EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0305*
SENATE BILL 305
I1, I3 5lr1348
By: Senators Beidle and Hettleman
Introduced and read first time: January 13, 2025
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Financial Institutions and Activities – Virtual Currency Kiosks – Registration 2
and Regulation 3
FOR the purpose of establishing registration and operating requirements for a virtual 4
currency kiosk operator to operate a virtual currency kiosk in the State; authorizing 5
the Commissioner of Financial Regulation to investigate and enforce this Act in a 6
certain manner; authorizing the Commissioner to assess and recover certain 7
penalties for a knowing and willful violation of this Act; and generally relating to the 8
regulation of virtual currency kiosks. 9
BY repealing and reenacting, without amendments, 10
Article – Financial Institutions 11
Section 1–101(a) and (g) 12
Annotated Code of Maryland 13
(2020 Replacement Volume and 2024 Supplement) 14
BY adding to 15
Article – Financial Institutions 16
Section 12–1201 through 12–1207 to be under the new subtitle “Subtitle 12. Virtual 17
Currency Kiosks” 18
Annotated Code of Maryland 19
(2020 Replacement Volume and 2024 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Financial Institutions 23
1–101. 24
2 SENATE BILL 305
(a) In this article, unless the context clearly requires otherwise, the following 1
words have the meanings indicated. 2
(g) “Commissioner” means the Commissioner of Financial Regulation in the 3
Maryland Department of Labor. 4
SUBTITLE 12. VIRTUAL CURRENCY KIOSKS. 5
12–1201. 6
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8
(B) (1) “VIRTUAL CURRENCY ” MEANS A DIGITAL REPRESENTATI ON OF 9
VALUE THAT: 10
(I) IS USED AS A MEDIUM OF E XCHANGE, UNIT OF ACCOUNT , OR 11
STORE OF VALUE ; AND 12
(II) IS NOT CURRENCY , AS DEFINED IN § 12–802 OF THIS TITLE. 13
(2) “VIRTUAL CURRENCY ” DOES NOT INCLUDE : 14
(I) A DIGITAL REPRESENTATI ON OF VALUE THAT CAN BE 15
REDEEMED FOR : 16
1. GOODS, SERVICES, DISCOUNTS, OR PURCHASES 17
SOLELY AS PART OF A CUSTOMER AFFINITY OR REWARDS PROGRAM WITH THE 18
ISSUING MERCHANT OR OTHER DESIGNATED MER CHANTS, OR BOTH; OR 19
2. DIGITAL UNITS IN ANOT HER CUSTOMER AFFINIT Y OR 20
REWARDS PROGRAM THAT MAY NOT DIRECTLY OR INDI RECTLY BE CONVERTED 21
INTO, REDEEMED , OR EXCHANGED FOR MON EY, MONETARY VALUE , BANK CREDIT, 22
OR VIRTUAL CURRENCY ; OR 23
(II) A DIGITAL REPRESENTATI ON OF VALUE ISSUED B Y OR ON 24
BEHALF OF A PUBLISHE R THAT: 25
1. IS USED SOLELY WITHIN A N ONLINE GAME , GAME 26
PLATFORM, OR FAMILY OF GAMES S OLD BY THE SAME PUBL ISHER OR OFFERED ON 27
THE SAME GAME PLATFO RM; 28
2. HAS NO MARKET OR APPL ICATION OUTSIDE OF T HE 29
ONLINE GAME , GAME PLATFORM, OR FAMILY OF GAMES ; 30 SENATE BILL 305 3
3. MAY NOT DIRECTLY OR INDIRECT LY BE CONVERTED 1
INTO, REDEEMED , OR EXCHANGED FOR MON EY, MONETARY VALUE , BANK CREDIT, 2
OR VIRTUAL CURRENCY ; AND 3
4. MAY OR MAY NOT BE REDEEM ABLE FOR REAL–WORLD 4
GOODS, SERVICES, DISCOUNTS, OR PURCHASES . 5
(C) (1) “VIRTUAL CURRENCY KIOS K” MEANS A STAND –ALONE 6
AUTOMATED PLATFORM T HROUGH WHICH A CONSU MER MAY DEPOSIT OR RECEIVE 7
CASH OR USE A CREDIT OR DEBIT CARD TO OBTAIN VIRTUAL CURRE NCY SERVICES. 8
(2) “VIRTUAL CURRENCY KIOS K” DOES NOT INCLUDE AN AUTOMATED 9
TELLER MACHINE , AS DEFINED IN § 1–401(D) OF THIS ARTICLE. 10
(D) “VIRTUAL CURRENCY KIOSK OPERATOR” OR “OPERATOR” MEANS A 11
PERSON WHO OWNS OR O PERATES A VIRTUAL CU RRENCY KIOSK IN THE STATE. 12
(E) (1) “VIRTUAL CURRENCY SERV ICE” MEANS: 13
(I) THE CONVERSION OF A VIRT UAL CURRENCY TO ANOT HER 14
FORM OF VIRTUAL CURR ENCY; OR 15
(II) THE PURCHASE , SALE, EXCHANGE, SWAP, OR TRANSFER OF 16
VIRTUAL CURRENCY BY ANY MEANS. 17
(2) “VIRTUAL CURRENCY SERV ICE” INCLUDES ANY OTHER A CTIVITY 18
THAT THE COMMISSIONER IDENTIF IES AS A VIRTUAL CUR RENCY SERVICE BY 19
REGULATION . 20
(3) “VIRTUAL CURRENCY SERVICE” DOES NOT INCLUDE MONEY 21
TRANSMISSION , AS DEFINED IN § 12–401(P) OF THIS TITLE. 22
12–1202. 23
THIS SUBTITLE APPLIES TO A VIRTUAL CURRENCY K IOSK OPERATOR . 24
12–1203. 25
(A) BEGINNING JANUARY 1, 2026, A VIRTUAL CURRENCY KIO SK OPERATOR 26
SHALL REGISTER A VIRTUAL CURRENCY KIO SK WITH THE COMMISSIONER BEFORE 27
OPERATING THE VIRTUAL CURRENCY KIOSK IN THE STATE. 28
4 SENATE BILL 305
(B) AN APPLICATION FOR RE GISTRATION SHALL INC LUDE: 1
(1) THE NAME OF THE VIRTUAL CURRENCY KIO SK OPERATOR ; 2
(2) THE ADDRESS OF THE VIRTUAL CURRENCY KIOSK OPERATOR ; 3
(3) UNIQUE IDENTIFYING IN FORMATION FOR THE VI RTUAL 4
CURRENCY KIOSK , SUCH AS THE MANUFACT URER NAME, MODEL NUMBER , SERIAL 5
NUMBER, OR ASSET TAG; 6
(4) IF THE VIRTUAL CURREN CY KIOSK OPERATOR IN TENDS TO 7
OPERATE THE VIRTUAL CURRENCY KIOSK FROM ANY FIXED LOCATION F OR MORE 8
THAN 30 DAYS IN A CALENDAR Y EAR, EACH PHYSICAL ADDRES S WHERE THE 9
VIRTUAL CURRENCY KIOSK WILL BE OPERATED ; 10
(5) IF THE VIRTUAL CURREN CY KIOSK OPERATOR INTEND S TO 11
OPERATE THE VIRTUAL CURRENCY KIOSK AT AN Y LOCATION FOR 30 DAYS OR LESS 12
IN A CALENDAR YEAR , THE GEOGRAPHIC AREA WHERE THE LICENSEE I NTENDS TO 13
OPERATE THE VIRTUAL CURRENCY KIOSK ; AND 14
(6) ANY OTHER INFORMATION THAT THE COMMISSIONER REQUIRES 15
BY REGULATION . 16
(C) A VIRTUAL CURRENCY KIOSK OPERATOR: 17
(1) SHALL RENEW THE REGISTRATION ON AN ANNUAL BASIS ; AND 18
(2) MAY BE REQUIRED TO PAY A FEE AT THE TIME OF RENEWAL. 19
(D) THE COMMISSIONER MAY ADOP T AND ENFORCE : 20
(1) REGISTRATION PROCEDUR ES FOR VIRTUAL CURRENCY KIOSKS , 21
WHICH MAY INCLUDE THE USE OF NMLS; 22
(2) REGISTRATION FEES FOR VIRTUAL CURRENCY KIOSKS , WHICH 23
MAY INCLUDE FEES FOR THE USE OF NMLS, TO BE PAID DIRECTLY BY THE VIRTUAL 24
CURRENCY KIOSK OPERA TOR; 25
(3) PROCEDURES AND FEES F OR RENEWING A VIRTUAL CURRENCY 26
KIOSK’S REGISTRATION , WHICH MAY INCLUDE FE ES FOR THE RENEWED U SE OF 27
NMLS, TO BE PAID DIRECTLY BY THE VIRTUAL CURRENCY KIO SK OPERATOR ; AND 28
SENATE BILL 305 5
(4) REGULATIONS REGARDING THE LIGHTING AND SAF ETY OF 1
VIRTUAL CURRENCY KIOSK LOCATIO NS. 2
12–1204. 3
(A) A VIRTUAL CURRENCY KIOSK OPERATOR SHALL ENSURE THAT TH E 4
VIRTUAL CURRENCY KIO SK DOES NOT, IN CONNECTION WITH V IRTUAL CURRENCY 5
SERVICES FOR A SINGL E PERSON IN THE STATE USING ONE OR MO RE VIRTUAL 6
CURRENCY KIOSKS , ACCEPT OR DISPENSE IN A SINGLE DAY MORE THAN $1,000: 7
(1) IN CASH, INCLUDING VALUE DOWN LOADED THROUGH PRE –PAID 8
ACCESS, AS DEFINED IN § 12–401(U) OF THIS TITLE; OR 9
(2) THE EQUIVALENT IN CREDIT. 10
(B) A VIRTUAL CURRENCY KIO SK OPERATOR MAY NOT IMPOSE A FEE IN 11
EXCESS OF THE GREATER OF : 12
(1) $5; OR 13
(2) 15% OF THE AMOUNT OF A VIRTUAL CURRENC Y SERVICE 14
TRANSACTION . 15
(C) A VIRTUAL CURRENCY KIO SK OPERATOR SHALL CO LLECT THE 16
FOLLOWING INFORMATIO N FROM A PERSON BEFORE ACCEPTING CAS H OR CREDIT 17
IN CONNECTION WITH A VIRTUAL CURRENCY SER VICE FROM THE PERSON: 18
(1) NAME; 19
(2) DATE OF BIRTH; 20
(3) MAILING ADDRESS; 21
(4) ELECTRONIC MAIL ADDRESS; 22
(5) PHONE NUMBER ; AND 23
(6) A COPY OF THE PERSON’S GOVERNMENT –ISSUED 24
IDENTIFICATION . 25
12–1205. 26
6 SENATE BILL 305
(A) A VIRTUAL CURRENCY KIO SK OPERATOR SHALL ENSURE THAT A 1
VIRTUAL CURRENCY KIO SK DISPLAYS ON–SCREEN DISCLOSURE S BEFORE EACH 2
VIRTUAL CUR RENCY SERVICE TRANSACTION THAT DISCLOSE ALL MA TERIAL RISKS 3
GENERALLY ASSOCIATED WITH VIRTUAL CURRENC Y IN CLEAR AND CONSP ICUOUS 4
LANGUAGE. 5
(B) THE ON–SCREEN DISCLOSURE S SHALL INCLUDE : 6
(1) A SCHEDULE OF FEES AND CHARGES THAT MAY BE ASSESSED; 7
(2) THE STATEMENT : 8
“VIRTUAL CURRENCY IS N OT MONEY OR LEGAL TE NDER AND IS NOT BACK ED OR 9
INSURED BY THE GOVERNMENT . VIRTUAL CURRENCY ACCO UNTS AND VALUE 10
BALANCES ARE NOT SU BJECT TO ANY PROTECTIONS FROM THE FEDERAL DEPOSIT 11
INSURANCE CORPORATION , NATIONAL CREDIT UNION ADMINISTRAT ION, OR 12
SECURITIES INVESTOR PROTECTION CORPORATION .”; 13
(3) THE STATEMENT : 14
“WARNING: LOSSES DUE TO FRAUDU LENT OR ACCIDENTAL VIRTUAL CURRENCY 15
TRANSACTIONS ARE NOT RECOVERABLE AND TRANSACTION S IN VIRTUAL 16
CURRENCY ARE IRREVER SIBLE. VIRTUAL CURRENCY TRANSACTIONS MAY BE USED 17
BY SCAMMERS IMPERSON ATING LOVED ONES , THREATENING JAIL TIME, AND 18
INSISTING YOU WITHDR AW MONEY FROM YOUR BANK ACCOUNT TO PURCHASE 19
VIRTUAL CURRENCY .”; 20
(4) THE CONTACT INFORMATI ON FOR THE VIRTUAL C URRENCY KIOSK 21
OPERATOR, INCLUDING THE OPERATOR ’S NAME, PHONE NUMBER , ADDRESS, AND 22
HOURS OF OPERATION ; AND 23
(5) ANY OTHER INFORMATION THAT THE COMMISSIONER REQUIRES 24
BY REGULATION . 25
(C) THE VIRTUAL CURRENCY OPERATOR SHALL ENSUR E THAT A PERSON 26
USING THE OPERATOR ’S VIRTUAL CURRENCY KIO SK IS REQUIRED TO 27
ACKNOWLEDGE AND ACCE PT EACH DISCLOSURE B EFORE THE PERSON MAY RECEIVE 28
VIRTUAL CURRENCY SER VICES. 29
12–1206. 30
SENATE BILL 305 7
(A) THE COMMISSIONER MAY USE THE INVESTIGATIVE AN D ENFORCEMENT 1
POWERS UNDER §§ 2–113 THROUGH 2–116 OF THIS ARTICLE TO ENFORCE T HIS 2
SUBTITLE. 3
(B) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , THE 4
COMMISSIONER MAY IMPO SE THE PENALTIES UND ER §§ 2–113 THROUGH 2–116 OF 5
THIS ARTICLE FOR A V IOLATION OF THIS SUB TITLE. 6
(2) THE COMMISSIONER MAY ASSESS AGAINST A VIRTUAL CURRENCY 7
KIOSK OPERATOR A CIVIL PENALTY NOT EXCEEDING $1,000 FOR EACH KNOWING 8
AND WILLFUL VIOLATIO N OF THIS SUBTITLE. 9
(3) EACH DAY THAT A VIOLATION OCCURS OR CONTINUES IS A 10
SEPARATE VIOLATION . 11
12–1207. 12
THE COMMISSIONER MAY ADOP T REGULATIONS TO CARRY OUT THIS 13
SUBTITLE. 14
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 15
1, 2025. 16