First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0363.01 Clare Haffner x6137
SENATE BILL 25-079
Senate Committees House Committees
Judiciary
A BILL FOR AN ACT
C
ONCERNING THE "COLORADO VENDING OF DIGITAL ASSETS ACT".101
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill enacts the "Colorado Vending of Digital Assets Act",
which requires an owner or operator of a virtual currency kiosk to:
! Provide certain disclosures to customers of the virtual
currency kiosk;
! Provide each customer with a printed and an electronic
receipt detailing the customer's virtual currency transaction;
and
! Fully refund a customer's first virtual currency transaction
SENATE SPONSORSHIP
Rich and Roberts,
HOUSE SPONSORSHIP
Taggart,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. if the virtual currency transaction is to a virtual currency
wallet or exchange located outside of the United States and
is determined by law enforcement to be fraudulent.
The bill establishes a daily transaction limit of $1,000 for a
customer of a virtual currency kiosk.
The bill defines "virtual currency" as a type of digital unit that is
used as a medium of exchange or a form of digitally stored value or that
is incorporated into payment system technology. "Virtual currency kiosk"
is defined as an electronic terminal acting as a mechanical agent of the
owner or operator to enable the owner or operator to facilitate the
exchange of virtual currency for other virtual currency or fiat currency.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add article 112 to2
title 11 as follows:3
ARTICLE 1124
Colorado Vending of Digital Assets5
11-112-101. Short title. T
HE SHORT TITLE OF THIS ARTICLE 112 IS6
THE "COLORADO VENDING OF DIGITAL ASSETS ACT".7
11-112-102. Definitions. A
S USED IN THIS ARTICLE 112, UNLESS8
THE CONTEXT OTHERWISE REQUIRES :9
(1) "B
LOCKCHAIN TECHNOLOGY " HAS THE MEANING SET FORTH IN10
SECTION 24-36-121.5 (2)(a).11
(2) "T
RANSACTION HASH" MEANS A UNIQUE IDENTIFIER MADE UP12
OF A STRING OF CHARACTERS THAT ACTS AS A RECORD AND PROVIDES13
PROOF THAT A TRANSACTION WAS VERIFIED AND ADDED TO BLOCKCHAIN14
TECHNOLOGY.15
(3) (a) "V
IRTUAL CURRENCY" MEANS A TYPE OF DIGITAL UNIT16
THAT IS USED AS A MEDIUM OF EXCHANGE OR A FORM OF DIGITALLY17
STORED VALUE OR THAT IS INCORPORATED INTO PAYMENT SYSTEM18
TECHNOLOGY.19
SB25-079-2- (b) "VIRTUAL CURRENCY" INCLUDES DIGITAL UNITS THAT:1
(I) H
AVE A CENTRALIZED REPOSITORY OR ADMINISTRATOR ;2
(II) A
RE DECENTRALIZED AND HAVE NO CENTRALIZED REPOSITORY3
OR ADMINISTRATOR; OR4
(III) M
AY BE CREATED OR OBTAINED BY COMPUTING OR5
MANUFACTURING EFFORT .6
(c) "V
IRTUAL CURRENCY" DOES NOT INCLUDE DIGITAL UNITS THAT:7
(I) A
RE USED SOLELY WITHIN ONLINE GAMING PLATFORMS , WITH8
NO MARKET OR APPLICATION OUTSIDE THE GAMING PLATFORMS ; OR9
(II) A
RE USED EXCLUSIVELY AS PART OF A CONSUMER AFFINITY OR10
REWARDS PROGRAM AND CAN BE APPLIED AS PAYMENT FOR PURCHASES11
WITH THE ISSUER OR OTHER DESIGNATED MERCHANTS BUT CANNOT BE12
CONVERTED INTO OR REDEEMED FOR FIAT CURRENCY .13
(4) "V
IRTUAL CURRENCY ADDRESS " MEANS AN ALPHANUMERIC14
IDENTIFIER REPRESENTING A DESTINATION FOR A VIRTUAL CURRENCY15
TRANSFER THAT IS ASSOCIATED WITH A VIRTUAL CURRENCY WALLET .16
(5) "V
IRTUAL CURRENCY KIOSK " MEANS AN ELECTRONIC17
TERMINAL ACTING AS A MECHANICAL AGENT OF THE OWNER OR OPERATOR18
TO ENABLE THE OWNER OR OPERATOR TO FACILITATE THE EXCHANGE OF19
VIRTUAL CURRENCY FOR OTHER VIRTUAL CURRENCY OR FIAT CURRENCY ,20
INCLUDING BY:21
(a) C
ONNECTING TO A SEPARATE VIRTUAL CURRENCY EXCHANGER22
THAT PERFORMS THE ACTUAL VIRTUAL CURRENCY TRANSMISSION ; OR23
(b) D
RAWING UPON THE VIRTUAL CURRENCY IN THE POSSESSION24
OF THE OWNER OR OPERATOR OF THE ELECTRONIC TERMINAL .25
(6) "V
IRTUAL CURRENCY WALLET " MEANS A SOFTWARE26
APPLICATION OR OTHER MECHANISM PROVIDING A MEANS FOR HOLDING ,27
SB25-079
-3- STORING, AND TRANSFERRING VIRTUAL CURRENCY .1
11-112-103. Virtual currency kiosks - disclosures - receipts -2
daily limit - cancellation and refund. (1) B
EFORE ENTERING INTO A3
VIRTUAL CURRENCY TRANSACTION FOR , ON BEHALF OF, OR WITH A4
CUSTOMER, THE OWNER OR OPERATOR OF A VIRTUAL CURRENCY KIOSK5
SHALL DISCLOSE TO THE CUSTOMER IN CLEAR AND CONSPICUOUS WRITING6
IN THE ENGLISH LANGUAGE ALL MATERIAL RISKS ASSOCIATED WITH7
VIRTUAL CURRENCY. THE DISCLOSURES MUST BE DISPLAYED ON THE8
SCREEN OF THE VIRTUAL CURRENCY KIOSK WITH THE ABILITY FOR A9
CUSTOMER TO ACKNOWLEDGE RECEIPT OF THE DISCLOSURES . THE10
DISCLOSURES MUST INCLUDE AT LEAST THE FOLLOWING INFORMATION :11
(a) A
DISCLOSURE PROVIDED SEPARATELY FROM THE DISCLOSURES12
PROVIDED PURSUANT TO SUBSECTIONS (1)(b) TO (1)(i) OF THIS SECTION13
AND FEATURED PROMINENTLY AND IN BOLD -FACED TYPE STATING THE14
FOLLOWING: "WARNING: LOSSES DUE TO FRAUDULENT OR15
ACCIDENTAL
TRANSACTIONS MAY NOT BE RECOVERABLE16
AND
TRANSACTIONS IN VIRTUAL CURRENCY ARE17
IRREVERSIBLE.";18
(b) V
IRTUAL CURRENCY IS NOT BACKED OR INSURED BY THE19
GOVERNMENT, AND ACCOUNTS AND VALUE BALANCES ARE NOT SUBJECT20
TO FEDERAL DEPOSIT INSURANCE CORPORATION , NATIONAL CREDIT UNION21
ADMINISTRATION, OR SECURITIES INVESTOR PROTECTION CORPORATION22
PROTECTIONS;23
(c) F
OR SOME VIRTUAL CURRENCY TRANSACTIONS , THE24
TRANSACTION WILL BE DEEMED RECORDED WHEN RECORDED ON A PUBLIC25
LEDGER, WHICH MAY NOT BE THE DATE OR TIME WHEN THE CUSTOMER26
INITIATES THE VIRTUAL CURRENCY TRANSACTION ;27
SB25-079
-4- (d) THE VALUE OF VIRTUAL CURRENCY MAY BE DERIVED FROM THE1
CONTINUED WILLINGNESS OF MARKET PARTICIPANTS TO EXCHANGE FIAT2
CURRENCY FOR VIRTUAL CURRENCY , WHICH MAY RESULT IN THE3
PERMANENT AND TOTAL LOSS OF THE VALUE OF A PARTICULAR VIRTUAL4
CURRENCY IF THE MARKET FOR THAT VIRTUAL CURRENCY DISAPPEARS ;5
(e) T
HERE IS NO ASSURANCE THAT A PERSON THAT ACCEPTS6
VIRTUAL CURRENCY AS PAYMENT TODAY WILL CONTINUE TO DO SO IN THE7
FUTURE;8
(f) T
HE VOLATILITY AND UNPREDICTABILITY OF THE VALUE OF9
VIRTUAL CURRENCY RELATIVE TO FIAT CURRENCY MAY RESULT IN A10
SIGNIFICANT LOSS OVER A SHORT PERIOD OF TIME;11
(g) T
HE NATURE OF VIRTUAL CURRENCY MAY LEAD TO AN12
INCREASED RISK OF FRAUD OR CYBERATTACK ;13
(h) T
HE NATURE OF VIRTUAL CURRENCY MEANS THAT14
TECHNOLOGICAL DIFFICULTIES EXPERIENCED BY THE OWNER OR OPERATOR15
MAY PREVENT ACCESS TO OR USE OF A CUSTOMER 'S VIRTUAL CURRENCY;16
AND17
(i) A
NY BOND MAINTAINED BY THE OWNER OR OPERATOR FOR THE18
BENEFIT OF THE CUSTOMERS OF THE OWNER OR OPERATOR MAY NOT BE19
SUFFICIENT TO COVER ALL LOSSES INCURRED BY CUSTOMERS .20
(2) W
HEN OPENING AN ACCOUNT FOR A CUSTOMER , THE OWNER OR21
OPERATOR OF A VIRTUAL CURRENCY KIOSK SHALL DISCLOSE TO THE22
CUSTOMER IN CLEAR AND CONSPICUOUS WRITING IN THE ENGLISH23
LANGUAGE ALL RELEVANT TERMS AND CONDITIONS ASSOCIATED WITH THE24
PRODUCTS, SERVICES, AND ACTIVITIES OF THE OWNER OR OPERATOR AND25
VIRTUAL CURRENCY GENERALLY , INCLUDING THE FOLLOWING:26
(a) T
HE CUSTOMER'S LIABILITY FOR UNAUTHORIZED VIRTUAL27
SB25-079
-5- CURRENCY TRANSACTIONS ;1
(b) T
HE CUSTOMER'S RIGHT TO STOP PAYMENT OF A2
PREAUTHORIZED VIRTUAL CURRENCY TRANSFER AND THE PROCEDURE3
USED TO INITIATE A STOP-PAYMENT ORDER;4
(c) U
NDER WHICH CIRCUMSTANCES THE OWNER OR OPERATOR5
WILL, ABSENT A COURT OR GOVERNMENT ORDER , DISCLOSE INFORMATION6
CONCERNING THE CUSTOMER 'S ACCOUNT TO THIRD PARTIES;7
(d) T
HE CUSTOMER'S RIGHT TO RECEIVE PERIODIC ACCOUNT8
STATEMENTS AND VALUATIONS FROM THE OWNER OR OPERATOR ;9
(e) T
HE CUSTOMER'S RIGHT TO RECEIVE A RECEIPT, A TRADE10
TICKET, OR OTHER EVIDENCE OF A VIRTUAL CURRENCY TRANSACTION ; AND11
(f) T
HE CUSTOMER'S RIGHT TO PRIOR NOTICE OF A CHANGE IN THE12
RULES OR POLICIES OF THE OWNER OR OPERATOR .13
(3) P
RIOR TO A TRANSACTION IN VIRTUAL CURRENCY FOR , ON14
BEHALF OF, OR WITH A CUSTOMER , THE OWNER OR OPERATOR OF A15
VIRTUAL CURRENCY KIOSK SHALL DISCLOSE TO THE CUSTOMER IN CLEAR16
AND CONSPICUOUS WRITING IN THE ENGLISH LANGUAGE THE TERMS AND17
CONDITIONS OF THE VIRTUAL CURRENCY TRANSACTION , INCLUDING THE18
FOLLOWING:19
(a) T
HE AMOUNT OF THE TRANSACTION ;20
(b) T
HE FEES, EXPENSES, AND CHARGES BORNE BY THE CUSTOMER ,21
INCLUDING APPLICABLE EXCHANGE RATES ;22
(c) T
HE TYPE AND NATURE OF THE TRANSACTION ;23
(d) A
WARNING THAT, ONCE COMPLETED, THE TRANSACTION IS24
IRREVERSIBLE, IF APPLICABLE;25
(e) T
HE DIFFERENCE IN THE VIRTUAL CURRENCY 'S SALE PRICE26
VERSUS THE CURRENT MARKET PRICE ; AND27
SB25-079
-6- (f) OTHER DISCLOSURES THAT ARE CUSTOMARILY GIVEN IN1
CONNECTION WITH A VIRTUAL CURRENCY TRANSACTION .2
(4) T
HE OWNER OR OPERATOR OF A VIRTUAL CURRENCY KIOSK3
SHALL ENSURE THAT EACH CUSTOMER ACKNOWLEDGES RECEIPT OF ALL4
DISCLOSURES REQUIRED UNDER THIS SECTION .5
(5) U
PON THE COMPLETION OF A VIRTUAL CURRENCY6
TRANSACTION, THE OWNER OR OPERATOR OF A VIRTUAL CURRENCY KIOSK7
SHALL PROVIDE TO THE CUSTOMER A PRINTED AND AN ELECTRONIC8
RECEIPT CONTAINING THE FOLLOWING INFORMATION :9
(a) T
HE NAME OF AND CONTACT INFORMATION FOR THE OWNER OR10
OPERATOR, INCLUDING A TELEPHONE NUMBER ESTABLISHED BY THE11
OWNER OR OPERATOR TO ANSWER QUESTIONS AND REGISTER COMPLAINTS ;12
(b) T
HE TYPE, VALUE, DATE, AND PRECISE TIME OF THE VIRTUAL13
CURRENCY TRANSACTION , THE TRANSACTION HASH, AND EACH VIRTUAL14
CURRENCY ADDRESS;15
(c) T
HE FEE CHARGED;16
(d) T
HE EXCHANGE RATE, IF APPLICABLE;17
(e) A
STATEMENT OF THE LIABILITY OF THE OWNER OR OPERATOR18
FOR NONDELIVERY OR DELAYED DELIVERY OF THE CURRENCY FOR WHICH19
THE CUSTOMER EXCHANGED VIRTUAL CURRENCY ; AND20
(f) A
STATEMENT OF THE REFUND POLICY OF THE OWNER OR21
OPERATOR.22
(6) T
HE MAXIMUM DAILY TRANSACTION LIMIT OF A VIRTUAL23
CURRENCY KIOSK IS ONE THOUSAND DOLLARS PER CUSTOMER .24
(7) (a) T
HE OWNER OR OPERATOR OF A VIRTUAL CURRENCY KIOSK25
SHALL, AT THE EXPENSE OF THE OWNER OR OPERATOR , ALLOW A26
CUSTOMER TO CANCEL AND RECEIVE A FULL REFUND FOR A VIRTUAL27
SB25-079
-7- CURRENCY TRANSACTION IF:1
(I) T
HE VIRTUAL CURRENCY TRANSACTION WAS THE CUSTOMER 'S2
FIRST VIRTUAL CURRENCY TRANSACTION ;3
(II) T
HE VIRTUAL CURRENCY TRANSACTION WAS TO A VIRTUAL4
CURRENCY WALLET OR EXCHANGE LOCATED OUTSIDE OF THE UNITED5
S
TATES; AND6
(III) L
AW ENFORCEMENT DETERMINES THAT THE VIRTUAL7
CURRENCY TRANSACTION WAS FRAUDULENT .8
(b) I
F THE CONDITIONS OF SUBSECTION (7)(a) OF THIS SECTION ARE9
MET, THE OWNER OR OPERATOR SHALL ISSUE A FULL REFUND WITHIN10
SEVENTY-TWO HOURS AFTER BEING NOTIFIED THAT THE VIRTUAL11
CURRENCY TRANSACTION WAS FRAUDULENT .12
SECTION 2. Act subject to petition - effective date. This act13
takes effect January 1, 2026; except that, if a referendum petition is filed14
pursuant to section 1 (3) of article V of the state constitution against this15
act or an item, section, or part of this act within the ninety-day period16
after final adjournment of the general assembly, then the act, item,17
section, or part will not take effect unless approved by the people at the18
general election to be held in November 2026 and, in such case, will take19
effect on the date of the official declaration of the vote thereon by the20
governor.21
SB25-079
-8-