House committee substitute to the 1st edition replaces the prior edition in its entirety with the following. Make conforming changes to act’s long and short titles.

Section 1.

Enacts Article 26, “The Virtual Kisok Consumer Protection Act,” to GS Chapter 53. Defines seventeen terms, including virtual currency kiosk (any fully automated electronic machine owned, operated, or used by a virtual currency kiosk operator that enables the owner or operator to facilitate the transfer of fiat currency to a public key that is recorded on the block chain, as directed by the customer), and virtual currency kiosk operator (any of the described companies operating a virtual currency kiosk in the State).

Designates information or reports obtained by the Commissioner of Banks (Commissioner) from a virtual currency kiosk operator confidential under new GS 53-443, including those contained in or related to an examination, investigation, operating report, or condition report prepared by, on behalf of, or for the use of the Commissioner, except for the described identifying information of a virtual currency kiosk operator and copies of any final orders of the Commission relation to any violation of new Article 26 or its implementing rules.

Specifies that federal law prevails if there is a conflict between any federal statute and new Article 26, federal law prevails.

Requires virtual currency kiosk operators to provide the Commission all records he may reasonably require to ensure compliance with new Article 26 in new GS 53-445. Prior to entering into any initial transaction with a customer, requires, in new GS 53-446 for each virtual currency kiosk operator to provide in clear, conspicuous, and legible writing in the English language, whether in accessible terms of service or elsewhere:

• all material risks associated with its products, services, and activities and virtual currency generally, including disclosures substantially similar to the five listed;
• All relevant terms and conditions associated with its products, services, and activities and virtual currency generally, including disclosures substantially similar to the nine listed.

Requires that the virtual currency kiosk operator provide a warning disclosure substantially similar to the one described before entering into a virtual currency transaction with a customer. Requires that all fees and expenses associated with the transaction, the exchange rate, the spread (amount, in United States dollars, of any difference between the United States dollar price of the virtual currency that is charged to the customer and the United States dollar price of the virtual currency as listed by a licensed virtual currency exchange), and any customer liability be disclosed in a clear and conspicuous manner before the completion of each virtual currency transaction.

Requires, in GS 53-447, that the owner or operator of a virtual currency kiosk provide the customer a receipt containing the 15 described pieces of information, including contact information for the Commissioner, fees, refund policies, and contact and identifying information for the virtual currency kiosk operator. Requires all virtual currency kiosk operators to use blockchain analytics software to assist in fraud prevention, as specified, in new GS 53-448. Requires all virtual currency kiosk operators to provide live customer service at a minimum Monday through Friday between 8:00 AM EST and 10:00 AM EST and to publicize the customer serve toll free number, in new GS 53-449. Requires virtual currency kiosk operators to establish and maintain a written anti-fraud policy in GS 53-450 to include identification of fraud related risk areas, procedures and controls to prevent against risks, allocation of responsibilities for risk monitoring, and procedures for periodic evaluation and revision of the ant-fraud procedures, controls, and monitoring mechanisms. Requires virtual currency kiosk operators to establish, enforce, and maintain written compliance policies and procedures approved by their board of directors or equivalent governing body in new GS 53-451. Requires virtual currency kiosk operators to designate and employ a compliance officer that meets the four requirements described and a consumer protection officer that meets the three requirements described. Provides for reporting requirements of each virtual currency kiosk operator’s virtual currency kiosk within 45 days of the end of the calendar quarter. Deems, in GS 53-455 any virtual currency kiosk operator who owns, operates, solicits, markets, advertises, or facilitates virtual currency kiosks in the State to be engaged in money transmission and must have the required licensure under Article 16B of GS Chapter 53.

Establishes the following daily transaction limits in GS 53-456:

• $1,000 for new virtual currency customers.  
• $2,500 for existing virtual currency customers.

Allows a customer to cancel any transaction for a full and immediate refund if its done before the transaction is completed. Caps fees at 3% of the USD equivalent of the virtual currency involved in the transaction or transactions. Sets out conditions under which an operator must refund the amount deposited into a kiosk.

Specifies that violation of Article 26 is an unfair trade practice in GS 53-547.

Makes it a Class 1 misdemeanor for a person to facilitate or induce a fraudulent virtual currency kiosk transaction in GS 53-458. Clarifies that new Article 26 does limit a local government’s authority to impose greater requirements or restrictions on virtual currency kiosks in GS 53-459

Section 2.

Contains a severability clause.

Section 3.

Instructs the Commissioner of Banks to adopt rules to implement the act by no later than December 1, 2026, effective when the act becomes law.

Section 4.

Effective December 1, 2026, except as otherwise provided and applies to offenses committed on or after that date.