On June 23, the governor of Rhode Island signed into law HB 5121 which grants Rhode Island new currency transmission laws to regulate and establish new licensing, disclosure and anti-fraud requirements for virtual currency kiosk operators. The act requires a virtual currency kiosk operator not to engage in virtual currency business activity with someone unless licensed in the state as a money transmitter. The law mandates that operators must clearly disclose all relevant terms and conditions in a language chosen by the customer and must use blockchain analytics software to prevent transactions involving wallets known to be associated with fraudulent activity. The act sets daily transaction limits of $2,000 for new customers and $5,000 for existing customers, regardless of the number of kiosks used, and requires operators to provide live customer service during specified hours. All provisions, except those related to transaction receipts — which take effect November 1 — are effective immediately.
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