Vermont § 2577 - Virtual-currency kiosk operators

§ 2577. Virtual-currency kiosk operators

• (a) Daily transaction limit. (1) A virtual-currency kiosk operator shall not accept or dispense more than $2,000.00
  of cash in a day in connection with virtual-currency transactions with a single, new
  customer in this State via one or more virtual-currency kiosks. (2) A virtual-currency kiosk operator shall not accept or dispense more than $5,000.00
  of cash in a day in connection with virtual-currency transactions with a single, existing
  customer in this State via one or more virtual-currency kiosks. (b) Fee cap. The aggregate fees and charges, directly or indirectly, charged to a customer related
  to a single transaction or series of related transactions involving virtual currency
  effected through a money transmission kiosk in this State, including any difference
  between the price charged to a customer to buy, sell, exchange, swap, or convert virtual
  currency and the prevailing market value of such virtual currency at the time of such
  transaction, shall not exceed the greater of the following: (1) $5.00; or (2) 15 percent of the U.S. dollar equivalent of virtual currency involved in the transaction
  or transactions. (c) Single transaction. The purchase, sale, exchange, swap, or conversion of virtual currency, or the subsequent
  transfer of virtual currency, in a series of transactions shall be deemed to be a
  single transaction for purposes of subsections (a) and (b) of this section. (d) Licensing requirement. A virtual-currency kiosk operator shall comply with the licensing requirements of
  this subchapter to the extent that the virtual-currency kiosk operator engages in
  virtual-currency business activity. (e) Operator accountability. If a virtual-currency kiosk operator allows or facilitates another person to engage
  in virtual-currency business activity via a virtual-currency kiosk in this State that
  is owned, operated, or managed by the virtual-currency kiosk operator, the virtual-currency
  kiosk operator shall do all of the following: (1) ensure that the person engaging in virtual-currency business activity is licensed
  under subchapter 2 of this chapter to engage in virtual-currency business activity
  and complies with all other applicable provisions of this chapter; (2) ensure that any charges collected from a customer via the virtual-currency kiosk comply
  with the fee cap established in subsection (b) of this section; and (3) comply with all other applicable provisions of this chapter. (f) Moratorium. To protect the public safety and welfare and safeguard the rights of consumers, virtual-currency
  kiosks shall not be permitted to operate in Vermont prior to July 1, 2026. This moratorium
  shall not apply to a virtual-currency kiosk that was duly licensed and operational
  in Vermont on or before June 30, 2024. (g) Customer identification. For each virtual-currency transaction occurring at a virtual-currency kiosk in this
  State, the virtual-currency kiosk operator shall verify the identity of the customer
  prior to accepting payment from the customer. A virtual-currency kiosk operator shall
  not allow a customer to engage in any transaction at a virtual-currency kiosk under
  any name, account, or identity other than the customer’s own true name and identity.
  A virtual-currency kiosk operator shall obtain a copy of a government-issued identification
  card that identifies the customer and shall collect additional customer information,
  including the customer’s name, date of birth, telephone number, address, and email
  address prior to accepting any payment from a customer at a virtual-currency kiosk
  in this State. In addition, a virtual-currency kiosk operator shall take a photograph
  of the customer in a retainable format at the virtual-currency kiosk for each transaction.
  A virtual-currency kiosk operator shall be strictly liable for any violation of this
  subsection. (h) Customer support. A virtual-currency kiosk operator shall offer live, toll-free, telephone customer
  support during the hours of operation of a virtual-currency kiosk. The customer support
  telephone number shall be displayed on the virtual-currency kiosk or on the virtual-currency
  kiosk screen. (i) Mandatory live screening. (1) A virtual-currency kiosk operator shall identify and speak by telephone with: (A) a new customer over 60 years of age prior to such customer’s first virtual-currency
  transaction with the virtual-currency kiosk operator; or (B) a customer attempting to conduct more than $5,000.00 in virtual-currency transactions
  during any consecutive 10-day period. (2) The virtual-currency kiosk operator’s approval of a transaction subject to a mandatory
  live screening under this subsection shall be dependent upon its assessment of its
  communication with the customer during the screening. (3) A virtual-currency kiosk operator shall record and retain a copy of each mandatory
  live screening. (4) During the mandatory live screening, the virtual-currency kiosk operator shall: (A) positively identify the customer; (B) reconfirm any attestations made by the customer at the virtual-currency kiosk; (C) discuss the purpose of the transaction; and (D) discuss types of fraudulent schemes relating to virtual currency. (j) Blockchain analytics. A virtual-currency kiosk operator shall use blockchain analytics software and retain
  an established third party that specializes in performing blockchain analytics to
  assist in the prevention of sending purchased virtual currency from a virtual-currency
  kiosk operator to a digital wallet known to be affiliated with fraudulent activity
  at the time of a transaction. The Commissioner may request evidence from any virtual-currency
  kiosk operator of its current use of blockchain analytics. (k) Full refund for new customers. The virtual-currency kiosk operator shall provide a full refund to a customer who
  was fraudulently induced to engage in a virtual-currency kiosk transaction, provided
  the fraudulently induced transaction occurred while the customer was a new customer
  and further provided the customer contacts the virtual-currency kiosk operator and
  a law enforcement or government agency to inform the operator and the agency of the
  fraudulent nature of the transaction within 90 days after the customer’s last virtual-currency
  transaction with the virtual-currency kiosk operator. The refund shall include any
  fees charged in association with the fraudulently induced transaction. (l) Fee refund for existing customers. The virtual-currency kiosk operator shall provide a fee refund to an existing customer
  who has been fraudulently induced to engage in a virtual-currency kiosk transaction,
  provided the customer contacts the virtual-currency kiosk operator and a law enforcement
  or government agency to inform the operator and the agency of the fraudulent nature
  of the transaction within 90 days after the last fraudulently induced transaction.
  The refund shall include all fees charged in association with the fraudulently induced
  transaction. (m) Fraud prevention. A virtual-currency kiosk operator shall take reasonable steps to detect and prevent
  fraud, including establishing and maintaining a written antifraud policy. The antifraud
  policy shall, at a minimum, include the following: (1) the identification and assessment of fraud-related risk areas; (2) procedures and controls to protect against identified risks; (3) allocation of responsibility for monitoring risks; (4) procedures for the periodic evaluation and revision of the antifraud procedures, controls,
  and monitoring mechanisms; (5) procedures and controls that prevent more than one customer from using the same digital
  wallet; (6) procedures and controls that enable the virtual-currency kiosk operator to prevent
  a digital wallet from being used at a virtual-currency kiosk it operates if the operator
  knows or reasonably should know the digital wallet is affiliated with fraudulent activities;
  and (7) policies and procedures for using a risk-based method for monitoring customers on
  a post transaction basis. (n) Due diligence policy. A virtual-currency kiosk operator shall maintain, implement, and enforce a written
  Enhanced Due Diligence Policy. The Policy shall be reviewed and approved by the virtual-currency
  kiosk operator’s board of directors or an equivalent governing body of the virtual-currency
  kiosk operator. The Policy shall identify, at a minimum, individuals who are at risk
  of fraud based on age or mental capacity. (o) Compliance policies. A virtual-currency kiosk operator shall maintain, implement, and enforce written compliance
  policies and procedures. Such policies and procedures shall be reviewed and approved
  by the virtual-currency kiosk operator’s board of directors or an equivalent governing
  body of the virtual-currency kiosk operator. (p) Compliance officer. (1) A virtual-currency kiosk operator shall designate and employ a compliance officer
  who meets the following requirements: (A) is qualified to coordinate and monitor compliance with this section and all other
  applicable federal and State laws and regulations; (B) is employed full-time by the virtual-currency kiosk operator; and (C) is not an individual who owns more than 20 percent of the virtual-currency kiosk operator
  by whom the individual is employed. (2) Compliance responsibilities required under federal and State law and regulation shall
  be completed by one or more full-time employees of the virtual-currency kiosk operator. (q) Consumer protection officer. A virtual-currency kiosk operator shall designate and employ a consumer protection
  officer who meets the following requirements: (1) is qualified to coordinate and monitor compliance with this section and all other
  applicable federal and State laws and regulations; (2) is employed full-time by the virtual-currency kiosk operator; and (3) is not an individual who owns more than 20 percent of the virtual-currency kiosk operator
  by whom the individual is employed. (r) The Commissioner may adopt rules the Commissioner deems necessary and proper to carry
  out the purposes of this section, including with respect to what constitutes fraudulent
  activity or a fraudulently induced transaction in the context of customer transactions
  at a virtual-currency kiosk. (Added 2023, No. 110 (Adj. Sess.), § 48, eff. July 1, 2024; amended 2025, No. 23, § 24, eff. July 1, 2025.)