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Bill

Bill

A 10899

Relates to crypto kiosks

2025 Regular Session Introduced by Chris Burdick and 10 co-sponsors

Creates a regulatory framework requiring crypto kiosks and cashier exchanges in NY to register, disclose terms, cap fees, enforce holds and AML/KYC, and allow consumer remedies.

AMEND AND RECOMMIT TO RULES 10899C
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WeVote Research Nonpartisan
Bill Summary · A 10899

Overview

A10899 is a New York Assembly bill introduced in the 2025-2026 session that would create a new article (2-AAA) under the Banking Law to register and regulate crypto kiosks and cashier crypto exchanges operating in the state. The bill establishes definitions, registration requirements, disclosure obligations, transaction protections, AML/KYC measures, fraudRefund rules, hold periods, fee limits, and enforcement mechanisms. It aims to provide consumer protections, transparency, and regulatory oversight for crypto vending technologies and cashier-based crypto exchanges.

Main purpose and intent

  • Establish a comprehensive regulatory framework for crypto kiosks (self-serve electronic terminals) and cashier crypto exchanges (retail-based crypto transactions).
  • Protect consumers from fraud, misleading disclosures, and excessive or hidden fees.
  • Improve oversight of virtual currency transactions by requiring registration, disclosures, hold periods for large cash-in transactions, and anti-money-laundering controls.
  • Create enforcement remedies and private rights of action to recover funds and penalties for noncompliance.

Key provisions and changes

  • Article 2-AAA: Defines terms such as consumer, crypto kiosk, operator, cashier crypto exchange, funds, virtual currency, and related concepts.
  • Registration (76-b):
    • Operators must register with the NY Department of Financial Services (department) for an unlimited number of kiosks/exchanges.
    • Registration number and a toll-free contact number must be posted at each kiosk or exchange.
    • Non-registration triggers a department order to cease operations and civil penalties (up to $10,000 per kiosk/exchange plus per-transaction penalties).
  • Disclosures (76-c, 76-d):
    • Clear, conspicuous disclosures about terms, fees, and exchange rates; mandatory pre-transaction and post-transaction disclosures.
    • A prominent warning about potential scams must be displayed before completing a transaction.
    • Operators must provide owner contact information and reporting channels.
  • Transaction receipt (76-e):
    • Issuance of paper and electronic receipts detailing fees, exchange rates, transaction type/date/time, addresses/hashes when available, refund policy, and operator contact info.
  • Customer service (76-f):
    • Live customer service during operating hours (8 AM–10 PM local time); toll-free number visible at kiosks.
  • Hold periods (76-g):
    • For $1,000+ per 24 hours in funds, a 72-hour hold on transmissions.
    • Funds must be held in segregated statutory trusts for the consumer’s benefit during the hold period.
    • Aggregation of a consumer’s transactions across all kiosks within 24 hours for the threshold.
    • Hold-period cancellation rights with refunds within 7 business days; penalties for violations.
  • Fraud refunds (76-h):
    • In fraud-related cases, operators must refund the full amount (including fees) at the time of transaction if fraud is involved; refunds in originating currency; multilingual notices.
  • Cashier crypto transmission prohibition (76-i):
    • Prohibits transmitting virtual currency in cashier-crypto exchanges; these must be used only to exchange for dollars (cash or bank deposits).
  • Fees cap (76-j):
    • Transaction-related fees capped at 3% of the USD value of the transaction.
    • Civil penalties for exceeding the cap; private right of action for consumers; void contract provisions.
  • Fraud and AML (76-k) and Blockchain analytics (76-l):
    • Required anti-fraud/AML policies, KYC procedures, risk management, and ongoing evaluation.
    • Mandatory blockchain analytics; block transfers to known fraudulent or overseas wallets; dedicated regulatory contact line.
  • Transaction limits and protections (76-m):
    • Daily limit: $1,000 per user across all kiosks; 30-day limit of $10,000.
    • Limits apply to all products/services; no evasion via portals or OTC trades.
    • Data collected is confidential and may be disclosed only in aggregated form.
  • Ownership and penalties (76-n):
    • Reiterates private right of action for consumers to recover funds and fees; attorney’s fees and treble damages for violations; penalties tailored to the specific violation.

Who is affected

  • Crypto kiosk operators and cashier crypto exchanges operating in New York.
  • Consumers using crypto kiosks and cashier exchanges.
  • Law enforcement and state regulators (department) responsible for registration, oversight, and enforcement.

Procedural and timeline notes

  • Status: Referred to Banks (April 8, 2026).
  • Effective date: The act would take effect 180 days after becoming law.
  • The bill creates a new regulatory regime that would require operators to register and comply with ongoing disclosures, hold periods, AML/KYC, and consumer protections.

If you’d like, I can produce a one-page issue brief highlighting the potential consumer impact and regulatory implications for stakeholders.

Compiled from official sources — confirm details with the bill’s official record.

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