House Bill 303 Alabama 2026 Session

Summary

Primary Sponsor

Russell BedsoleRepresentative

Republican

Session

2026 Regular Session

Title

Cryptocurrency; measures to prevent fraud by cryptocurrency kiosk operators imposed, penalties established, Alabama Securities Commission authorized to enforce

Summary

HB303 would require Alabama cryptocurrency kiosks to disclose terms, issue receipts, prevent fraud, and refund fraud-induced transactions, with penalties for violations.

What This Bill Does

It creates the Cryptocurrency Kiosk Fraud Prevention Act (8-7A-28) and sets rules for disclosures, receipts, fraud prevention, transaction limits, identity checks, and refunds. It requires operators to use blockchain analytics to block fraud-related transactions and to provide clear disclosures and receipts to consumers. It also establishes enforcement by the Alabama Securities Commission, imposes civil penalties, and requires compliance with federal reporting laws.

Who It Affects

• Cryptocurrency kiosk operators in Alabama must follow disclosure, receipt, fraud-prevention, transaction-limit, and reporting requirements, and comply with enforcement and penalty provisions.
• Consumers using cryptocurrency kiosks in Alabama will receive required disclosures and receipts, face fraud-prevention measures, be subject to transaction limits, and may be eligible for refunds if fraud occurs.

Key Provisions

• Establishes the Cryptocurrency Kiosk Fraud Prevention Act (8-7A-28) with definitions for key terms (e.g., blockchain analytics, consumer, operator, cryptocurrency, privacy coin).
• Operators must disclose all relevant terms and conditions, receive consumer acknowledgment, and include: crypto amount, all fees, total value, and exchange rate differences.
• Disclosures must be shown at the start of the transaction in conspicuous font/color and must be accepted separately before the transaction proceeds.
• Operators must provide a receipt after each transaction with detailed information (operator contact, transaction type/value/date/time, addresses, fees, exchange rate, refund policy; digital receipts must include the transaction hash).
• Operators must use blockchain analytics/tracing software to block transactions involving addresses linked to fraud or crime; such transactions must not be executed.
• New consumer limits: no more than $1,000 per day or $10,000 per month in cash (or equivalent in other currencies) from the same consumer; existing consumer limit: up to $10,500 per day.
• Identity verification is required for every transaction; enhanced due diligence is required for consumers 60 years or older.
• Operators must provide a US-based toll-free consumer service and a dedicated contact line; they must report fraud-related calls to the commission on request.
• A dedicated communication line must be kept between operators and government agencies; the operator must provide data from blockchain analytics to the commission when requested.
• Fraud refunds: new fraud victims receive a full refund of the transaction and fees; existing victims receive a refund of one-half of the transaction value plus fees, contingent on specific steps (notify operator and law enforcement/commission within 60 days and provide a law enforcement report).
• Kiosks must not be branded as affiliated with financial institutions and must not display signage implying such affiliation.
• Operators must comply with federal reporting requirements (Bank Secrecy Act, USA PATRIOT Act, and related rules) and other applicable financial crime reporting.
• Privacy coins are not allowed to be bought, sold, or sent from kiosks or online platforms.
• The Alabama Securities Commission may assess civil penalties for violations; proceedings do not preempt criminal action or other liability under state law.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Businesses & Financial Institutions