2023 Louisiana Laws › Revised Statutes › Title 6 - Banks and Banking › §6:1393.1. Required disclosures

RS 6:1393.1 - Required disclosures
A. Any licensee engaging in virtual currency business activity as defined in R.S. 6:1382 in this state shall provide accurate and appropriate disclosures to residents as it relates to the exchanging, transferring, or storing of virtual currency through the licensee. Failure to provide the disclosures required by this Section shall be a violation of this Chapter.
B. Disclosures shall be made separately from any other information provided by the licensee to a resident and shall be clear, conspicuous, and in legible writing in the English language.
C. Without limitation, the commissioner may require additional disclosures by rule or regulation as considered necessary and appropriate.
D. The disclosures shall describe all material risks associated with the licensee's virtual currency products, services, and activities and virtual currency generally, including but not limited to the following:
(1) Virtual currency is not legal tender in the United States, is not backed by the United States government, and accounts and value balances are not subject to Federal Deposit Insurance Corporation or Securities Investor Protection Corporation protections.
(2) Legislative and regulatory changes or actions at the state, federal, or international level may adversely affect the value of virtual currency.
(3) Transaction in virtual currency may be irreversible, and accordingly, losses due to fraudulent or accidental transactions may not be recoverable.
(4) Some virtual currency transactions may be immediately effective when recorded on a public ledger, which is not necessarily the date or time that the resident initiates the transaction.
(5) The value of virtual currency may be derived from the continued willingness of market participants to exchange legal tender for virtual currency, which may result in the potential for permanent and total loss of value of a particular virtual currency if the market for the virtual currency declines or collapses for an extended period of time.
(6) Any surety bond required by this Chapter for the benefit of residents may not be sufficient to cover all losses incurred by the residents.
(7) The residents should perform research before purchasing or investing in virtual currency.
(8) The circumstances under which the licensee will, in the ordinary course of business, disclose the resident's financial and account information to third parties.
E. When opening a new account, and prior to entering into an initial transaction with, for, or on behalf of a resident, each licensee shall disclose in clear, conspicuous, and legible writing in the English language all relevant terms and conditions associated with its virtual currency products, services, and activities and virtual currency generally, including but not limited to the following:
(1) The resident's liability for unauthorized virtual currency transactions.
(2) The resident's right to stop payment of a preauthorized virtual currency transfer and the procedure to initiate the stop-payment order.
(3) Under what circumstances the licensee will, absent a court or government order, disclose information concerning the resident's account to third parties.
(4) The resident's right to receive periodic account statements and valuations from the licensee.
(5) The resident's right to receive a receipt, trade ticket, or other evidence of a transaction.
(6) Any other disclosures as are customarily given in connection with the opening of resident accounts.
F. Prior to each transaction in virtual currency with, for, or on behalf of a resident, each licensee shall furnish to each such customer or account holder a written disclosure in clear, conspicuous, and legible writing in the English language containing the terms and conditions of the transaction, including but not limited to the following:
(1) The amount of the transaction.
(2) Any fees, expenses, and charges borne by the resident, including applicable exchange rates.
(3) The type of the virtual currency transaction.
(4) A notice that once executed, the transaction is not reversible.
G. Each licensee shall ensure that all disclosures required in this Section are acknowledged as received by the resident.
H. Upon completion of any transaction, each licensee shall provide to the resident a receipt containing all of the following information:
(1) The name and contact information of the licensee, to answer questions and register complaints.
(2) The type, value, date, and precise time of the transaction.
(3) The fee charged.
(4) The exchange rate, if applicable.
(5) A statement of the liability of the licensee for nondelivery or delayed delivery.
(6) A statement of the refund policy of the licensee.
(7) Any additional information the commissioner may require by rule.
I. Each licensee shall make available to the office, upon request, the form of the receipts it is required to provide to a resident in accordance with Subsection H of this Section.
Acts 2023, No. 331, §1, eff. June 13, 2023.
NOTE: The provisions of Acts 2023, No. 331, will terminate on July 1, 2025.