KRS 286.13-090: Transaction limits -- Delay for new users -- Charges -- Customer

service -- Notices at kiosk -- Disclosures -- Receipts -- Administrative

regulation. (Effective April 30, 2027)

(1) As used in this section:

(a) "New virtual currency kiosk user":

1. Means a virtual currency kiosk user:

a. On the day of the user's first virtual currency kiosk transaction

with the virtual currency kiosk operator; and

b. For twenty-nine (29) calendar days thereafter; and

2. Does not include a virtual currency kiosk user on any day that the user

enters a virtual currency kiosk transaction with the virtual currency

kiosk operator following twenty -nine (29) calendar days after the user's

first virtual currency kiosk transaction with the operator;

(b) "Virtual currency kiosk operator" includes an agent of the virtual currency

kiosk operator;

(c) "Virtual currency wallet" means a software application or other mechanism

providing a means to hold the keys necessary to access and transfer virtual

currency; and

(d) "Virtual currency wallet address" means an alphanumeric identifier associated

with a virtual currency wallet that identifies the location to which a virtual

currency transaction can be sent.

(2) A virtual currency kiosk operator shall:

(a) Have maximum virtual currency kiosk transaction limits that do not exceed:

1. Two thousand dollars ($2,000), or the equivalent in virtual currency, per

day for all virtual currency kiosk transactions entered with a virtual

currency kiosk user; and

2. Ten thousand five hundred dollars ($10,500), or the equivalent in virtual

currency, for all virtual currency kiosk transactions entered with a new

virtual currency kiosk user;

(b) Either:

1. Wait seventy-two (72) hours before processing a virtual currency kiosk

transaction for a new virtual currency kiosk user; or

2. At the operator's cost, allow a new virtual currency kiosk user to cancel,

and receive a full refund for, a virtual currency kiosk transaction within

seventy-two (72) hours after the transaction;

(c) Not collect, d irectly or indirectly, virtual currency kiosk charges from a

virtual currency kiosk user for any single virtual currency kiosk transaction

that exceeds the greater of:

1. Five dollars ($5); or

2. Eighteen percent (18%) of the value, in United States dollar s, of the

transaction;

(d) Provide live customer service via a toll -free telephone number during the

operating hours of each virtual currency kiosk in this state; and

(e) Provide the following notices at each virtual currency kiosk in this state:

1. The following warning, stating in substantially similar form:

"WARNING: This technology can be used to defraud you.

If someone asked you to deposit money in this machine and/or is on the

phone with you and claims to be a:

- Friend or family member;

- Government agent;

- Computer software representative;

- Bill collector;

- Law enforcement officer; or

- Anyone you do not know personally;

STOP THIS TRANSACTION IMMEDIATELY and contact your local

law enforcement and the virtual currency kiosk operator. This may be a

scam. NEVER SEND MONEY to someone you don't know.";

2. That virtual currency kiosk users can contact the following to report

fraud or suspected fraud:

a. Any relevant state and local law enforcement;

b. The department; and

c. The Attorney General;

3. The contact information, including a telephone number, for each of the

agencies referenced in subparagraph 2. of this paragraph;

4. The name, address, and toll -free customer service telephone number of

the virtual currency kiosk operator;

5. The days, times, and means by which a virtual currency kiosk user can

contact the virtual currency kiosk operator for assistance; and

6. The operator's dedicated United States telephone number or email

address for law enforcement, the department , and the Attorney General,

as required under KRS 286.13-095(6).

(3) The notices required under subsection (2)(e) of this section shall be:

(a) 1. On the virtual currency kiosk;

2. Near, and within readable sight of, the virtual currency kiosk; or

3. On the first screen of the virtual currency kiosk, which shall be viewable

by any person without requiring the person to input money, virtual

currency, data, or information; and

(b) Displayed prominently and in bold type.

(4) (a) Prior to entering a virtual cur rency kiosk transaction with a virtual currency

kiosk user, a virtual currency kiosk operator shall:

1. Provide accurate and appropriate disclosures to the user; and

2. Obtain an acknowledgment from the user that the user received the

disclosures.

(b) The disclosures required under paragraph (a) of this subsection shall:

1. Describe the terms and conditions of the transaction, which shall include

but not be limited to:

a. The amount of the transaction;

b. A description of all virtual currency kiosk charges, which shall be

disclosed to the user in United States dollars; and

c. The exchange rate of the virtual currency to the United States

dollar;

2. Describe all material risks associated with the virtual currency kiosk

transaction, including the following:

a. Virtual currency is not legal tender in the United States, is not

backed by the United States government, and accounts and value

balances are not subject to Federal Deposit Insurance Corporation,

National Credit Union Administration, or Securities Investo r

Protection Corporation protections;

b. Legislative and regulatory changes or actions at the state, federal,

or international level may adversely affect the value of virtual

currency;

c. Virtual currency value relative to the United States dollar may

fluctuate significantly;

d. Transactions in virtual currency may be irreversible, and

accordingly, losses due to fraudulent or accidental transactions

may not be recoverable;

e. Some virtual currency transactions may be immediately effective

when recorded on a public ledger, which is not necessarily the date

or time that the user initiates the transaction;

f. The value of virtual currency may be derived from the continued

willingness of market participants to exchange legal tender for

virtual currency, which may result in the potential for permanent

and total loss of value of a particular virtual currency if th e market

for the virtual currency declines or collapses for an extended

period of time;

g. Any bond required by KRS 286.13 -050 for the benefit of virtual

currency kiosk users may not be sufficient to cover all losses

incurred by the users;

h. Virtual curre ncy kiosk users should perform research before

purchasing or investing in virtual currency; and

i. The circumstances under which the virtual currency kiosk operator

will, in the ordinary course of business, disclose the user's

financial and account information to third parties;

3. Include any other terms, conditions, or information the commissioner

determines is necessary and appropriate to disclose to virtual currency

kiosk users;

4. Be made separately from any other information provided by a virtual

currency kiosk operator; and

5. Be clear, conspicuous, and in legible writing.

(5) (a) Upon completion of a virtual currency kiosk transaction, a virtual currency

kiosk operator shall provide a receipt in paper or electronic retainable form, as

designated under paragraph (b) of this subsection, to the virtual currency

kiosk user that contains all of the following information:

1. The name and toll -free customer service telephone number of the

operator;

2. The contact information required under subsection (2)(e)3. of this

section to report fraud or suspected fraud;

3. The type, value, date, and precise time of the transaction;

4. Each applicable virtual currency wallet address and transaction hash,

where available;

5. A description of all virtual currency kiosk cha rges, which shall be

disclosed in United States dollars;

6. The exchange rate of the virtual currency to the United States dollar;

7. The operator's liability for nondelivery or delayed delivery;

8. The operator's refund policy; and

9. Any additional information required by the commissioner.

(b) Each virtual currency kiosk user shall be provided the option to receive a

paper or electronic receipt for each virtual currency kiosk transaction.

(6) A virtual currency kiosk operator may provide additional notice s or disclosures, or

information on a receipt provided, to a virtual currency kiosk user.

(7) A fraud victim's eligibility for a refund shall not be waived, affected, or prevented

by, or due to, a disclosure made in accordance with this section.

(8) The no tices, disclosures, and receipts required under this section shall be in the

English language.

(9) The commissioner may promulgate an administrative regulation in accordance with

KRS Chapter 13A to:

(a) Establish the format of the notices required under su bsection (2)(e) of this

section;

(b) Establish any additional disclosures or information the commissioner requires

under subsection (4) or (5) of this section; and

(c) Require virtual currency kiosk operators to comply with one (1) or more

specified industry standards or practices if the commissioner determines that

compliance with the standard or practice is necessary to:

1. Ensure the lawful conduct of business under this subtitle; or

2. Protect the interest of the public.