KY HB380

Establishes licensing requirements for virtual currency kiosk operators in Kentucky, requiring state approval for each kiosk location and a $100 application fee per location, with operators subject to the same regulatory framework as money transmitters

Imposes strict transaction limits of $500 per day and $10,000 per 30-day period per user, caps fees at 3% of transaction value, and mandates identity verification including government-issued ID before any transaction

Requires operators to provide fraud warnings at kiosks, display contact information for law enforcement and regulators, use blockchain analytics software to detect illicit activity, and block transactions to overseas exchanges inaccessible to U.S. users

Mandates refunds to fraud victims within 72 hours if they report within 90 days of the transaction or becoming aware of fraud and submit a police report, agency report, or sworn statement within 120 days of reporting

Authorizes civil penalties of $1,000-$5,000 per day for violations, allows the commissioner to order refunds and direct seizure or impounding of kiosks, and treats violations as unfair trade practices under consumer protection law with Attorney General enforcement authority