A bill filed Jan. 14, 2025, in the Massachusetts House of Representatives would impose statewide rules on virtual‑currency kiosks, require anti‑fraud measures and create a special commission to study blockchain technology.

The bill, House No. 1247 (House Docket No. 935), was presented by Representative Kate Lipper‑Garabedian (D‑Melrose) and Representative Thomas M. Stanley (D‑Waltham) and is titled “An Act relative to preventing fraud and establishing regulations on certain virtual currencies.” It would add a new Chapter 167K to the General Laws and amend other statutes to set standards for kiosk operators, consumer disclosures and oversight.

The legislation targets devices commonly known as virtual‑currency kiosks and virtual‑currency kiosk operators. It would prohibit operators from engaging in virtual‑currency business in the Commonwealth unless licensed as a money transmitter, require registration and prior approval from the Commissioner of Banks before activating kiosks and compel quarterly reporting of kiosk locations.

Key consumer protections and operator requirements in the bill include:
- Clear, conspicuous disclosures and an explicit warning: kiosks must display a prominent warning that virtual‑currency transactions are irreversible and may be used in scams; disclosures must explain that virtual currency is not legal tender and is not FDIC or similar protected.
- Transaction receipts: operators must provide a physical receipt showing the transaction type, value, precise time, transaction hash, virtual‑currency address(es), sender and recipient contact information, fees, exchange rate and the operator’s refund policy.
- Transaction limits: a daily per‑customer limit of $1,000 in cash or the U.S.‑dollar equivalent for virtual‑currency kiosk transactions.
- Fee cap: aggregate fees on a single transaction or related transactions would be limited to the greater of $5.00 or 3 percent of the U.S.‑dollar equivalent of the virtual currency involved.
- Blockchain analytics and fraud prevention: operators must use blockchain analytics software to help prevent transfers to wallets known to be affiliated with fraud at the time of a transaction; the Commissioner of Banks may request proof of such use.
- Anti‑fraud program and compliance officer: operators must maintain a written anti‑fraud policy and employ a full‑time compliance officer who is qualified to coordinate compliance with state and federal law; the compliance officer may not own more than 20 percent of the operator.
- Refund policies: the bill requires full refunds for new customers (defined as those within 30 days of their first kiosk transaction) if they were fraudulently induced and report the fraud to the operator and a government or law enforcement agency within 90 days of the last transaction during the 30‑day new‑customer period. Existing customers who were fraudulently induced may receive refunds of transaction fees if they report within 90 days.
- Customer service: operators must provide live customer service at minimum Monday–Friday between 8 a.m. and 10 p.m. Eastern and display a toll‑free number on the kiosk or kiosk screens.

The bill also directs the state treasurer’s office to develop and periodically update a digital education module and resources on virtual currencies and digital assets, with curricula specifically tailored for older adults focused on fraud prevention.

In addition, House No. 1247 would establish a 25‑member special commission to examine blockchain technology’s feasibility, risks (including privacy risks), potential government and business uses, tax issues, energy consumption concerns, consumer protections, potential licensure requirements and which state agencies should provide oversight. The commission’s membership would include legislative leaders or designees, agency heads and public appointees; it is required to report findings and draft legislation within one year after all appointments are made.

House No. 1247 was filed with supporting petitioners listed on the docket; no legislative action, vote tally or final disposition is recorded in the filing. The bill states it would take effect upon passage.

Action recorded in the bill filing: introduction of House No. 1247 (House Docket No. 935) titled “An Act relative to preventing fraud and establishing regulations on certain virtual currencies.” Presenters listed: Representative Kate Lipper‑Garabedian and Representative Thomas M. Stanley. Further legislative consideration and any votes or amendments were not specified in the filing.