Laws 2025, ch. 171 (HB2387), cryptocurrency kiosk; license; fraud prevention
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Senate Engrossed House Bill
cryptocurrency kiosk; license; fraud prevention
State of Arizona
House of Representatives
Fifty-seventh Legislature
First Regular Session
2025
CHAPTER 171
HOUSE BILL 2387
AN ACT
AMENDING TITLE 6, CHAPTER 12, ARTICLE 1, ARIZONA REVISED STATUTES, BY
ADDING SECTION 6-1236; RELATING TO MONEY TRANSMISSION.
(TEXT OF BILL BEGINS ON NEXT PAGE)
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H.B. 2387
1 Be it enacted by the Legislature of the State of Arizona:
2 Section 1. Title 6, chapter 12, article 1, Arizona Revised
3 Statutes, is amended by adding section 6-1236, to read:
4 6-1236. Cryptocurrency kiosk operator; disclosures; receipt;
5 fraud prevention; refunds; enforcement; definitions
6 A. A CRYPTOCURRENCY KIOSK OPERATOR SHALL DISCLOSE IN A CLEAR,
7 CONSPICUOUS AND EASILY READABLE AND UNDERSTANDABLE MANNER IN THE CHOSEN
8 LANGUAGE OF THE CUSTOMER ALL RELEVANT TERMS AND CONDITIONS THAT ARE
9 GENERALLY ASSOCIATED WITH THE PRODUCTS, SERVICES AND ACTIVITIES OF THE
10 CRYPTOCURRENCY KIOSK OPERATOR AND VIRTUAL CURRENCY. THE CRYPTOCURRENCY
11 KIOSK OPERATOR SHALL RECEIVE AN ACKNOWLEDGMENT OF RECEIPT OF ALL
12 DISCLOSURES REQUIRED UNDER THIS SECTION FROM A CUSTOMER THROUGH
13 CONFIRMATION OR CONSENT.
14 B. A CRYPTOCURRENCY KIOSK OPERATOR SHALL PROVIDE THE FOLLOWING
15 DISCLOSURES SEPARATELY IN A FONT THAT CONTRASTS WITH THE BACKGROUND WHERE
16 THE WRITTEN WARNING APPEARS AND THE CUSTOMER MUST ACCEPT THE TWO SEPARATE
17 DISCLOSURES BEFORE EXECUTING A CRYPTOCURRENCY KIOSK TRANSACTION:
18 1. WARNING: CONSUMER FRAUD OFTEN STARTS WITH CONTACT
19 FROM A STRANGER WHO IS INITIATING A DISHONEST SCHEME OR A
20 CRIMINAL OR FRAUDULENT ACTIVITY THAT MAY APPEAR IN MANY FORMS,
21 INCLUDING ANY OF THE FOLLOWING:
22 (a) CLAIMS OF A FROZEN BANK ACCOUNT OR CREDIT CARD.
23 (b) CLAIMS OF A FRAUDULENT BANK TRANSACTION.
24 (c) CLAIMS OF IDENTITY THEFT OR AN OFFER OF EMPLOYMENT
25 IN EXCHANGE FOR PAYMENT.
26 (d) REQUESTS FOR A PAYMENT TO A GOVERNMENT AGENCY OR
27 COMPANY.
28 (e) REQUESTS FOR DISASTER RELIEF DONATIONS OR LOANS.
29 (f) OFFERS TO PURCHASE LOTTERY TICKETS OR SWEEPSTAKES
30 OR DRAWINGS FOR VEHICLES.
31 (g) PROMPTS TO CLICK ON DESKTOP POP-UPS THAT INCLUDE
32 VIRUS WARNINGS OR COMMUNICATION FROM ALLEGED FAMILIAR
33 MERCHANTS.
34 (h) COMMUNICATION FROM SOMEONE IMPERSONATING A
35 REPRESENTATIVE OF YOUR BANK OR A LAW ENFORCEMENT OFFICER.
36 IF YOU BELIEVE YOU HAVE BEEN SCAMMED, STOP AND CALL YOUR
37 LOCAL LAW ENFORCEMENT AND THE CRYPTOCURRENCY KIOSK OPERATOR.
38 2. WARNING: LOSSES DUE TO FRAUDULENT OR ACCIDENTAL
39 TRANSACTIONS ARE NOT RECOVERABLE. TRANSACTIONS IN VIRTUAL
40 CURRENCY ARE IRREVERSIBLE. PEOPLE MAY USE VIRTUAL CURRENCY
41 TRANSACTIONS TO STEAL YOUR MONEY BY IMPERSONATING THE
42 GOVERNMENT, ORGANIZATIONS OR PEOPLE YOU KNOW. IMPERSONATORS
43 MAY THREATEN JAIL TIME, SAY YOUR IDENTITY HAS BEEN STOLEN,
44 ALLEGE YOUR COMPUTER HAS BEEN HACKED, INSIST YOU WITHDRAW
45 MONEY FROM YOUR BANK ACCOUNT TO PURCHASE VIRTUAL CURRENCY OR
46 USE A NUMBER OF OTHER SCAMS. DO NOT DISCLOSE YOUR PRIVATE KEY
47 THAT IS ASSOCIATED WITH YOUR VIRTUAL WALLET TO A THIRD PARTY.
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H.B. 2387
1 IF YOU BELIEVE YOU ARE BEING SCAMMED, STOP AND CALL YOUR LOCAL
2 LAW ENFORCEMENT AND THE CRYPTOCURRENCY KIOSK OPERATOR.
3 C. ON THE COMPLETION OF EACH CRYPTOCURRENCY KIOSK TRANSACTION, THE
4 CRYPTOCURRENCY KIOSK OPERATOR SHALL PROVIDE THE INDIVIDUAL WHO MADE THE
5 TRANSACTION AT THE CRYPTOCURRENCY KIOSK WITH A PHYSICAL OR DIGITAL RECEIPT
6 IN THE LANGUAGE CHOSEN BY THE INDIVIDUAL THAT CONTAINS ALL OF THE
7 FOLLOWING INFORMATION:
8 1. THE CRYPTOCURRENCY KIOSK OPERATOR'S NAME AND CONTACT
9 INFORMATION, INCLUDING A TELEPHONE NUMBER TO ANSWER QUESTIONS AND REGISTER
10 COMPLAINTS.
11 2. THE STATE AND LOCAL LAW ENFORCEMENT OR GOVERNMENT AGENCY THAT
12 RECEIVES COMPLAINTS OF FRAUD.
13 3. THE TYPE, VALUE, DATE AND PRECISE TIME OF A TRANSACTION, THE
14 TRANSACTION HASH AND EACH APPLICABLE VIRTUAL CURRENCY ADDRESS.
15 4. THE NAME AND CONTACT INFORMATION OF THE SENDER.
16 5. THE NAME, CONTACT INFORMATION AND VIRTUAL WALLET NUMBER OF THE
17 DESIGNATED RECIPIENT.
18 6. DAI FEES CHARGED. FOR THE PURPOSES OF THIS PARAGRAPH, "DAI"
19 MEANS A DECENTRALIZED STABLECOIN TOKEN THAT IS DESIGNED TO MAINTAIN A
20 VALUE OF THE UNITED STATES DOLLAR.
21 7. THE EXCHANGE RATE OF THE VIRTUAL CURRENCY TO THE UNITED STATES
22 DOLLAR.
23 8. A STATEMENT OF THE CRYPTOCURRENCY KIOSK OPERATOR'S REFUND
24 POLICY.
25 9. ANY ADDITIONAL INFORMATION THAT A GOVERNMENT AUTHORITY MAY
26 REQUIRE.
27 D. A CRYPTOCURRENCY KIOSK OPERATOR SHALL USE BLOCKCHAIN ANALYTICS
28 AND TRACING SOFTWARE TO HELP PREVENT FRAUD BY NOT SENDING PURCHASED
29 VIRTUAL CURRENCY FROM A CRYPTOCURRENCY KIOSK OPERATOR TO A VIRTUAL WALLET
30 KNOWN TO BE AFFILIATED WITH FRAUD AT THE TIME OF A TRANSACTION. A
31 RELEVANT GOVERNMENT AUTHORITY MAY REQUEST EVIDENCE FROM ANY CRYPTOCURRENCY
32 KIOSK OPERATOR OF CURRENT USE OF BLOCKCHAIN ANALYTICS.
33 E. ALL CRYPTOCURRENCY KIOSK OPERATORS SHALL TAKE REASONABLE STEPS
34 TO DETECT AND PREVENT FRAUD, INCLUDING ESTABLISHING AND MAINTAINING A
35 WRITTEN ANTI-FRAUD POLICY AND CONFORMING TO FEDERAL KNOW YOUR CONSUMER AND
36 ANTI-MONEY LAUNDERING LAWS.
37 F. A CRYPTOCURRENCY KIOSK OPERATOR MAY NOT ACCEPT TRANSACTIONS OF
38 MORE THAN $2,000 UNITED STATES DOLLARS IN CASH OR THE EQUIVALENT IN
39 VIRTUAL CURRENCY IN ONE DAY FROM A NEW CUSTOMER IN THIS STATE THROUGH ONE
40 OR MORE CRYPTOCURRENCY KIOSKS. FOR EXISTING CUSTOMERS, A CRYPTOCURRENCY
41 KIOSK OPERATOR SHALL ENSURE THAT THE CRYPTOCURRENCY KIOSK DOES NOT, IN
42 CONNECTION WITH CRYPTOCURRENCY SERVICES FOR A SINGLE PERSON IN THIS STATE
43 USING ONE OR MORE CRYPTOCURRENCY KIOSKS, ACCEPT OR DISPENSE IN A SINGLE
44 DAY MORE THAN $10,500.
45 G. ALL CRYPTOCURRENCY KIOSK OPERATORS PERFORMING BUSINESS IN THIS
46 STATE SHALL PROVIDE LIVE CUSTOMER SERVICE AT A MINIMUM OF TWENTY-FOUR
47 HOURS A DAY, SEVEN DAYS PER WEEK. THE CUSTOMER SERVICE TOLL-FREE NUMBER
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H.B. 2387
1 SHALL BE PROMINENTLY DISPLAYED ON THE CRYPTOCURRENCY KIOSK OR THE
2 CRYPTOCURRENCY KIOSK SCREENS.
3 H. IF A NEW CUSTOMER AS DEFINED IN SUBSECTION L, PARAGRAPH 7 OF
4 THIS SECTION HAS BEEN FRAUDULENTLY INDUCED TO ENGAGE IN A CRYPTOCURRENCY
5 KIOSK TRANSACTION, THE CRYPTOCURRENCY KIOSK OPERATOR SHALL ISSUE A FULL
6 REFUND FOR THE FRAUDULENTLY INDUCED CRYPTOCURRENCY KIOSK TRANSACTION,
7 INCLUDING ANY FEES CHARGED IN ASSOCIATION WITH THE TRANSACTION, IF THE NEW
8 CUSTOMER DOES ALL OF THE FOLLOWING:
9 1. CONTACTS THE CRYPTOCURRENCY KIOSK OPERATOR WITHIN THIRTY DAYS
10 AFTER THE CRYPTOCURRENCY KIOSK TRANSACTION.
11 2. CONTACTS A LAW ENFORCEMENT AGENCY OR THE ATTORNEY GENERAL WITHIN
12 THIRTY DAYS AFTER THE CRYPTOCURRENCY KIOSK TRANSACTION.
13 3. PROVIDES THE CRYPTOCURRENCY KIOSK OPERATOR WITH A REPORT FROM
14 THE LAW ENFORCEMENT AGENCY OR ATTORNEY GENERAL'S OFFICE THAT DETERMINES
15 THAT THE NEW CUSTOMER WAS FRAUDULENTLY INDUCED TO ENGAGE IN A
16 CRYPTOCURRENCY KIOSK TRANSACTION.
17 I. A VICTIM OF FRAUD IS ELIGIBLE TO RECEIVE A REFUND EVEN IF A
18 CRYPTOCURRENCY KIOSK OPERATOR PROVIDES THE REQUIRED DISCLOSURES PRESCRIBED
19 IN SUBSECTIONS A AND B OF THIS SECTION AND THE RECEIPT PRESCRIBED IN
20 SUBSECTION C OF THIS SECTION.
21 J. THE ATTORNEY GENERAL SHALL ENFORCE THIS SECTION. ANY ACT OR
22 PRACTICE THAT VIOLATES THIS SECTION IS A VIOLATION OF SECTION 44-1522.
23 K. NOTWITHSTANDING ANY OTHER LAW, ALL INDIVIDUALS OR ENTITIES
24 SUBJECT TO THIS SECTION SHALL BE CLASSIFIED AS A NEW CUSTOMER FOR THE
25 PURPOSES OF COMPLIANCE ON THE EFFECTIVE DATE OF THIS SECTION. A NEW
26 CUSTOMER AUTOMATICALLY CONVERTS TO AN EXISTING CUSTOMER TEN DAYS AFTER
27 BECOMING A NEW CUSTOMER. AN EXISTING CUSTOMER IS SUBJECT TO THE
28 TRANSACTION LIMITS PRESCRIBED IN THIS SECTION.
29 L. FOR THE PURPOSES OF THIS SECTION:
30 1. "BLOCKCHAIN ANALYTICS" MEANS THE ANALYSIS OF DATA FROM
31 BLOCKCHAINS OR PUBLIC DISTRIBUTED LEDGERS, INCLUDING ASSOCIATED
32 TRANSACTION INFORMATION.
33 2. "BLOCKCHAIN ANALYTICS AND TRACING SOFTWARE" MEANS A SOFTWARE
34 SERVICE THAT USES BLOCKCHAIN ANALYTICS DATA TO PROVIDE RISK-SPECIFIC
35 INFORMATION AND TRACING OF VIRTUAL CURRENCY WALLET ADDRESSES, AMONG OTHER
36 VIRTUAL ITEMS.
37 3. "CRYPTOCURRENCY KIOSK":
38 (a) MEANS A PHYSICAL, ELECTRONIC TERMINAL THAT IS A MECHANICAL
39 AGENT OF THE CRYPTOCURRENCY KIOSK OPERATOR AND THAT ENABLES A
40 CRYPTOCURRENCY KIOSK OPERATOR TO FACILITATE THE PURCHASE, SALE OR EXCHANGE
41 OF CRYPTOCURRENCY FOR MONEY, BANK CREDIT OR ANY OTHER VIRTUAL CURRENCY.
42 (b) INCLUDES A VIRTUAL CURRENCY EXCHANGE, WHICH PERFORMS THE ACTUAL
43 VIRTUAL CURRENCY TRANSMISSION OR DRAWING ON THE VIRTUAL CURRENCY THAT IS
44 IN THE POSSESSION OF THE ELECTRONIC TERMINAL OPERATOR.
45 4. "CRYPTOCURRENCY KIOSK OPERATOR" MEANS AN INDIVIDUAL OR ENTITY:
46 (a) THAT ENGAGES IN VIRTUAL CURRENCY BUSINESS ACTIVITY THROUGH A
47 MONEY TRANSMISSION KIOSK IN THIS STATE.
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H.B. 2387
1 (b) THAT OPERATES OR MANAGES A MONEY TRANSMISSION KIOSK WHERE
2 VIRTUAL CURRENCY BUSINESS ACTIVITY IS OFFERED IN THIS STATE.
3 5. "CRYPTOCURRENCY KIOSK TRANSACTION" MEANS BOTH:
4 (a) A TRANSACTION CONDUCTED OR PERFORMED, IN WHOLE OR IN PART, BY
5 ELECTRONIC MEANS THROUGH A CRYPTOCURRENCY KIOSK.
6 (b) A TRANSACTION MADE AT A CRYPTOCURRENCY KIOSK TO PURCHASE
7 VIRTUAL CURRENCY WITH FIAT CURRENCY OR TO SELL VIRTUAL CURRENCY FOR FIAT
8 CURRENCY.
9 6. "EXISTING CUSTOMER" MEANS A CONSUMER TRANSACTING AT A
10 CRYPTOCURRENCY KIOSK IN THIS STATE WHO HAS BEEN A CUSTOMER WITH A
11 CRYPTOCURRENCY KIOSK OPERATOR FOR AT LEAST TEN DAYS.
12 7. "NEW CUSTOMER" MEANS A CONSUMER TRANSACTING AT A CRYPTOCURRENCY
13 KIOSK IN THIS STATE WHO HAS BEEN A CUSTOMER OF A CRYPTOCURRENCY KIOSK
14 OPERATOR FOR LESS THAN TEN DAYS.
15 8. "TRANSACTION HASH" MEANS A UNIQUE IDENTIFIER MADE UP OF A STRING
16 OF CHARACTERS THAT ACTS AS A RECORD OF AND PROVIDES PROOF THAT THE
17 TRANSACTION WAS VERIFIED AND ADDED TO THE BLOCKCHAIN.
18 9. "VIRTUAL CURRENCY ADDRESS":
19 (a) MEANS A UNIQUE PUBLIC ALPHANUMERIC IDENTIFIER THAT IS
20 ASSOCIATED WITH A VIRTUAL CURRENCY TYPE AND WALLET AND THAT IDENTIFIES THE
21 LOCATION WHERE VIRTUAL CURRENCY TRANSACTION CAN BE SENT.
22 (b) IS REFERRED TO AS A PUBLIC KEY.
23 10. "VIRTUAL WALLET":
24 (a) MEANS A SOFTWARE APPLICATION OR OTHER MECHANISM THAT PROVIDES A
25 MEANS TO HOLD, STORE OR TRANSFER VIRTUAL CURRENCY OR NONFUNGIBLE TOKENS.
26 (b) INCLUDES A PUBLIC KEY, PRIVATE KEY AND A PUBLIC RECEIVING
27 ADDRESS. FOR THE PURPOSES OF THIS SUBDIVISION, A PRIVATE KEY MAY BE USED
28 TO SIGN FOR A TRANSACTION WHEN SENDING CRYPTOCURRENCY FROM A VIRTUAL
29 WALLET.
APPROVED BY THE GOVERNOR MAY 12, 2025.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 12, 2025.
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