Crypto kiosk consumer protection bill sent to governor

House Bill 920 would create statewide rules for virtual currency kiosks, including consumer disclosures, fraud warnings and oversight by the Commissioner of Banks.

RALEIGH — A bill creating statewide consumer protection rules for virtual currency kiosks was presented to Gov. Josh Stein on July 6 after passing both chambers of the General Assembly without opposition in its latest votes.

House Bill 920, titled the “Virtual Currency Kiosk Consumer Protection Act,” was ratified July 2 and presented to the governor July 6, according to the General Assembly bill page. The measure is a public bill with no counties specifically cited, meaning it would apply statewide if signed into law.

The bill page lists affected areas including banking, commerce, consumer protection, financial institutions, financial services, identification systems, investments, privacy, taxation, the Commissioner of Banks and cryptocurrency and NFTs.

The latest recorded votes show broad support. The Senate approved the bill 49-0 on second reading June 30, and the House concurred in the Senate committee substitute 115-0 on July 1. The bill was ordered enrolled July 1 and ratified July 2.

A General Assembly bill analysis says the measure would create a new article under Chapter 53 of the General Statutes regulating virtual currency kiosk operators. It places oversight authority with the North Carolina Commissioner of Banks.

Virtual currency kiosks, sometimes called cryptocurrency kiosks or ATMs, allow customers to exchange cash for digital assets. Lawmakers have considered consumer protection rules as scammers increasingly use cryptocurrency transactions to move money quickly and, in many cases, irreversibly.

The bill analysis says House Bill 920 includes required disclosures before transactions, including warnings that virtual currency is not legal tender, is not backed by the government and may not be protected by federal deposit or securities insurance programs. It also includes fraud-screening provisions, transaction limits, receipt requirements, customer service requirements, anti-fraud and compliance policies, fee caps and potential refund provisions for certain fraudulent transactions reported to the Commissioner of Banks.

The governor may sign the bill, veto it or allow it to become law without his signature.

As of the latest General Assembly action, House Bill 920 had been presented to the governor but had not been listed as signed or vetoed.

Editor’s note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.