ! digital asset kiosk transaction2 & 7#b7 ! cu/om] files a compla9t to ! digital asset kiosk op]ator1 :i* includes-- 7,a7 ! "n1 address1 & phone numb] ( ! cu/om]2 7,b7 in=mation t e/abli%es ! type1 value1 date1 & "t ( ! digital asset kiosk transaction2 & 7,c7 a copy ( a report to a ,/ate or local law en=cem5t ag5cy or a ,f$]al or ,/ate au?ority made n lat] ?an #ij days aft] ! digital asset kiosk transaction4 7j7 ,communications ) ,f9ancial ,crimes ,en=cem5t ,network & law en=cem5t ,! ,secret>y ( ! ,treasury %all issue rules to require a digital asset kiosk op]ator to provide ! ,f9ancial ,crimes ,en=cem5t ,network & o!r relevant law en=cem5t & gov]nm5t ag5cies ) a d$icat$ & frequ5tly monitor$ phone numb] & email address to facilitate communication ) ! op]ator 9 ! ev5t ( report$ or suspect$ fraudul5t activity4 7k7 ,fraud s*eme al]ts ,n lat] ?an #i mon?s aft] ! date ( enactm5t ( ?is section1 & = ea* cal5d> ye> !reaft]1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,f$]al ,bureau ( ,inve/igation & ! ,f$]al ,trade ,commission1 %all issue an al]t or notice to assi/ digital asset kiosk op]ators 9-- 7#a7 id5tify+ em]g+ fraud s*emes involv+ digital asset kiosks2 & 7#b7 fil+ suspici\s activity reports4 7l7 ,/ate regulatory au?ority 7#a7 ,effect on ,/ate lic5s+ laws ,no?+ 9 ?is section may be con/ru$ to limit ! au?ority ( a ,/ate regulatory ag5cy to require a digital asset kiosk op]ator to ensure regi/ration1 lic5s+1 & compliance relat$ to applicable ,/ate laws4 7#b7 ,/ate-issu$ decals = compliant digital asset kiosks ,a ,/ate regulatory ag5cy may-- 7,a7 issue a decal or physical sign t c be affix$ to a digital asset kiosk1 9 a =m or mann] det]m9$ by ! ,/ate regulatory ag5cy1 to signal compliance ) applicable ,/ate & ,f$]al laws1 includ+ :e!r-- 7i7 ! physical location ( su* digital asset kiosk has be5 fil$ ) ! ,secret>y ( ! ,treasury2 & 7ii7 ! op]ator ( su* digital asset kiosk is regi/]$ ) ! ,secret>y ( ! ,treasury & has obta9$ ! appropriate lic5s+ f ! ,/ate regulatory ag5cy2 7,b7 adm9i/] a process ?r\gh :i* a digital asset kiosk op]ator is issu$ su* decal or sign = affixation to ! digital asset kiosk2 & 7,c7 impose p5alties = any false adv]tis+1 misuse ( signage1 or misrepres5tations ( regulat$ or compliant /atus4 7#c7 ,coord9ation ) ,/ate regulators ,! ,secret>y ( ! ,treasury1 act+ ?r\gh ! ,f9ancial ,crimes ,en=cem5t ,network1 may ent] into agreem5ts ) ,/ate regulatory ag5cies to facilitate ! sup]vision ( digital asset kiosk op]ators & enhance compliance ) ,f$]al /&>ds1 includ+ agreem5ts relat+ to ! coord9ation ( exam9ations & ! %>+ ( sup]visory in=mation = ! purposes ( en=c+ applicable ,f$]al /&>ds4 7#d7 ,effect on ,/ate law ,?is section-- 7,a7 %all sup]s$e any applicable ,/ate or local law ) respect to re/rictions or requirem5ts e/abli%$ aft] ! effective date ( ?is section on ! total monet>y value t any cu/om] may ex*ange 9 "o or multiple digital asset kiosk transactions )9 a def9$ "t p]iod2 7,b7 may n be con/ru$ to limit ! au?ority ( a ,/ate regulatory ag5cy or local au?ority to impose o!r requirem5ts 9 ord] to protect consum]s or prev5t fraudul5t or money laund]+ activity2 7,c7 may n be con/ru$ to p]mit a digital asset kiosk op]ator to op]ate or o!rwise conduct bus9ess 9 a ,/ate )\t obta9+ ! appropriate lic5s+ f ! applicable ,/ate regulatory ag5cy & comply+ ) o!r applicable ,/ate laws2 & 7,d7 subject to subp>agraph 7,a71 may n be con/ru$ z alt]+1 limit+1 or affect+ ! au?ority ( a ,/ate attorney g5]al or any ,/ate regulatory ag5cy to br+ an en=cem5t action or o!r regulatory proce$+ aris+ solely "u ! law 9 effect 9 t ,/ate4 4 7b7 ,effective date ,section #eccg ( title #ca1 ,unit$ ,/ates ,code1 %all take effect at ! end ( ! #ahj-;day p]iod beg9n+ on ! date ( enactm5t ( ?is ,act4 7c7 ,cl]ical am5dm5t ,! table ( sections = *apt] #ec ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ aft] ! item relat+ to section #eccf ! foll[+3 #eccg4 ,anti-money laund]+ & anti-fraud requirem5ts = digital asset kiosk op]ators4 4