,,ii #aai? ,,congress #a/ ,session ,s4 #gaj ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,febru>y #be1 #bjbe,mr4 ,durb9 7= himself1 ,mr4 ,blum5?al1 ,mr4 ,re$1 & ,mr4 ,wel*7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to am5d title #ca1 ,unit$ ,/ates ,code1 to prev5t fraudul5t transactions at virtual curr5cy kiosks1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,crypto ,,atm ,fraud ,prev5tion ,act ( #bjbe4 #b4 ,regi/ration ) ! ,secret>y ( ! ,treasury ,section #eccj ( title #ca1 ,unit$ ,/ates ,code1 is am5d$-- 7#a7 9 subsection 7d7-- 7,a7 9 p>agraph 7#a77;,a71 by ins]t+ 1 any p]son :o owns1 op]ates1 or manages a virtual curr5cy kiosk 9 ! ,unit$ ,/ates or its t]ritories1 aft] simil> in/rum5ts2 & 7,b7 by add+ at ! end ! foll[+3 7#c7 ,virtual curr5cy2 virtual curr5cy address2 virtual curr5cy kiosk2 virtual curr5cy kiosk op]ator ,! t]ms virtual curr5cy1 virtual curr5cy address1 virtual curr5cy kiosk1 & virtual curr5cy kiosk op]ator h ! mean+s giv5 ^? t]ms1 respectively1 9 section #eccg4 2 & 7#b7 by add+ at ! end ! foll[+3 7f7 ,regi/ration ( virtual curr5cy kiosk locations 7#a7 ,9 g5]al ,n lat] ?an #ij days aft] ! effective date ( ?is subsection1 & n less ?an once e #ij days !reaft]1 ! ,secret>y ( ! ,treasury %all require virtual curr5cy kiosk op]ators to submit an updat$ li/ conta9+ ! physical address ( ea* virtual curr5cy kiosk own$ or op]at$ by ! virtual curr5cy kiosk op]ator4 7#b7 ,=m & mann] ( regi/ration ,ea* submission by a virtual curr5cy kiosk op]ator pursuant to p>agraph 7#a7 %all include-- 7,a7 ! legal "n ( ! virtual curr5cy kiosk op]ator2 7,b7 any fictiti\s or trade "n ( ! virtual curr5cy kiosk op]ator2 7,c7 ! physical address ( ea* virtual curr5cy kiosk own$1 op]at$1 or manag$ by ! virtual curr5cy kiosk op]ator t is locat$ 9 ! ,unit$ ,/ates or ! t]ritories ( ! ,unit$ ,/ates2 7,d7 ! />t date ( op]ation ( ea* virtual curr5cy kiosk2 7,e7 ! end date ( op]ation ( ea* virtual curr5cy kiosk1 if applicable2 & 7,f7 ea* virtual curr5cy address us$ by ! virtual curr5cy kiosk op]ator4 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 4 #c4 ,prev5t+ fraudul5t transactions at virtual curr5cy kiosks 7a7 ,9 g5]al ,sub*apt] ,,ii ( ,*apt] #ec ( ,title #ca1 ,unit$ ,/ates ,code1 is am5d$ by add+ at ! end ! foll[+3 #eccg4 ,virtual curr5cy kiosk fraud prev5tion 7a7 ,def9itions ,9 ?is section3 7#a7 ,block*a9 analytics ,! t]m block*a9 analytics means ! analysis ( data f block*a9s or public di/ribut$ l$g]s1 & associat$ transaction in=mation1 to provide risk-specific in=mation ab\t virtual curr5cy transactions & virtual curr5cy addresses4 7#b7 ,cu/om] ,! t]m cu/om] means any p]son t pur*ases or sells virtual curr5cy ?r\gh a virtual curr5cy kiosk4 7#c7 ,exi/+ cu/om] ,! t]m exi/+ cu/om] means a cu/om] o!r ?an a new cu/om]4 7#d7 ,fin,c,e,n ,! t]m ,fin,c,e,n means ! ,f9ancial ,crimes ,en=cem5t ,network ( ! ,dep>tm5t ( ! ,treasury4 7#e7 ,new cu/om] ,! t]m new cu/om]1 ) respect to a virtual curr5cy kiosk op]ator1 means a cu/om] dur+ ! #ad-;day p]iod beg9n+ on ! date ( ! fir/ virtual curr5cy kiosk transaction ( ! cu/om] ) ! virtual curr5cy kiosk op]ator4 7#f7 ,transaction ha% ,! t]m transaction ha% means a unique id5tifi] made up ( a /r+ ( *>act]s t act z a record ( & provide pro( t a transaction 0 v]ifi$ & add$ to ! block*a94 7#g7 ,virtual curr5cy ,! t]m virtual curr5cy means any digital repres5tation ( value t is record$ on a cryptographically secur$ di/ribut$ l$g] or any simil> te*nology or ano!r implem5tation1 :i* 0 design$ & built z "p ( a sy/em to lev]age or replace block*a91 di/ribut$ l$g] te*nology1 or _! d]ivatives4 7#h7 ,virtual curr5cy address ,! t]m virtual curr5cy address means an alphanum]ic id5tifi] associat$ ) a virtual curr5cy wallet id5tify+ ! location to :i* virtual curr5cy pur*as$ ?r\gh a virtual curr5cy kiosk c be s5t or f :i* virtual curr5cy sold ?r\gh a virtual curr5cy kiosk c be access$4 7#i7 ,virtual curr5cy kiosk ,! t]m virtual curr5cy kiosk means a /&-alone ma*9e t is capable ( accept+ or disp5s+ legal t5d] 9 ex*ange = virtual curr5cy4 7#aj7 ,virtual curr5cy kiosk op]ator ,! t]m virtual curr5cy kiosk op]ator means a p]son :o owns1 op]ates1 or manages a virtual curr5cy kiosk locat$ 9 ! ,unit$ ,/ates or its t]ritories4 7#aa7 ,virtual curr5cy kiosk transaction ,! t]m virtual curr5cy kiosk transaction means ! pur*ase or sale ( virtual curr5cy via a virtual curr5cy kiosk4 7#ab7 ,virtual curr5cy wallet ,! t]m virtual curr5cy wallet means a s(tw>e application or o!r me*anism provid+ a means = hold+1 /or+1 & transf]r+ virtual curr5cy4 7b7 ,disclosures ,be=e ent]+ into a virtual curr5cy transaction ) a cu/om]1 a virtual curr5cy kiosk op]ator %all disclose 9 a cle>1 conspicu\s1 & easily readable mann]-- 7#a7 all relevant t]ms & conditions ( ! virtual curr5cy kiosk transaction1 includ+-- 7,a7 ! am\nt ( ! virtual curr5cy kiosk transaction2 7,b7 ! type & nature ( ! virtual curr5cy kiosk transaction2 7,c7 a w>n+ t ! virtual curr5cy kiosk transaction is f9al1 is n refundable1 & may n be rev]s$2 & 7,d7 ! type & am\nt ( any fees or o!r exp5ses paid by ! cu/om]2 7#b7 a w>n+ relat+ to consum] fraud includ+-- 7,a7 a w>n+ t consum] fraud (t5 />ts ) contact f a /rang]1 & t ! cu/om] %\ld nev] s5d money to someone !y d n "k2 7,b7 a w>n+ ab\t ! mo/ common types ( fraudul5t s*emes involv+ virtual curr5cy kiosks1 su* z-- 7i7 imp]sonation ( a gov]nm5t (ficial or a bank repres5tative2 7ii7 ?reats ( jail "t or f9ancial p5alties2 7iii7 (f]s ( a job or rew>d 9 ex*ange = paym5t1 or (f]s ( deals t seem too good to be true2 7iv7 claims ( a froz5 bank acc\nt or cr$it c>d2 or 7v7 reque/s = donations to *>ity or disa/] relief2 & 7,c7 a /atem5t t ! cu/om] %\ld contact ! virtual curr5cy kiosk op]ator's cu/om] s]vice helpl9e or ,/ate or local law en=cem5t if !y suspect fraudul5t activity4 7c7 ,ackn[l$gm5t ( disclosures ,ea* "t a cu/om] uses a virtual curr5cy kiosk1 ! virtual curr5cy kiosk op]ator %all ensure ackn[l$gm5t ( all disclosures requir$ "u subsection 7b7 via confirmation ( cons5t ( ! cu/om] at ! virtual curr5cy kiosk4 7d7 ,receipts ,^u completion ( ea* virtual curr5cy kiosk transaction1 ! virtual curr5cy kiosk op]ator %all provide ! cu/om] ) a receipt1 :i* %all include ! foll[+ in=mation3 7#a7 ,! "n & contact in=mation ( ! virtual curr5cy kiosk op]ator1 includ+ a telephone numb] = a cu/om] s]vice helpl9e4 7#b7 ,! "n ( ! cu/om]4 7#c7 ,! type1 value1 date1 & precise "t ( ! virtual curr5cy kiosk transaction1 transaction ha%1 & ea* applicable virtual curr5cy address4 7#d7 ,! am\nt ( ! virtual curr5cy kiosk transaction express$ 9 ,unit$ ,/ates doll>s4 7#e7 ,all fees *>g$4 7#f7 ,a /atem5t t ! cu/om] may be entitl$ by law to a refund if ! cu/om] reports fraudul5t activity 9 conjunction ) ! virtual curr5cy kiosk transaction n lat] ?an #cj days aft] ! date ( ! virtual curr5cy kiosk transaction4 7#g7 ,! refund policy ( ! virtual curr5cy kiosk op]ator or a ,uni=m ,res\rce ,locator :]e ! refund policy ( ! virtual curr5cy kiosk op]ator c be f\nd4 7#h7 ,a /atem5t t ! cu/om] %\ld contact law en=cem5t if !y suspect fraudul5t activity1 su* z scams1 includ+ contact in=mation = a relevant law en=cem5t or gov]nm5t ag5cy4 7#i7 ,any additional in=mation ! virtual curr5cy kiosk op]ator det]m9es appropriate4 7e7 ,physical receipts requir$ ,n lat] ?an #a ye> aft] ! effective date ( ?is section1 ea* receipt requir$ "u subsection 7d7 %all be issu$ to ! cu/om] z a physical receipt at ! virtual curr5cy kiosk at ! "t ( ! virtual curr5cy kiosk transaction1 b su* receipt may also be provid$ 9 additional =ms or communications4 7f7 ,anti-,fraud policy 7#a7 ,9 g5]al ,ea* virtual curr5cy kiosk op]ator %all take reasonable /eps to detect & prev5t fraud1 includ+ e/abli%+ & ma9ta9+ a writt5 anti-fraud policy t includes-- 7,a7 ! id5tification & assessm5t ( fraud-relat$ risk areas2 7,b7 proc$ures & controls to protect aga9/ risks id5tifi$ "u subp>agraph 7,a72 7,c7 allocation ( responsibility = monitor+ ! risks id5tifi$ "u subp>agraph 7,a72 & 7,d7 proc$ures = ! p]iodic evaluation & revision ( ! anti-fraud proc$ures1 controls1 & monitor+ me*anisms "u subp>agraphs 7,b7 & 7,c74 7#b7 ,submission ( anti-fraud policy to ,fin,c,e,n ,ea* virtual curr5cy kiosk op]ator %all submit to ,fin,c,e,n ! anti-fraud policy requir$ "u p>agraph 7#a7 n lat] ?an #ij days aft] ! lat] (-- 7,a7 ! effective date ( ?is section2 or 7,b7 ! date on :i* ! virtual curr5cy kiosk op]ator beg9s op]at+4 7g7 ,appo9tm5t ( compliance (fic] ,ea* virtual curr5cy kiosk op]ator %all designate & employ a compliance (fic] :o-- 7#a7 is qualifi$ to coord9ate & monitor compliance ) ?is section & all o!r applicable ,f$]al & ,/ate laws1 rules1 & regulations2 7#b7 is employ$ full-"t by ! virtual curr5cy kiosk op]ator2 7#c7 is n ! *ief executive (fic] ( ! virtual curr5cy kiosk op]ator2 & 7#d7 does n own or control m ?an #bj p]c5t ( any int]e/ 9 ! virtual curr5cy kiosk op]ator4 7h7 ,use ( block*a9 analytics 7#a7 ,9 g5]al ,ea* virtual curr5cy kiosk op]ator %all use block*a9 analytics to prev5t s5d+ virtual curr5cy to a virtual curr5cy wallet kn[n to be affiliat$ ) fraudul5t activity at ! "t ( a virtual curr5cy kiosk transaction & to detect transaction patt]ns indicative ( fraud or o!r illicit activities4 7#b7 ,compliance ,! ,director ( ,fin,c,e,n may reque/ evid5ce f any virtual curr5cy kiosk op]ator to confirm compliance ) ?is subsection4 7i7 ,v]bal confirmation requir$ be=e new cu/om] transactions 7#a7 ,9 g5]al ,be=e ent]+ into a virtual curr5cy kiosk transaction valu$ at #ejj doll>s or m ) a new cu/om]1 a virtual curr5cy kiosk op]ator %all obta9 v]bal confirmation f ! new cu/om] t-- 7,a7 ! new cu/om] wi%es to proce$ ) ! virtual curr5cy kiosk transaction2 7,b7 ! new cu/om] und]/&s ! nature ( ! virtual curr5cy kiosk transaction2 & 7,c7 ! new cu/om] is n be+ fraudul5tly induc$ to engage 9 ! transaction4 7#b7 ,reasonable ef=t ,a virtual curr5cy kiosk op]ator %all make a reasonable ef=t to det]m9e :e!r ! cu/om] is be+ fraudul5tly induc$ to engage 9 ! virtual curr5cy kiosk transaction4 7#c7 ,me?od ( confirmation ,ea* v]bal confirmation requir$ "u p>agraph 7#a7 %all be giv5 by way ( a live telephone or video call to a p]son employ$ by1 or on behalf (1 ! virtual curr5cy kiosk op]ator4 7j7 ,refunds 7#a7 ,9 g5]al 7,a7 ,new cu/om]s ,n lat] ?an #cj days aft] receiv+ an application "u p>agraph 7#b71 a virtual curr5cy kiosk op]ator %all issue a refund to a cu/om] = ! full am\nt ( ea* virtual curr5cy kiosk transaction1 includ+ ! doll> value ( virtual curr5cy ex*ang$ & all transaction fees1 made dur+ ! p]iod 9 :i* ! cu/om] 0 a new cu/om] & = :i* ! cu/om] 0 fraudul5tly induc$ to engage 9 ! virtual curr5cy kiosk transaction4 7,b7 ,exi/+ cu/om]s ,n lat] ?an #cj days aft] receiv+ an application "u p>agraph 7#b71 a virtual curr5cy kiosk op]ator %all issue a refund to a cu/om] = ! full am\nt ( all transaction fees associat$ ) ea* virtual curr5cy kiosk transaction made dur+ ! p]iod 9 :i* ! cu/om] 0 an exi/+ cu/om] & = :i* ! cu/om] 0 fraudul5tly induc$ to engage 9 ! virtual curr5cy kiosk transaction4 7#b7 ,application ,a cu/om] seek+ a refund "u p>agraph 7#a7 %all1 n lat] ?an #cj days aft] ! date ( ! virtual curr5cy kiosk transaction1 submit an application to ! virtual curr5cy kiosk op]ator t includes ! foll[+3 7,a7 ,! "n1 address1 & phone numb] ( ! cu/om]4 7,b7 ,! transaction ha% ( ! virtual curr5cy kiosk transaction or in=mation suffici5t to det]m9e ! type1 value1 date1 & "t ( ! virtual curr5cy kiosk transaction4 7,c7 ,a copy ( a report to a ,/ate or local law en=cem5t or gov]nm5t ag5cy1 made n lat] ?an #cj days aft] ! virtual curr5cy kiosk transaction1 t includes a sworn affidavit atte/+ t ! cu/om] 0 fraudul5tly induc$ to engage 9 ! virtual curr5cy kiosk transaction4 7#c7 ,enhanc$ damages ,any p]son :o willfully d5ies a refund to a cu/om] 9 violation ( p>agraph 7#a7 %all be liable to ! cu/om] = #c times ! am\nt ( ! refund ow$ "u t p>agraph or #aj1jjj1 :i*ev] is great]4 ,a p5alty "u ?is p>agraph %all be 9 addition to any p5alty "u subsection 7n74 7k7 ,transaction limits ) respect to new cu/om]s 7#a7 ,9 a #bd-;h\r p]iod ,a virtual curr5cy kiosk op]ator %all n accept m ?an #b1jjj1 or ! equival5t am\nt 9 virtual curr5cy1 f any new cu/om] dur+ any #bd-;h\r p]iod4 7#b7 ,total ,a virtual curr5cy kiosk op]ator %all n accept a total ( m ?an #aj1jjj1 or ! equival5t am\nt 9 virtual curr5cy1 f any new cu/om]4 7l7 ,cu/om] s]vice helpl9e ,ea* virtual curr5cy kiosk op]ator %all provide live cu/om] s]vice dur+ all h\rs t ! virtual curr5cy kiosk op]ator accepts virtual curr5cy kiosk transactions1 ! phone numb] = :i* is regul>ly monitor$ & display$ 9 a cle>1 conspicu\s1 & easily readable mann] ^u ea* virtual curr5cy kiosk4 7m7 ,communications ) law en=cem5t 7#a7 ,9 g5]al ,ea* virtual curr5cy kiosk op]ator %all provide a d$icat$ & frequ5tly monitor$ phone numb] & email address = relevant law en=cem5t & gov]nm5t ag5cies to facilitate communication ) ! virtual curr5cy kiosk op]ator 9 ! ev5t ( report$ or suspect$ fraudul5t activity4 7#b7 ,submission ,n lat] ?an #ij days aft] ! effective date ( ?is section1 ea* virtual curr5cy kiosk op]ator %all submit ! phone numb] & email address describ$ 9 p>agraph 7#a7 to ,fin,c,e,n & all o!r relevant law en=cem5t & gov]nm5t ag5cies4 7n7 ,civil p5alties 7#a7 ,9 g5]al ,any p]son :o fails to comply ) any requirem5t ( ?is section1 or any regulation prescrib$ "u ?is section1 %all be liable to ! ,unit$ ,/ates = a civil monet>y p5alty ( #aj1jjj = ea* su* violation4 7#b7 ,cont9u+ violation ,ea* day t a violation describ$ 9 p>agraph 7#a7 cont9ues %all con/itute a sep>ate violation = purposes ( su* p>agraph4 7#c7 ,assessm5ts ,any p5alty impos$ "u ?is section %all be assess$ & collect$ by ! ,secret>y ( ! ,treasury z provid$ 9 section #ecba & any su* assessm5t %all be subject to ! provisions ( t section4 7o7 ,relation%ip to ,/ate laws ,! provisions ( ?is section %all preempt any ,/ate law1 rule1 or regulation only to ! ext5t t su* ,/ate law1 rule1 or regulation conflicts ) a provision ( ?is section4 ,no?+ 9 ?is section %all be con/ru$ to prohibit a ,/ate f enact+ a law1 rule1 or regulation t provides great] protection to cu/om]s ?an ! protection provid$ by ! provisions ( ?is section4 4 7b7 ,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 ,virtual curr5cy kiosk fraud prev5tion4 4 #d4 ,effective date ,! am5dm5ts made by ?is ,act %all take effect #ij days aft] ! date ( enactm5t ( ?is ,act4