Colorado 2025 Regular Session

Colorado Senate Bill SB079 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		First Regular Session
2	2		Seventy-fifth General Assembly
3	3		STATE OF COLORADO
4		-	~~REVISED~~
	4	+	ENGROSSED
5	5		This Version Includes All Amendments Adopted
6		-	on Second Reading in the ~~Second House~~
	6	+	on Second Reading in the House of Introduction
7	7		LLS NO. 25-0363.01 Clare Haffner x6137
8	8		SENATE BILL 25-079
9	9		Senate Committees House Committees
10		-	Judiciary ~~Finance~~
	10	+	Judiciary
11	11		A BILL FOR AN ACT
12	12		C
13	13		ONCERNING THE "COLORADO VENDING OF DIGITAL ASSETS ACT".101
14	14		Bill Summary
15	15		(Note: This summary applies to this bill as introduced and does
16	16		not reflect any amendments that may be subsequently adopted. If this bill
17	17		passes third reading in the house of introduction, a bill summary that
18	18		applies to the reengrossed version of this bill will be available at
19	19		http://leg.colorado.gov
20	20		.)
21	21		The bill enacts the "Colorado Vending of Digital Assets Act",
22	22		which requires an owner or operator of a virtual currency kiosk to:
23	23		! Provide certain disclosures to customers of the virtual
24	24		currency kiosk;
25	25		! Provide each customer with a printed and an electronic
26	26		receipt detailing the customer's virtual currency transaction;
27	27		and
28	28		! Fully refund a customer's first virtual currency transaction
29		-	HOUSE
30		-	Amended 2nd Reading
31		-	April 23, 2025
32		-	SENATE
33		-	3rd Reading Unamended
34		-	February 28, 2025
35	29		SENATE
36	30		Amended 2nd Reading
37	31		February 27, 2025
38	32		SENATE SPONSORSHIP
39		-	Rich and Roberts, ~~Kipp~~
	33	+	Rich and Roberts,
40	34		HOUSE SPONSORSHIP
41	35		Taggart and Jackson,
42	36		Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
43	37		Capital letters or bold & italic numbers indicate new material to be added to existing law.
44	38		Dashes through the words or numbers indicate deletions from existing law. if the virtual currency transaction is to a virtual currency
45	39		wallet or exchange located outside of the United States and
46	40		is determined by law enforcement to be fraudulent.
47	41		The bill establishes a daily transaction limit of $1,000 for a
48	42		customer of a virtual currency kiosk.
49	43		The bill defines "virtual currency" as a type of digital unit that is
50	44		used as a medium of exchange or a form of digitally stored value or that
51	45		is incorporated into payment system technology. "Virtual currency kiosk"
52	46		is defined as an electronic terminal acting as a mechanical agent of the
53	47		owner or operator to enable the owner or operator to facilitate the
54	48		exchange of virtual currency for other virtual currency or fiat currency.
55	49		Be it enacted by the General Assembly of the State of Colorado:1
56	50		SECTION 1. In Colorado Revised Statutes, add article 112 to2
57	51		title 11 as follows:3
58	52		ARTICLE 1124
59	53		Colorado Vending of Digital Assets5
60	54		11-112-101. Short title. T
61	55		HE SHORT TITLE OF THIS ARTICLE 112 IS6
62	56		THE "COLORADO VENDING OF DIGITAL ASSETS ACT".7
63	57		11-112-102. Definitions. A
64	58		S USED IN THIS ARTICLE 112, UNLESS8
65	59		THE CONTEXT OTHERWISE REQUIRES :9
66	60		(1) "B
67	61		LOCKCHAIN TECHNOLOGY " HAS THE MEANING SET FORTH IN10
68	62		SECTION 24-36-121.5 (2)(a).11
69	63		(2) (a) "N
70	64		EW CUSTOMER" MEANS A CUSTOMER TRANSACTING AT
71	65		12
72	66		A VIRTUAL CURRENCY KIOSK IN COLORADO WHO HAS BEEN A CUSTOMER13
73	67		OF AN OWNER OR OPERATOR OF A VIRTUAL CURRENCY KIOSK FOR LESS14
74	68		THAN SEVEN DAYS.15
75	69		(b) S
76	70		EVEN DAYS AFTER A CUSTOMER FIRST TRANSACTS WITH AN
77	71		16
78	72		OWNER OR OPERATOR OF A VIRTUAL CURRENCY KIOSK , THE CUSTOMER IS17
79	73		CONSIDERED AN EXISTING CUSTOMER AND IS NOT SUBJECT TO THE NEW18
80	74		CUSTOMER TRANSACTION LIMIT DESCRIBED IN SECTION 11-112-103 (6).19
81	75		079-2- (3) "TRANSACTION HASH" MEANS A UNIQUE IDENTIFIER MADE UP1
82	76		OF A STRING OF CHARACTERS THAT ACTS AS A RECORD AND PROVIDES2
83	77		PROOF THAT A TRANSACTION WAS VERIFIED AND ADDED TO BLOCKCHAIN3
84	78		TECHNOLOGY.4
85	79		(4) (a) "VIRTUAL CURRENCY" MEANS A TYPE OF DIGITAL UNIT5
86	80		THAT IS USED AS A MEDIUM OF EXCHANGE OR A FORM OF DIGITALLY6
87	81		STORED VALUE OR THAT IS INCORPORATED INTO PAYMENT SYSTEM7
88	82		TECHNOLOGY.8
89	83		(b) "V
90	84		IRTUAL CURRENCY" INCLUDES DIGITAL UNITS THAT:9
91	85		(I) H
92	86		AVE A CENTRALIZED REPOSITORY OR ADMINISTRATOR ;10
93	87		(II) A
94	88		RE DECENTRALIZED AND HAVE NO CENTRALIZED REPOSITORY11
95	89		OR ADMINISTRATOR; OR12
96	90		(III) M
97	91		AY BE CREATED OR OBTAINED BY COMPUTING OR13
98	92		MANUFACTURING EFFORT .14
99	93		(c) "V
100	94		IRTUAL CURRENCY" DOES NOT INCLUDE DIGITAL UNITS THAT:15
101	95		(I) A
102	96		RE USED SOLELY WITHIN ONLINE GAMING PLATFORMS , WITH16
103	97		NO MARKET OR APPLICATION OUTSIDE THE GAMING PLATFORMS ;
104	98		17
105	99		(II) A
106	100		RE USED EXCLUSIVELY AS PART OF A CONSUMER AFFINITY OR18
107	101		REWARDS PROGRAM AND CAN BE APPLIED AS PAYMENT FOR PURCHASES19
108	102		WITH THE ISSUER OR OTHER DESIGNATED MERCHANTS BUT CANNOT BE20
109	103		CONVERTED INTO OR REDEEMED FOR FIAT CURRENCY ; OR
110	104		21
111	105		(III) A
112	106		RE USED AS PART OF A CONSUMER AFFINITY OR REWARDS
113	107		22
114	108		PROGRAM OFFERED THROUGH AN INSTITUTION THAT IS INSURED BY THE23
115	109		FEDERAL DEPOSIT INSURANCE CORPORATION OR THE NATIONAL CREDIT24
116	110		UNION ADMINISTRATION.25
117	111		(5) "VIRTUAL CURRENCY ADDRESS " MEANS AN ALPHANUMERIC26
118	112		IDENTIFIER REPRESENTING A DESTINATION FOR A VIRTUAL CURRENCY27
119	113		079
120	114		-3- TRANSFER THAT IS ASSOCIATED WITH A VIRTUAL CURRENCY WALLET .1
121	115		(6) "VIRTUAL CURRENCY KIOSK " MEANS AN ELECTRONIC2
122	116		TERMINAL ACTING AS A MECHANICAL AGENT OF THE OWNER OR OPERATOR3
123	117		TO ENABLE THE OWNER OR OPERATOR TO FACILITATE THE EXCHANGE OF4
124	118		VIRTUAL CURRENCY FOR OTHER VIRTUAL CURRENCY OR FIAT CURRENCY ,5
125	119		INCLUDING BY:6
126	120		(a) C
127	121		ONNECTING TO A SEPARATE VIRTUAL CURRENCY EXCHANGER7
128	122		THAT PERFORMS THE ACTUAL VIRTUAL CURRENCY TRANSMISSION ; OR8
129	123		(b) D
130	124		RAWING UPON THE VIRTUAL CURRENCY IN THE POSSESSION9
131	125		OF THE OWNER OR OPERATOR OF THE ELECTRONIC TERMINAL .10
132	126		(7)
133	127		"VIRTUAL CURRENCY WALLET " MEANS A SOFTWARE11
134	128		APPLICATION OR OTHER MECHANISM PROVIDING A MEANS FOR HOLDING ,12
135	129		STORING, AND TRANSFERRING VIRTUAL CURRENCY .13
136	130		11-112-103. Virtual currency kiosks - disclosures - receipts -14
137	131		daily limit - cancellation and refund. (1) B
138	132		EFORE ENTERING INTO A15
139	133		VIRTUAL CURRENCY TRANSACTION FOR , ON BEHALF OF, OR WITH A16
140	134		CUSTOMER, THE OWNER OR OPERATOR OF A VIRTUAL CURRENCY KIOSK17
141	135		SHALL DISCLOSE TO THE CUSTOMER IN CLEAR AND CONSPICUOUS WRITING18
142	136		IN THE ENGLISH LANGUAGE ALL MATERIAL RISKS ASSOCIATED WITH19
143	137		VIRTUAL CURRENCY. THE DISCLOSURES MUST BE DISPLAYED ON THE20
144	138		SCREEN OF THE VIRTUAL CURRENCY KIOSK WITH THE ABILITY FOR A21
145	139		CUSTOMER TO ACKNOWLEDGE RECEIPT OF THE DISCLOSURES . THE22
146	140		DISCLOSURES MUST INCLUDE AT LEAST THE FOLLOWING STATEMENT :
147	141		23
148	142		WARNING:
149	143		THIS TECHNOLOGY CAN BE USED TO
150	144		24
151	145		DEFRAUD
152	146		YOU. IF YOU HAVE BEEN DIRECTED TO THIS
153	147		25
154	148		MACHINE
155	149		BY SOMEONE CLAIMING TO BE A GOVERNMENT
156	150		26
157	151		AGENT,
158	152		BILL COLLECTOR, LAW ENFORCEMENT OFFICER,
159	153		27
160	154		079
161	155		-4- OR ANYONE YOU DO NOT KNOW PERSONALLY, STOP THIS1
162	156		TRANSACTION
163	157		IMMEDIATELY AND CONTACT YOUR
164	158		2
165	159		FINANCIAL
166	160		ADVISOR AND LOCAL LAW ENFORCEMENT.
167	161		3
168	162		4
169	163		(2) W
170	164		HEN OPENING AN ACCOUNT FOR A CUSTOMER , THE OWNER OR5
171	165		OPERATOR OF A VIRTUAL CURRENCY KIOSK SHALL DISCLOSE TO THE6
172	166		CUSTOMER IN CLEAR AND CONSPICUOUS WRITING IN THE ENGLISH7
173	167		LANGUAGE ALL RELEVANT TERMS AND CONDITIONS ASSOCIATED WITH THE8
174	168		PRODUCTS, SERVICES, AND ACTIVITIES OF THE OWNER OR OPERATOR AND9
175	169		VIRTUAL CURRENCY GENERALLY , INCLUDING THE FOLLOWING:10
176	170		(a) T
177	171		HE CUSTOMER'S LIABILITY FOR UNAUTHORIZED VIRTUAL11
178	172		CURRENCY TRANSACTIONS ;12
179	173
180	174		13
181	175		(b) UNDER WHICH CIRCUMSTANCES THE OWNER OR OPERATOR14
182	176		WILL, ABSENT A COURT OR GOVERNMENT ORDER , DISCLOSE INFORMATION15
183	177		CONCERNING THE CUSTOMER 'S ACCOUNT TO THIRD PARTIES;16
184	178		(c) THE CUSTOMER'S RIGHT TO RECEIVE PERIODIC ACCOUNT17
185	179		STATEMENTS AND VALUATIONS FROM THE OWNER OR OPERATOR ;18
186	180		(d) THE CUSTOMER'S RIGHT TO RECEIVE A RECEIPT, A TRADE19
187	181		TICKET, OR OTHER EVIDENCE OF A VIRTUAL CURRENCY TRANSACTION ; AND20
188	182		(e) THE CUSTOMER'S RIGHT TO PRIOR NOTICE OF A CHANGE IN THE21
189	183		RULES OR POLICIES OF THE OWNER OR OPERATOR .22
190	184		(3) P
191	185		RIOR TO A TRANSACTION IN VIRTUAL CURRENCY FOR , ON23
192	186		BEHALF OF, OR WITH A CUSTOMER , THE OWNER OR OPERATOR OF A24
193	187		VIRTUAL CURRENCY KIOSK SHALL DISCLOSE TO THE CUSTOMER IN CLEAR25
194	188		AND CONSPICUOUS WRITING IN THE ENGLISH LANGUAGE THE TERMS AND26
195	189		CONDITIONS OF THE VIRTUAL CURRENCY TRANSACTION , INCLUDING THE27
196	190		079
197	191		-5- FOLLOWING:1
198	192		(a) T
199	193		HE AMOUNT OF THE TRANSACTION ;2
200	194		(b) T
201	195		HE FEES, EXPENSES, AND CHARGES BORNE BY THE CUSTOMER ,3
202	196		INCLUDING APPLICABLE EXCHANGE RATES ;4
203	197		(c) T
204	198		HE TYPE AND NATURE OF THE TRANSACTION ;5
205	199		(d) A
206	200		WARNING THAT, ONCE COMPLETED, THE TRANSACTION IS6
207	201		IRREVERSIBLE, IF APPLICABLE;7
208	202		(e) T
209	203		HE DIFFERENCE IN THE VIRTUAL CURRENCY 'S SALE PRICE8
210	204		VERSUS THE CURRENT MARKET PRICE ; AND9
211	205		(f) O
212	206		THER DISCLOSURES THAT ARE CUSTOMARILY GIVEN IN10
213	207		CONNECTION WITH A VIRTUAL CURRENCY TRANSACTION .11
214	208		(4) T
215	209		HE OWNER OR OPERATOR OF A VIRTUAL CURRENCY KIOSK12
216	210		SHALL ENSURE THAT EACH CUSTOMER ACKNOWLEDGES RECEIPT OF ALL13
217	211		DISCLOSURES REQUIRED UNDER THIS SECTION .14
218	212		(5) U
219	213		PON THE COMPLETION OF A VIRTUAL CURRENCY15
220	214		TRANSACTION, THE OWNER OR OPERATOR OF A VIRTUAL CURRENCY KIOSK16
221	215		SHALL PROVIDE TO THE CUSTOMER
222	216		AN ELECTRONIC RECEIPT17
223	217		CONTAINING THE FOLLOWING INFORMATION :18
224	218		(a) T
225	219		HE NAME OF AND CONTACT INFORMATION FOR THE OWNER OR19
226	220		OPERATOR, INCLUDING A TELEPHONE NUMBER ESTABLISHED BY THE20
227	221		OWNER OR OPERATOR TO ANSWER QUESTIONS AND REGISTER COMPLAINTS ;21
228	222		(b) T
229	223		HE TYPE, VALUE, DATE, AND PRECISE TIME OF THE VIRTUAL22
230	224		CURRENCY TRANSACTION , THE TRANSACTION HASH, AND EACH VIRTUAL23
231	225		CURRENCY ADDRESS;24
232	226		(c) T
233	227		HE FEE CHARGED;25
234	228		(d) T
235	229		HE EXCHANGE RATE, IF APPLICABLE;26
236	230		(e) A
237	231		STATEMENT OF THE LIABILITY OF THE OWNER OR OPERATOR27
238	232		079
239	233		-6- FOR NONDELIVERY OR DELAYED DELIVERY OF THE CURRENCY FOR WHICH1
240	234		THE CUSTOMER EXCHANGED VIRTUAL CURRENCY ; AND2
241	235		(f) A
242	236		STATEMENT OF THE REFUND POLICY OF THE OWNER OR3
243	237		OPERATOR.4
244		-	(6)
245		-	(a) FOR A NEW CUSTOMER, THE MAXIMUM DAILY TRANSACTION5
246		-	LIMIT OF A VIRTUAL CURRENCY KIOSK IS TWO THOUSAND DOLLARS PER6
	238	+	(6) F
	239	+	OR A NEW CUSTOMER, THE
	240	+	MAXIMUM DAILY TRANSACTION5
	241	+	LIMIT OF A VIRTUAL CURRENCY KIOSK IS ONE THOUSAND DOLLARS PER6
247	242		CUSTOMER.7
248		-	(b) FOR AN EXISTING CUSTOMER, THE MAXIMUM DAILY8
249		-	TRANSACTION LIMIT OF A VIRTUAL CURRENCY KIOSK IS TEN THOUSAND9
250		-	FIVE HUNDRED DOLLARS PER CUSTOMER .10
251	243		(7) (a) T
252		-	HE OWNER OR OPERATOR OF A VIRTUAL CURRENCY ~~KIOSK11~~
253		-	SHALL, AT THE EXPENSE OF THE OWNER OR OPERATOR , ALLOW ~~A12~~
254		-	CUSTOMER TO CANCEL AND RECEIVE A FULL REFUND FOR A ~~VIRTUAL13~~
255		-	CURRENCY TRANSACTION IF:14
	244	+	HE OWNER OR OPERATOR OF A VIRTUAL CURRENCY KIOSK8
	245	+	SHALL, AT THE EXPENSE OF THE OWNER OR OPERATOR , ALLOW A9
	246	+	CUSTOMER TO CANCEL AND RECEIVE A FULL REFUND FOR A VIRTUAL10
	247	+	CURRENCY TRANSACTION IF:11
256	248		(I) T
257		-	HE VIRTUAL CURRENCY TRANSACTION WAS THE CUSTOMER '~~S15~~
258		-	FIRST VIRTUAL CURRENCY TRANSACTION ;16
	249	+	HE VIRTUAL CURRENCY TRANSACTION WAS THE CUSTOMER 'S12
	250	+	FIRST VIRTUAL CURRENCY TRANSACTION ;13
259	251		(II) T
260		-	HE VIRTUAL CURRENCY TRANSACTION WAS TO A ~~VIRTUAL17~~
261		-	CURRENCY WALLET OR EXCHANGE LOCATED OUTSIDE OF THE ~~UNITED18~~
	252	+	HE VIRTUAL CURRENCY TRANSACTION WAS TO A VIRTUAL14
	253	+	CURRENCY WALLET OR EXCHANGE LOCATED OUTSIDE OF THE UNITED15
262	254		S
263		-	TATES; AND19
264		-	(III) WITHIN SIXTY DAYS AFTER THE VIRTUAL CURRENCY20
265		-	TRANSACTION, THE CUSTOMER CONTACTS THE OWNER OR OPERATOR OF21
266		-	THE VIRTUAL CURRENCY KIOSK AND A GOVERNMENT OR LAW22
267		-	ENFORCEMENT ENTITY REGARDING THE FRAUDULENT NATURE OF THE23
268		-	TRANSACTION AND SUBMITS PROOF OF THE FRAUD, SUCH AS A POLICE24
269		-	REPORT OR NOTARIZED DECLARATION DETAILING THE FRAUDULENT25
270		-	NATURE OF THE VIRTUAL CURRENCY TRANSACTION .26
	255	+	TATES; AND16
	256	+	(III) L
	257	+	AW ENFORCEMENT DETERMINES THAT THE VIRTUAL17
	258	+	CURRENCY TRANSACTION WAS FRAUDULENT .18
271	259		(b) I
272		-	F THE CONDITIONS OF SUBSECTION (7)(a) OF THIS SECTION ARE27
	260	+	F THE CONDITIONS OF SUBSECTION (7)(a) OF THIS SECTION ARE19
	261	+	MET, THE OWNER OR OPERATOR SHALL ISSUE A FULL REFUND WITHIN20
	262	+	SEVENTY-TWO HOURS AFTER BEING NOTIFIED THAT THE VIRTUAL21
	263	+	CURRENCY TRANSACTION WAS FRAUDULENT .22
	264	+	SECTION 2. Act subject to petition - effective date. This act23
	265	+	takes effect January 1, 2026; except that, if a referendum petition is filed24
	266	+	pursuant to section 1 (3) of article V of the state constitution against this25
	267	+	act or an item, section, or part of this act within the ninety-day period26
	268	+	after final adjournment of the general assembly, then the act, item,27
273	269		079
274		-	-7- MET, THE OWNER OR OPERATOR SHALL ISSUE A FULL REFUND WITHIN1
275		-	SEVENTY-TWO HOURS AFTER BEING NOTIFIED THAT THE VIRTUAL2
276		-	CURRENCY TRANSACTION WAS FRAUDULENT .3
277		-	SECTION 2. Act subject to petition - effective date. This act4
278		-	takes effect January 1, 2026; except that, if a referendum petition is filed5
279		-	pursuant to section 1 (3) of article V of the state constitution against this6
280		-	act or an item, section, or part of this act within the ninety-day period7
281		-	after final adjournment of the general assembly, then the act, item,8
282		-	section, or part will not take effect unless approved by the people at the9
283		-	general election to be held in November 2026 and, in such case, will take10
284		-	effect on the date of the official declaration of the vote thereon by the11
285		-	governor.12
	270	+	-7- section, or part will not take effect unless approved by the people at the1
	271	+	general election to be held in November 2026 and, in such case, will take2
	272	+	effect on the date of the official declaration of the vote thereon by the3
	273	+	governor.4
286	274		079
287	275		-8-