Recently, the governor of Iowa signed into law SF 449, enacting new legislation to regulate digital financial asset transaction kiosk operators. The new law stipulates that such operators must not dispense more than $1,000 to a consumer per day, and that for new consumers, they must not accept or dispense more than $10,000 within the first 30 days of their initial transaction. The law also states that operator transaction fees cannot exceed the greater of $5 or 15 percent of the transaction value. Also, operators are required to provide written disclosures and receipts for transactions, with specific warnings against fraud.
The legislation mandates operators to implement antifraud policies and allows the state attorney general to enforce compliance, with penalties up to $10,000 per violation. Refunds must also be issued under certain conditions for both new and existing consumers who report fraudulent transactions. The act, deemed of immediate importance, takes effect upon enactment and will apply to operators starting July 1.
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