S.Amdt. 4736

This amendment, submitted by Mr. Durbin, aims to add Crypto ATM Fraud Prevention measures to the bill. Its primary purpose is to protect consumers from fraud associated with virtual currency kiosks.

To achieve this, the amendment proposes the following changes and additions:

• Registration and Oversight: It requires virtual currency kiosk operators to register with the Secretary of the Treasury and provide updated lists of all their kiosk locations every 90 days.

• Customer Disclosures: Operators must clearly disclose terms and conditions, warn customers about common fraudulent schemes (such as impersonating government officials), and explain that virtual currency is not backed by the U.S. Government or insured by the FDIC.

• Operational Safeguards:

  • Operators must use blockchain analytics to stop transactions to wallets linked to fraud.
  • New customers making transactions of $300 or more must provide verbal confirmation via a live call.
  • A 48-hour transaction freeze is required for new customers.
  • Transaction limits are set (e.g., $1,000 per 24 hours for new customers).

• Accountability and Refunds:

  • Kiosk operators must employ a full-time compliance officer and maintain a written anti-fraud policy submitted to FinCEN.
  • A refund process is established for victims of fraud, with "enhanced damages" (3 times the refund or $10,000) for operators who knowingly deny valid refunds.
  • Physical receipts must be provided to customers.

• Enforcement: The amendment establishes civil monetary penalties of $10,000 for each violation of these requirements.