DIFI; cryptocurrency kiosk operator; license

HB 2232 requires cryptocurrency kiosk operators in Arizona to obtain a state license by January 1, 2027, with strict requirements including criminal background checks, financial audits, and verification of ownership. Operators must implement mandatory identity checks (government ID, facial capture, two-factor authentication), display scam warnings in English and Spanish, and record all transactions via video, audio, and GPS logs. The bill prohibits anonymous transactions, limits daily customer transactions to $2,000, and mandates reporting of suspicious activity within 15 minutes. Violations can trigger civil fines up to $100,000 per incident or felony charges for serious breaches like failing to report fraud, with penalties funding a new Digital Asset Oversight Fund.