AZ HB2232

Requires cryptocurrency kiosk operators to obtain a license from the Arizona Department of Insurance and Financial Institutions by January 1, 2027, with annual renewal and background checks including fingerprints and 15-year financial/regulatory history review.

Prohibits transactions without identity verification including government ID scanning, live facial capture matching, two-factor authentication, and address verification; transactions over $300 require purpose certification and fraud-screening questionnaire.

Limits cryptocurrency kiosk transactions to $2,000 per customer within 24 hours and mandates suspicious transaction freezes for at least 72 hours, with suspected fraud reported to authorities within 15 minutes.

Requires continuous video and audio recording, GPS logging, and facial capture logs at all kiosks with 7-year record retention, plus conspicuous fraud warnings displayed in English and Spanish before each transaction.

Establishes civil penalties up to $50,000 per violation and criminal penalties ranging from class 4 to class 2 felonies for violations, with $4,000,000 appropriated from the general fund for implementation.