ASSEMBLY REGULATED PROFESSIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5384

with committee amendments

STATE OF NEW JERSEY

DATED:  APRIL 10, 2025

      The Assembly Regulated Professions Committee reports favorably and with committee amendments Assembly Bill No. 5384.

     This bill establishes the “Virtual Currency Kiosk Consumer Protection Act.”

     As amended, under the bill, a virtual currency kiosk means, in part, an electronic terminal of the virtual currency kiosk operator that enables the owner or operator to facilitate the exchange of fiat currency for virtual currency or virtual currency for fiat currency or other virtual currency.  A notice is to be displayed on or near a kiosk and state, in a clear and conspicuous manner, that the kiosk is not an automated teller machine dispensing United States dollars.  The kiosk operator is to provide numerous disclosures to customers to ensure the customer is aware of the threats and possible outcomes as a result of using a virtual currency kiosk.  This includes, among other items, disclosure that virtual currency is not legal tender; notice of the customer’s liability for unauthorized virtual currency transactions; and the posting of a notice, at or near the kiosk, of a warning of potential scams that may lead a customer to use a kiosk.

     A virtual currency kiosk operator is to employ a compliance officer and a consumer protection officer to ensure the kiosk operates as required and that consumers are receiving the required disclosures.  The operator is to obtain a license from the New Jersey Department of Banking and Insurance as a money transmitter to operate the kiosk.  Additionally, an operator is issue quarterly reports to the Department on the locations of its virtual currency kiosks.  The bill stipulates that the location of a virtual currency kiosk is to only be in a secure area, including, but not limited to, banks with functioning security cameras and lighting.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  require a notice on or near a virtual currency kiosk that states the kiosk is not an automated teller machine dispensing United States dollars;

      (2)  limit the location of virtual currency kiosks to secure areas, including in banks, that have functioning security cameras and lighting; and

      (3)  make technical corrections.