SB 401: Digital financial asset transaction kiosks.

Existing law requires a bank, savings association, credit union, industrial loan company, savings bank, or other business entity, or a person who operates an automated teller machine to adopt procedures for evaluating the safety of an automated teller machine, including the incidence of crimes of violence in the immediate neighborhood of the automated teller machine as reflected in the records of the local law enforcement agency and of which the operator has actual knowledge.

This bill would provide for the regulation of digital financial asset transaction kiosks, as defined, by the Department of Financial Protection and Innovation. The bill would, among other things, prohibit an operator, as defined, from accepting or dispensing more than $1,000 in a day from or to a customer via a digital financial asset transaction kiosk. The bill would require, on or after January 1, 2025, an operator, before a digital financial asset transaction, to provide a written disclosure in English and in the same language principally used by the operator to advertise, solicit, or negotiate with a customer containing the terms and conditions of the transaction, including the amount of a digital financial asset involved in the transaction. The bill would require an operator to provide a customer with a receipt for any transaction made at the operators digital financial asset transaction kiosk that includes certain information, including the name of the customer and the date and time of the transaction. The bill would require an operator to provide to the department a list of all locations of digital financial asset transaction kiosks that the operator owns, operates, or manages in this state and would require the department to make that list for each operator available to the public on the departments internet website.

This bill would become operative only if AB 39 of the 202324 Regular Session is enacted and takes effect on or before January 1, 2024.