South Dakota Enacts Virtual Currency Kiosk Consumer Protection Law, USA, March 2026

On March 11, 2026, South Dakota Governor Kristi Noem signed Senate Bill 98 into law, establishing the first dedicated consumer protection statute in the state specifically addressing virtual currency kiosk transactions. The Act amends South Dakota Codified Laws to impose disclosure, registration, and anti-fraud requirements on virtual currency kiosk operators doing business with South Dakota consumers. The law takes effect on July 1, 2026.

SB 98 defines "virtual currency kiosk" as an electronic terminal that facilitates the exchange of fiat currency for virtual currency or vice versa. The Act requires kiosk operators to register with the South Dakota Division of Banking prior to operating in the state. Operators must post conspicuous disclosures at each kiosk location stating transaction fees, exchange rates, and a warning that virtual currency transactions may be irreversible. The Act further prohibits operators from processing transactions for persons whom the operator knows or has reason to know are acting under fraud or duress, and mandates that operators maintain a customer complaint mechanism with a five business day response requirement.

Market participants operating virtual currency kiosks in South Dakota must complete Division of Banking registration and install compliant disclosure notices at all kiosk locations before July 1, 2026. Failure to register constitutes a class 1 misdemeanor under South Dakota law. Operators must retain transaction records for a minimum of five years and produce them upon request from the Division of Banking or law enforcement. Out-of-state operators serving South Dakota customers through remotely accessible kiosks are subject to the same registration and disclosure requirements.

The Act does not impose a transaction fee cap or limit the number of kiosks per operator. It does not address the legal classification of virtual currency as a security or commodity, leaving federal law to govern those questions. The law applies to all kiosk formats regardless of the specific virtual currency or currencies offered. No grandfather period is provided for currently operating kiosks; all operators must be in full compliance by the effective date.

Prokopiev Law Group advises virtual currency kiosk operators, digital asset companies, and financial technology businesses on state money transmission licensing, virtual asset registration, and consumer protection compliance. The firm maintains a dedicated partner network for multi-state kiosk deployment, Division of Banking registration, state regulatory filings, and kiosk disclosure program implementation — areas encompassing virtual currency licensing, consumer protection law, anti-fraud compliance, and state regulatory strategy.

Source: South Dakota Senate Bill 98 (2026 Legislative Session), "An Act to prevent virtual currency kiosk fraud and to provide consumer protections for virtual currency kiosk transactions." South Dakota Legislature, 2026 Session. Official URL: https://sdlegislature.gov/Session/Bills/71. Confirmed April 2, 2026.

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