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 creates the Cryptocurrency Kiosk Fraud Prevention Act to regulate Alabama cryptocurrency kiosks, require disclosures and receipts, provide fraud protections, and authorize enforcement by the Alabama Securities Commission.

What This Bill Does

If passed, the bill would require operators of cryptocurrency kiosks to disclose all terms in plain language, give receipts after transactions, display fraud warnings, and use blockchain analytics to stop fraudulent transactions. It imposes per-transaction and per-month limits for new and existing customers, along with identity verification and enhanced protections for older users. It also establishes refund rules for fraud, requires US-based customer support and government-facing contact lines, and authorizes penalties for violations.

Who It Affects

• Cryptocurrency kiosk operators in Alabama, who must implement disclosures, receipts, fraud protections, customer support, reporting, and potential civil penalties
• Consumers using cryptocurrency kiosks in Alabama (new and existing users), who receive disclosures, warnings, receipts, fraud protections including refunds for fraudulent transactions, and age-related enhancements

Key Provisions

• Creates the Cryptocurrency Kiosk Fraud Prevention Act (8-7A-28) in Alabama law.
• Operators must clearly disclose terms and obtain consumer acknowledgment before transactions; disclosures include USD amounts, all fees in USD, total transaction values in crypto and USD, and exchange rate differences.
• Requires upfront fraud warnings to be displayed and two disclosures to be accepted before proceeding.
• Requires a physical or digital receipt after each transaction with detailed information (operator contact, transaction details, fees, exchange rate, refund policy); digital receipts can be sent to the consumer and to the commission.
• Mandates use of blockchain analytics and tracing software to block transactions linked to fraud; otherwise the transaction cannot be executed.
• Imposes transaction limits: new consumers max $1,000 daily (or $10,000 monthly) or $10,000 per month, with monthly cap; existing consumers max $10,500 daily; requires identity verification per federal law.
• Provides enhanced due diligence protections for consumers age 60 and older; requires US-based toll-free consumer service and display of service number on kiosks.
• Requires a dedicated US-based communication line to government agencies and allows data sharing with authorities upon request.
• Establishes refund rules for fraud: full refund for new consumers; half refund for existing consumers, with steps including contacting operator, law enforcement, and the commission within 60 days and filing a report.
• Requires operators to maintain refund records and provide consumer contact information and receipt details to the commission upon request.
• Operators must not co-locate with financial institutions, must not imply affiliation with banks, and must comply with BSA/Patriot Act/OFAC reporting.
• Prohibits buying, selling, or sending of privacy coins from kiosks or online platforms.
• The Alabama Securities Commission may impose civil penalties for violations; proceedings do not preempt other criminal or civil actions under state law.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Apr 1, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Businesses & Financial Institutions