House Bill 1447, introduced in the North Dakota State Legislature on January 22, 2025, aims to regulate virtual currency kiosks operating within the state. The bill seeks to address growing concerns over consumer protection and compliance in the rapidly evolving landscape of digital currency transactions.

Key provisions of House Bill 1447 include the establishment of compliance responsibilities for virtual currency kiosk operators, mandating that these duties be fulfilled by full-time employees. The bill prohibits individuals who own more than 20% of a kiosk operator from serving as the designated compliance officer, ensuring a level of independence in oversight.

One of the most significant consumer protection measures in the bill is the requirement for kiosk operators to issue refunds to both new and existing customers who can demonstrate they were fraudulently induced into transactions. New customers are entitled to a full refund for all transactions made within the first 30 days, provided they report the fraudulent activity to both the operator and law enforcement within 90 days of the last transaction. Existing customers can also request refunds for transaction fees under similar conditions.

The bill also introduces a daily transaction limit, capping cash or virtual currency transactions at $1,000 per customer per day. Additionally, it sets a fee cap on transactions, limiting the total fees charged to customers to either $5 or 3% of the transaction amount, whichever is greater. This aims to protect consumers from excessive charges associated with virtual currency transactions.

Debate surrounding House Bill 1447 has highlighted concerns about the balance between consumer protection and the operational flexibility of virtual currency kiosks. Supporters argue that the bill is essential for safeguarding consumers in a largely unregulated market, while opponents express worries that stringent regulations could stifle innovation and growth in the virtual currency sector.

The implications of this legislation are significant, as it could set a precedent for how virtual currency transactions are regulated in other states. Experts suggest that if passed, House Bill 1447 may encourage more consumers to engage with virtual currency, knowing there are protections in place. However, it may also lead to increased operational costs for kiosk operators, potentially impacting their business models.

As the legislative process continues, stakeholders from both sides are closely monitoring developments, anticipating further discussions and possible amendments to the bill. The outcome of House Bill 1447 could reshape the landscape of virtual currency transactions in North Dakota and beyond.