On July 7, North Carolina enacted the Virtual Currency Kiosk Consumer Protection Act, which adds Article 26 to Chapter 53 of the state’s General Statutes. The law brings virtual currency kiosk operators under the Commissioner of Banks’ supervision by authorizing the commissioner to request compliance evidence and records and by deeming operators that own, operate, solicit, market, advertise or facilitate virtual currency kiosks in the state to be engaged in money transmission and subject to licensure under Article 16B of Chapter 53. Among other requirements, operators must: (i) disclose material risks associated with their products and provide all relevant terms and conditions associated with their products, including scam-warning and transaction-specific disclosures; (ii) implement an interactive fraud-screen process; (iii) provide receipts; (iv) use blockchain analytics to help prevent transfers to wallets known to be affiliated with fraudulent activity; (v) maintain live customer service whenever kiosks are available for public use; (vi) designate full-time compliance and consumer protection officers; (vii) adopt anti-fraud and compliance policies; and (viii) submit quarterly reports identifying kiosk locations in the state.

The law also bars QR code, barcode and similar scan-based login methods and requires kiosks to disable or physically block scanning components unless needed for approved identity-verification purposes. It imposes daily transaction limits of $2,000 for new virtual currency customers and $5,000 for existing virtual currency customers, caps aggregate fees and charges, including the spread, at 12 percent of the dollar equivalent of the virtual currency involved, requires a 48-hour hold on transactions initiated by customers whose first transaction occurred within the seven days prior, and provides refund rights for certain reported fraudulent transactions. The law treats violations as unfair trade practices and authorizes civil penalties of up to $1,000 for a first offense and $5,000 for subsequent offenses. It also preserves city and county authority to regulate or prohibit kiosks through zoning if local ordinances do not conflict with the law. The law generally takes effect January 1, 2027, and applies to offenses committed on or after that date.