House commerce committee signals one-year moratorium extension while debating strict rules for crypto kiosks

The Vermont House Committee on Commerce and Economic Development on Feb. 28 reviewed draft language for H.137 that would impose detailed consumer‑protection, recordkeeping and compliance requirements on virtual currency kiosk operators and indicated by straw poll that it will extend the current kiosk moratorium for one year while staff and stakeholders continue negotiations.

Committee staff and the Department of Financial Regulation (DFR) discussed proposed requirements in draft 1.5 of the bill, which would require kiosk operators to provide pre‑transaction disclosures and acknowledgements, both electronic and (as drafted) paper receipts showing digital wallet addresses and transaction identifiers, a prominently displayed toll‑free customer support number, mandatory live telephone screenings for certain customers, the use of blockchain analytics for risk scoring, anti‑fraud and enhanced‑due‑diligence policies, and a refund regime for fraudulent transactions affecting “new customers.” The draft also revisits the statutory fee cap and the daily transaction limit for kiosk transactions.

Why it matters: DFR and outside witnesses told the committee that kiosks have been linked to a substantial share of reported crypto fraud complaints and that rigorous protections or continued restrictions are needed to reduce harm. Industry witnesses said they are willing to adopt many protections but urged changes to limit business costs and preserve access for cash users.

The draft’s key provisions

- Pre‑transaction disclosures: Operators would be required to obtain a customer’s acknowledgement of specified items before completing a virtual‑currency sale at a kiosk, including the transaction amount, fees, any difference from market price, the operator’s refund policy,…