MD
Maryland Senate Bill SB305

Maryland 2025 Regular Session

Maryland Senate Bill SB305 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
44 [Brackets] indicate matter deleted from existing law.
5- Underlining indicates amendments to bill.
6- Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7-amendment.
85 *sb0305*
96
107 SENATE BILL 305
118 I1, I3 5lr1348
129
1310 By: Senators Beidle and Hettleman
1411 Introduced and read first time: January 13, 2025
1512 Assigned to: Finance
16-Committee Report: Favorable with amendments
17-Senate action: Adopted
18-Read second time: February 21, 2025
1913
20-CHAPTER ______
14+A BILL ENTITLED
2115
2216 AN ACT concerning 1
2317
2418 Financial Institutions and Activities – Virtual Currency Kiosks – Registration 2
2519 and Regulation 3
2620
2721 FOR the purpose of establishing registration and operating requirements for a virtual 4
2822 currency kiosk operator to operate a virtual currency kiosk in the State; authorizing 5
2923 the Commissioner of Financial Regulation to investigate and enforce this Act in a 6
3024 certain manner; authorizing the Commissioner to assess and recover certain 7
3125 penalties for a knowing and willful violation of this Act; and generally relating to the 8
3226 regulation of virtual currency kiosks. 9
3327
3428 BY repealing and reenacting, without amendments, 10
3529 Article – Financial Institutions 11
3630 Section 1–101(a) and (g) 12
3731 Annotated Code of Maryland 13
3832 (2020 Replacement Volume and 2024 Supplement) 14
3933
4034 BY adding to 15
4135 Article – Financial Institutions 16
42-Section 12–1201 through 12–1207 12–1209 to be under the new subtitle “Subtitle 12. 17
43-Virtual Currency Kiosks” 18
36+Section 12–1201 through 12–1207 to be under the new subtitle “Subtitle 12. Virtual 17
37+Currency Kiosks” 18
4438 Annotated Code of Maryland 19
4539 (2020 Replacement Volume and 2024 Supplement) 20
4640
4741 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
48-That the Laws of Maryland read as follows: 22 2 SENATE BILL 305
42+That the Laws of Maryland read as follows: 22
43+
44+Article – Financial Institutions 23
45+
46+1–101. 24
47+ 2 SENATE BILL 305
48+
49+
50+ (a) In this article, unless the context clearly requires otherwise, the following 1
51+words have the meanings indicated. 2
52+
53+ (g) “Commissioner” means the Commissioner of Financial Regulation in the 3
54+Maryland Department of Labor. 4
55+
56+SUBTITLE 12. VIRTUAL CURRENCY KIOSKS. 5
57+
58+12–1201. 6
59+
60+ (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 7
61+INDICATED. 8
62+
63+ (B) (1) “VIRTUAL CURRENCY ” MEANS A DIGITAL REPRESENTATI ON OF 9
64+VALUE THAT: 10
65+
66+ (I) IS USED AS A MEDIUM OF E XCHANGE, UNIT OF ACCOUNT , OR 11
67+STORE OF VALUE ; AND 12
68+
69+ (II) IS NOT CURRENCY , AS DEFINED IN § 12–802 OF THIS TITLE. 13
70+
71+ (2) “VIRTUAL CURRENCY ” DOES NOT INCLUDE : 14
72+
73+ (I) A DIGITAL REPRESENTATI ON OF VALUE THAT CAN BE 15
74+REDEEMED FOR : 16
75+
76+ 1. GOODS, SERVICES, DISCOUNTS, OR PURCHASES 17
77+SOLELY AS PART OF A CUSTOMER AFFINITY OR REWARDS PROGRAM WITH THE 18
78+ISSUING MERCHANT OR OTHER DESIGNATED MER CHANTS, OR BOTH; OR 19
79+
80+ 2. DIGITAL UNITS IN ANOT HER CUSTOMER AFFINIT Y OR 20
81+REWARDS PROGRAM THAT MAY NOT DIRECTLY OR INDI RECTLY BE CONVERTED 21
82+INTO, REDEEMED , OR EXCHANGED FOR MON EY, MONETARY VALUE , BANK CREDIT, 22
83+OR VIRTUAL CURRENCY ; OR 23
84+
85+ (II) A DIGITAL REPRESENTATI ON OF VALUE ISSUED B Y OR ON 24
86+BEHALF OF A PUBLISHE R THAT: 25
87+
88+ 1. IS USED SOLELY WITHIN A N ONLINE GAME , GAME 26
89+PLATFORM, OR FAMILY OF GAMES S OLD BY THE SAME PUBL ISHER OR OFFERED ON 27
90+THE SAME GAME PLATFO RM; 28
91+
92+ 2. HAS NO MARKET OR APPL ICATION OUTSIDE OF T HE 29
93+ONLINE GAME , GAME PLATFORM, OR FAMILY OF GAMES ; 30 SENATE BILL 305 3
4994
5095
5196
52-Article – Financial Institutions 1
97+ 3. MAY NOT DIRECTLY OR INDIRECT LY BE CONVERTED 1
98+INTO, REDEEMED , OR EXCHANGED FOR MON EY, MONETARY VALUE , BANK CREDIT, 2
99+OR VIRTUAL CURRENCY ; AND 3
53100
54-1–101. 2
101+ 4. MAY OR MAY NOT BE REDEEM ABLE FOR REAL–WORLD 4
102+GOODS, SERVICES, DISCOUNTS, OR PURCHASES . 5
55103
56- (a) In this article, unless the context clearly requires otherwise, the following 3
57-words have the meanings indicated. 4
104+ (C) (1) “VIRTUAL CURRENCY KIOS K” MEANS A STAND –ALONE 6
105+AUTOMATED PLATFORM T HROUGH WHICH A CONSU MER MAY DEPOSIT OR RECEIVE 7
106+CASH OR USE A CREDIT OR DEBIT CARD TO OBTAIN VIRTUAL CURRE NCY SERVICES. 8
58107
59- (g) “Commissioner” means the Commissioner of Financial Regulation in the 5
60-Maryland Department of Labor. 6
108+ (2) “VIRTUAL CURRENCY KIOS K” DOES NOT INCLUDE AN AUTOMATED 9
109+TELLER MACHINE , AS DEFINED IN § 1–401(D) OF THIS ARTICLE. 10
61110
62-SUBTITLE 12. VIRTUAL CURRENCY KIOSKS. 7
111+ (D) “VIRTUAL CURRENCY KIOSK OPERATOR” OR “OPERATOR” MEANS A 11
112+PERSON WHO OWNS OR O PERATES A VIRTUAL CU RRENCY KIOSK IN THE STATE. 12
63113
64-12–1201. 8
114+ (E) (1) “VIRTUAL CURRENCY SERV ICE” MEANS: 13
65115
66- (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 9
67-INDICATED. 10
116+ (I) THE CONVERSION OF A VIRT UAL CURRENCY TO ANOT HER 14
117+FORM OF VIRTUAL CURR ENCY; OR 15
68118
69- (B) “EXPERIENCED USER ” MEANS A PERSON THAT IS NOT A NEW USER . 11
119+ (II) THE PURCHASE , SALE, EXCHANGE, SWAP, OR TRANSFER OF 16
120+VIRTUAL CURRENCY BY ANY MEANS. 17
70121
71- (C) “NEW USER” MEANS A PERSON THAT IS TRANSACTING WITH A VIRTUAL 12
72-CURRENCY KIOSK OPERA TOR: 13
122+ (2) “VIRTUAL CURRENCY SERV ICE” INCLUDES ANY OTHER A CTIVITY 18
123+THAT THE COMMISSIONER IDENTIF IES AS A VIRTUAL CUR RENCY SERVICE BY 19
124+REGULATION . 20
73125
74- (1) FOR THE FIRST TIME ; OR 14
126+ (3) “VIRTUAL CURRENCY SERVICE” DOES NOT INCLUDE MONEY 21
127+TRANSMISSION , AS DEFINED IN § 12–401(P) OF THIS TITLE. 22
75128
76- (2) ANYTIME IN THE 72 HOURS IMMEDIATELY FO LLOWING THE 15
77-PERSON’S FIRST TRANSACTION WITH THE VIRTUAL CUR RENCY KIOSK OPERATOR . 16
129+12–1202. 23
78130
79- (B) (D) (1) “VIRTUAL CURRENCY” MEANS A DIGITAL REPR ESENTATION 17
80-OF VALUE THAT : 18
131+ THIS SUBTITLE APPLIES TO A VIRTUAL CURRENCY K IOSK OPERATOR . 24
81132
82- (I) IS USED AS A MEDIUM O F EXCHANGE, UNIT OF ACCOUNT , OR 19
83-STORE OF VALUE ; AND 20
133+12–1203. 25
84134
85- (II) IS NOT CURRENCY , AS DEFINED IN § 12–802 OF THIS TITLE. 21
86-
87- (2) “VIRTUAL CURRENCY ” DOES NOT INCLUDE : 22
88-
89- (I) A DIGITAL REPRESENTATI ON OF VALUE THAT CAN BE 23
90-REDEEMED FOR : 24
91-
92- 1. GOODS, SERVICES, DISCOUNTS, OR PURCHASES 25
93-SOLELY AS PART OF A CUSTOMER AFFINITY OR REWARDS PROGRAM WITH THE 26
94-ISSUING MERCHANT OR OTHER DESIGNATED MER CHANTS, OR BOTH; OR 27
95- SENATE BILL 305 3
96-
97-
98- 2. DIGITAL UNITS IN ANOTHER CUSTOMER A FFINITY OR 1
99-REWARDS PROGRAM THAT MAY NOT DIRECTLY OR INDIRECTLY BE CONVER TED 2
100-INTO, REDEEMED , OR EXCHANGED FOR MON EY, MONETARY VALUE , BANK CREDIT, 3
101-OR VIRTUAL CURRENCY ; OR 4
102-
103- (II) A DIGITAL REPRESENTATI ON OF VALUE ISSUED B Y OR ON 5
104-BEHALF OF A PUBLISHER THAT : 6
105-
106- 1. IS USED SOLELY WITHIN AN ONLINE GAME , GAME 7
107-PLATFORM, OR FAMILY OF GAMES S OLD BY THE SAME PUBL ISHER OR OFFERED ON 8
108-THE SAME GAME PLATFO RM; 9
109-
110- 2. HAS NO MARKET OR APPL ICATION OUTSIDE OF T HE 10
111-ONLINE GAME , GAME PLATFORM , OR FAMILY OF GAMES; 11
112-
113- 3. MAY NOT DIRECTLY OR I NDIRECTLY BE CONVERT ED 12
114-INTO, REDEEMED , OR EXCHANGED FOR MON EY, MONETARY VALUE , BANK CREDIT, 13
115-OR VIRTUAL CURRENCY ; AND 14
116-
117- 4. MAY OR MAY NOT BE RED EEMABLE FOR REAL –WORLD 15
118-GOODS, SERVICES, DISCOUNTS, OR PURCHASES . 16
119-
120- (C) (E) (1) “VIRTUAL CURRENCY KIOS K” MEANS A STAND –ALONE 17
121-AUTOMATED PLATFORM T HROUGH WHICH A CONSU MER MAY DEPOSIT OR R ECEIVE 18
122-CASH OR USE A CREDIT OR DEBIT CARD TO OBT AIN VIRTUAL CURRENCY SERVICES. 19
123-
124- (2) “VIRTUAL CURRENCY KIOS K” DOES NOT INCLUDE AN AUTOMATED 20
125-TELLER MACHINE , AS DEFINED IN § 1–401(D) OF THIS ARTICLE. 21
126-
127- (D) (F) “VIRTUAL CURRENCY KIOS K OPERATOR” OR “OPERATOR” MEANS 22
128-A PERSON WHO OWNS OR OPERATES A VIRTUAL C URRENCY KIOSK IN THE STATE. 23
129-
130- (E) (G) (1) “VIRTUAL CURRENCY SERV ICE” MEANS: 24
131-
132- (I) THE CONVERSION OF A VIRT UAL CURRENCY TO ANOT HER 25
133-FORM OF VIRTUAL CURR ENCY; OR 26
134-
135- (II) THE PURCHASE , SALE, EXCHANGE, SWAP, OR TRANSFER OF 27
136-VIRTUAL CURRENCY BY ANY MEANS. 28
137-
138- (2) “VIRTUAL CURRENCY SERV ICE” INCLUDES ANY OTHER A CTIVITY 29
139-THAT THE COMMISSIONER IDENTIFI ES AS A VIRTUAL CURR ENCY SERVICE BY 30
140-REGULATION . 31
135+ (A) BEGINNING JANUARY 1, 2026, A VIRTUAL CURRENCY KIO SK OPERATOR 26
136+SHALL REGISTER A VIRTUAL CURRENCY KIO SK WITH THE COMMISSIONER BEFORE 27
137+OPERATING THE VIRTUAL CURRENCY KIOSK IN THE STATE. 28
141138 4 SENATE BILL 305
142139
143140
144- (3) “VIRTUAL CURRENCY SERV ICE” DOES NOT INCLUDE MON EY 1
145-TRANSMISSION , AS DEFINED IN § 12–401(P) OF THIS TITLE. 2
141+ (B) AN APPLICATION FOR RE GISTRATION SHALL INC LUDE: 1
146142
147-12–1202. 3
143+ (1) THE NAME OF THE VIRTUAL CURRENCY KIO SK OPERATOR ; 2
148144
149- THIS SUBTITLE APPLIES TO A VIRTUAL CURRENC Y KIOSK OPERATOR . 4
145+ (2) THE ADDRESS OF THE VIRTUAL CURRENCY KIOSK OPERATOR ; 3
150146
151-12–1203. 5
147+ (3) UNIQUE IDENTIFYING IN FORMATION FOR THE VI RTUAL 4
148+CURRENCY KIOSK , SUCH AS THE MANUFACT URER NAME, MODEL NUMBER , SERIAL 5
149+NUMBER, OR ASSET TAG; 6
152150
153- (A) BEGINNING JANUARY 1, 2026, A VIRTUAL CURRENCY K IOSK OPERATOR 6
154-SHALL REGISTER A VIR TUAL CURRENCY KIOSK WITH THE COMMISSIONER BEFORE 7
155-OPERATING THE VIRTUA L CURRENCY KIOSK IN THE STATE. 8
151+ (4) IF THE VIRTUAL CURREN CY KIOSK OPERATOR IN TENDS TO 7
152+OPERATE THE VIRTUAL CURRENCY KIOSK FROM ANY FIXED LOCATION F OR MORE 8
153+THAN 30 DAYS IN A CALENDAR Y EAR, EACH PHYSICAL ADDRES S WHERE THE 9
154+VIRTUAL CURRENCY KIOSK WILL BE OPERATED ; 10
156155
157- (B) AN APPLICATION FOR RE GISTRATION SHALL INC LUDE: 9
156+ (5) IF THE VIRTUAL CURREN CY KIOSK OPERATOR INTEND S TO 11
157+OPERATE THE VIRTUAL CURRENCY KIOSK AT AN Y LOCATION FOR 30 DAYS OR LESS 12
158+IN A CALENDAR YEAR , THE GEOGRAPHIC AREA WHERE THE LICENSEE I NTENDS TO 13
159+OPERATE THE VIRTUAL CURRENCY KIOSK ; AND 14
158160
159- (1) THE NAME OF THE VIRTUAL CURRENCY KIO SK OPERATOR ; 10
161+ (6) ANY OTHER INFORMATION THAT THE COMMISSIONER REQUIRES 15
162+BY REGULATION . 16
160163
161- (2) THE ADDRESS OF THE VI RTUAL CURRENCY KIOSK OPERATOR; 11
164+ (C) A VIRTUAL CURRENCY KIOSK OPERATOR: 17
162165
163- (3) UNIQUE IDENTIFYING IN FORMATION FOR THE VI RTUAL 12
164-CURRENCY KIOSK , SUCH AS THE MANUFACT URER NAME, MODEL NUMBER , SERIAL 13
165-NUMBER, OR ASSET TAG; 14
166+ (1) SHALL RENEW THE REGISTRATION ON AN ANNUAL BASIS ; AND 18
166167
167- (4) IF THE VIRTUAL CURRENCY KIO SK OPERATOR INTENDS TO 15
168-OPERATE THE VIRTUAL CURRENCY KIOSK FROM ANY FIXED LOCATION F OR MORE 16
169-THAN 30 DAYS IN A CALENDAR Y EAR, EACH PHYSICAL ADDRES S WHERE THE 17
170-VIRTUAL CURRENCY KIO SK WILL BE OPERATED ; 18
168+ (2) MAY BE REQUIRED TO PAY A FEE AT THE TIME OF RENEWAL. 19
171169
172- (5) IF THE VIRTUAL CURREN CY KIOSK OP ERATOR INTENDS TO 19
173-OPERATE THE VIRTUAL CURRENCY KIOSK AT AN Y LOCATION FOR 30 DAYS OR LESS 20
174-IN A CALENDAR YEAR , THE GEOGRAPHIC AREA WHERE THE LICENSEE I NTENDS TO 21
175-OPERATE THE VIRTUAL CURRENCY KIOSK ; AND 22
170+ (D) THE COMMISSIONER MAY ADOP T AND ENFORCE : 20
176171
177- (6) ANY OTHER INFORMATION THAT THE COMMISSIONER REQUIR ES 23
178-BY REGULATION . 24
172+ (1) REGISTRATION PROCEDUR ES FOR VIRTUAL CURRENCY KIOSKS , 21
173+WHICH MAY INCLUDE THE USE OF NMLS; 22
179174
180- (C) A VIRTUAL CURRENCY KIO SK OPERATOR : 25
175+ (2) REGISTRATION FEES FOR VIRTUAL CURRENCY KIOSKS , WHICH 23
176+MAY INCLUDE FEES FOR THE USE OF NMLS, TO BE PAID DIRECTLY BY THE VIRTUAL 24
177+CURRENCY KIOSK OPERA TOR; 25
181178
182- (1) SHALL RENEW THE REGIS TRATION ON AN ANNUAL BASIS; AND 26
183-
184- (2) MAY BE REQUIRED TO PA Y A FEE AT THE TIME OF RENEWAL. 27
185-
186- (D) THE COMMISSIONER MAY ADOP T AND ENFORCE : 28
179+ (3) PROCEDURES AND FEES F OR RENEWING A VIRTUAL CURRENCY 26
180+KIOSK’S REGISTRATION , WHICH MAY INCLUDE FE ES FOR THE RENEWED U SE OF 27
181+NMLS, TO BE PAID DIRECTLY BY THE VIRTUAL CURRENCY KIO SK OPERATOR ; AND 28
187182 SENATE BILL 305 5
188183
189184
190- (1) REGISTRATION PROCEDUR ES FOR VIRTUAL CURRENCY KIOSKS, 1
191-WHICH MAY INCLUDE TH E USE OF NMLS; 2
185+ (4) REGULATIONS REGARDING THE LIGHTING AND SAF ETY OF 1
186+VIRTUAL CURRENCY KIOSK LOCATIO NS. 2
192187
193- (2) REGISTRATION FEES FOR VIRTUAL CURRENCY KIO SKS, WHICH 3
194-MAY INCLUDE FEES FOR THE USE OF NMLS, TO BE PAID DIRECTLY BY THE VIRTUAL 4
195-CURRENCY KIOSK OPERA TOR; 5
188+12–1204. 3
196189
197- (3) PROCEDURES AND FEES F OR RENEWING A VIRTUAL CURR ENCY 6
198-KIOSK’S REGISTRATION , WHICH MAY INCLUDE FE ES FOR THE RENEWED U SE OF 7
199-NMLS, TO BE PAID DIRECTLY BY THE VIRTUAL CURRE NCY KIOSK OPERATOR ; AND 8
190+ (A) A VIRTUAL CURRENCY KIOSK OPERATOR SHALL ENSURE THAT TH E 4
191+VIRTUAL CURRENCY KIO SK DOES NOT, IN CONNECTION WITH V IRTUAL CURRENCY 5
192+SERVICES FOR A SINGL E PERSON IN THE STATE USING ONE OR MO RE VIRTUAL 6
193+CURRENCY KIOSKS , ACCEPT OR DISPENSE IN A SINGLE DAY MORE THAN $1,000: 7
200194
201- (4) REGULATIONS REGARDING THE LIGHTING AND SAF ETY OF 9
202-VIRTUAL CURRENCY KIO SK LOCATION S; AND 10
195+ (1) IN CASH, INCLUDING VALUE DOWN LOADED THROUGH PRE –PAID 8
196+ACCESS, AS DEFINED IN § 12–401(U) OF THIS TITLE; OR 9
203197
204- (5) REGULATIONS REGARDING APPROPRIATE SIGNAGE TO CLEARLY 11
205-IDENTIFY A KIOSK AS A VIRTUAL CURRENCY K IOSK. 12
198+ (2) THE EQUIVALENT IN CREDIT. 10
206199
207-12–1204. 13
200+ (B) A VIRTUAL CURRENCY KIO SK OPERATOR MAY NOT IMPOSE A FEE IN 11
201+EXCESS OF THE GREATER OF : 12
208202
209- (A) A VIRTUAL CURRENCY KIO SK OPERATOR SHALL EN SURE THAT THE 14
210-VIRTUAL CURRENCY KIO SK DOES NOT, IN CONNECTION WITH V IRTUAL CURRENCY 15
211-SERVICES FOR A SINGL E PERSON IN THE STATE USING ONE OR MO RE VIRTUAL 16
212-CURRENCY KIOSKS , ACCEPT OR DISPENSE I N A SINGLE DAY MORE THAN $1,000: 17
203+ (1) $5; OR 13
213204
214- (1) IN CASH, INCLUDING VALUE DOWN LOADED THROUGH PRE –PAID 18
215-ACCESS, AS DEFINED IN § 12–401(U) OF THIS TITLE; OR 19
205+ (2) 15% OF THE AMOUNT OF A VIRTUAL CURRENC Y SERVICE 14
206+TRANSACTION . 15
216207
217- (2) THE EQUIVALENT IN CRE DIT AN AMOUNT OF CASH , INCLUDING 20
218-VALUE DOWNLOADED THR OUGH PREPAID ACCESS , AS DEFINED IN § 12–401 OF THIS 21
219-TITLE, OR THE EQUIVALENT IN CREDIT THAT EXCEEDS : 22
208+ (C) A VIRTUAL CURRENCY KIO SK OPERATOR SHALL CO LLECT THE 16
209+FOLLOWING INFORMATIO N FROM A PERSON BEFORE ACCEPTING CAS H OR CREDIT 17
210+IN CONNECTION WITH A VIRTUAL CURRENCY SER VICE FROM THE PERSON: 18
220211
221- (1) FOR A NEW USER, $2,000; OR 23
212+ (1) NAME; 19
222213
223- (2) FOR AN EXPERIENCED US ER, $10,500. 24
214+ (2) DATE OF BIRTH; 20
224215
225- (B) A VIRTUAL CURRENCY KIO SK OPERATOR MAY: 25
216+ (3) MAILING ADDRESS; 21
226217
227- (1) MAY NOT IMPOSE A FEE IN EXCESS OF THE GREATE R OF: 26
218+ (4) ELECTRONIC MAIL ADDRESS; 22
228219
229- (1) (I) $5; OR 27
220+ (5) PHONE NUMBER ; AND 23
230221
231- (2) (II) 15% OF THE AMOUNT OF A V IRTUAL CURRENCY SERV ICE 28
232-TRANSACTION ; AND 29
222+ (6) A COPY OF THE PERSON’S GOVERNMENT –ISSUED 24
223+IDENTIFICATION . 25
224+
225+12–1205. 26
233226 6 SENATE BILL 305
234227
235228
236- (2) SHALL REFUND ANY FEE IMPOSED ON A TRANSAC TION THAT IS 1
237-VERIFIED AS FRAUDULE NT IN A MANNER ESTAB LISHED BY THE COMMISSIONER 2
238-THROUGH REGULATION . 3
229+ (A) A VIRTUAL CURRENCY KIO SK OPERATOR SHALL ENSURE THAT A 1
230+VIRTUAL CURRENCY KIO SK DISPLAYS ON–SCREEN DISCLOSURE S BEFORE EACH 2
231+VIRTUAL CUR RENCY SERVICE TRANSACTION THAT DISCLOSE ALL MA TERIAL RISKS 3
232+GENERALLY ASSOCIATED WITH VIRTUAL CURRENC Y IN CLEAR AND CONSP ICUOUS 4
233+LANGUAGE. 5
239234
240- (C) A VIRTUAL CURRENCY KIO SK OPERATOR SHALL COLLECT THE 4
241-FOLLOWING INFORMATIO N FROM A PERSON BEFO RE ACCEPTING CASH OR CREDIT 5
242-IN CONNECTION WITH A VIRTUAL CURRENCY SER VICE FROM THE PERSON : 6
235+ (B) THE ON–SCREEN DISCLOSURE S SHALL INCLUDE : 6
243236
244- (1) NAME; 7
237+ (1) A SCHEDULE OF FEES AND CHARGES THAT MAY BE ASSESSED; 7
245238
246- (2) DATE OF BIRTH; 8
239+ (2) THE STATEMENT : 8
247240
248- (3) MAILING ADDRESS ; 9
241+“VIRTUAL CURRENCY IS N OT MONEY OR LEGAL TE NDER AND IS NOT BACK ED OR 9
242+INSURED BY THE GOVERNMENT . VIRTUAL CURRENCY ACCO UNTS AND VALUE 10
243+BALANCES ARE NOT SU BJECT TO ANY PROTECTIONS FROM THE FEDERAL DEPOSIT 11
244+INSURANCE CORPORATION , NATIONAL CREDIT UNION ADMINISTRAT ION, OR 12
245+SECURITIES INVESTOR PROTECTION CORPORATION .”; 13
249246
250- (4) ELECTRONIC MAIL ADDRE SS; 10
247+ (3) THE STATEMENT : 14
251248
252- (5) PHONE NUMBER; AND 11
249+“WARNING: LOSSES DUE TO FRAUDU LENT OR ACCIDENTAL VIRTUAL CURRENCY 15
250+TRANSACTIONS ARE NOT RECOVERABLE AND TRANSACTION S IN VIRTUAL 16
251+CURRENCY ARE IRREVER SIBLE. VIRTUAL CURRENCY TRANSACTIONS MAY BE USED 17
252+BY SCAMMERS IMPERSON ATING LOVED ONES , THREATENING JAIL TIME, AND 18
253+INSISTING YOU WITHDR AW MONEY FROM YOUR BANK ACCOUNT TO PURCHASE 19
254+VIRTUAL CURRENCY .”; 20
253255
254- (6) A COPY OF THE PERSON ’S GOVERNMENT –ISSUED 12
255-IDENTIFICATION . 13
256+ (4) THE CONTACT INFORMATI ON FOR THE VIRTUAL C URRENCY KIOSK 21
257+OPERATOR, INCLUDING THE OPERATOR ’S NAME, PHONE NUMBER , ADDRESS, AND 22
258+HOURS OF OPERATION ; AND 23
256259
257- (D) AT THE END OF A VIRTU AL CURRENCY TRANSACT ION, THE VIRTUAL 14
258-CURRENCY KIOSK OPERA TOR SHALL DISPENSE O R DISPLAY A RECEIPT THAT 15
259-INCLUDES: 16
260-
261- (1) THE TYPE OF VIRTUAL C URRENCY SOLD OR PURCHASED ; 17
262-
263- (2) THE VALUE OF THE VIRT UAL CURRENCY SOLD OR PURCHASED , 18
264-INCLUDING THE REQUIS ITE EXCHANGE RATE FO R THE VIRTUAL CURREN CY; 19
265-
266- (3) THE DATE AND TIME OF THE TRANSACTION ; 20
267-
268- (4) IDENTIFYING INFORMATI ON FOR THE VIRTUAL C URRENCY KIOSK ; 21
269-
270- (5) THE TOLL–FREE NUMBER FOR CUST OMER SUPPORT ; AND 22
271-
272- (6) ANY OTHER INFORMATION THAT THE COMMISSIONER REQUIRES 23
273-THROUGH REGULATION . 24
274-
275-12–1205. 25
276-
277- (A) A VIRTUAL CURRENCY KIO SK OPERATOR SHALL EN SURE THAT A 26
278-VIRTUAL CURRENCY KIO SK DISPLAYS ON –SCREEN DISCLOSURES B EFORE EACH 27
279-VIRTUAL CURRENCY SER VICE TRANSACTION THA T DISCLOSE ALL MATER IAL RISKS 28 SENATE BILL 305 7
280-
281-
282-GENERALLY ASSOCIATED WITH VIRTUAL CURRENC Y IN CLEAR AND CONSP ICUOUS 1
283-LANGUAGE. 2
284-
285- (B) THE ON–SCREEN DISCLOSURES S HALL INCLUDE : 3
286-
287- (1) A SCHEDULE OF FEES AND CHARGES THAT MAY BE ASSESSED; 4
288-
289- (2) THE STATEMENT : 5
290-
291-“VIRTUAL CURRENCY IS N OT MONEY OR LEGAL TE NDER AND IS NOT BACK ED OR 6
292-INSURED BY THE GOVER NMENT. VIRTUAL CURRENCY ACCO UNTS AND VALUE 7
293-BALANCES ARE NOT SUB JECT TO ANY PROTECTI ONS FROM THE FEDERAL DEPOSIT 8
294-INSURANCE CORPORATION , NATIONAL CREDIT UNION ADMINISTRATION , OR 9
295-SECURITIES INVESTOR PROTECTION CORPORATION .”; 10
296-
297- (3) THE STATEMENT : 11
298-
299-“WARNING: LOSSES DUE TO FRAUDU LENT OR ACCIDENTAL V IRTUAL CURRENCY 12
300-TRANSACTIONS ARE MAY NOT BE RECOVERABLE AND TRAN SACTIONS IN VIRTUAL 13
301-CURRENCY ARE IRREVERSIBLE . VIRTUAL CURRENCY TRAN SACTIONS MAY BE USED 14
302-BY SCAMMERS IMPERSON ATING LOVED ONES , THREATENING JAIL TIM E, AND 15
303-INSISTING YOU WITHDR AW MONEY FROM YOUR B ANK ACCOUNT TO PURCH ASE 16
304-VIRTUAL CURRENCY .”; 17
305-
306- (4) THE CONTACT INFORMATI ON FOR THE VIRTUAL C URRENCY KIOSK 18
307-OPERATOR, INCLUDING THE OPERAT OR’S NAME, PHONE NUMBER , ADDRESS, AND 19
308-HOURS OF OPERATION ; 20
309-
310- (5) THE CURRENT EXCHANGE RATES FOR EACH TYPE OF VIRTUAL 21
311-CURRENCY ELIGIBLE TO BE SOLD OR PURCHASED AT THE VIRTUAL CURRE NCY 22
312-KIOSK; AND 23
313-
314- (5) (6) ANY OTHER INFORMATION THAT THE COMMISSIONER 24
315-REQUIRES BY REGULATI ON. 25
260+ (5) ANY OTHER INFORMATION THAT THE COMMISSIONER REQUIRES 24
261+BY REGULATION . 25
316262
317263 (C) THE VIRTUAL CURRENCY OPERATOR SHALL ENSUR E THAT A PERSON 26
318264 USING THE OPERATOR ’S VIRTUAL CURRENCY KIO SK IS REQUIRED TO 27
319265 ACKNOWLEDGE AND ACCE PT EACH DISCLOSURE B EFORE THE PERSON MAY RECEIVE 28
320266 VIRTUAL CURRENCY SER VICES. 29
321267
322- (D) THE COMMISSIONER SHALL AD OPT REGULATIONS ESTA BLISHING THE 30
323-MINIMUM AMOUNT OF TI ME THAT EACH DISCLOS URE MUST REMAIN ON T HE SCREEN 31
324-BEFORE ADVANCING . 32
325- 8 SENATE BILL 305
268+12–1206. 30
269+ SENATE BILL 305 7
326270
327271
328-12–1206. 1
272+ (A) THE COMMISSIONER MAY USE THE INVESTIGATIVE AN D ENFORCEMENT 1
273+POWERS UNDER §§ 2–113 THROUGH 2–116 OF THIS ARTICLE TO ENFORCE T HIS 2
274+SUBTITLE. 3
329275
330- A VIRTUAL CURRENCY OPE RATOR SHALL MAINTAIN LIVE CUSTOMER 2
331-SUPPORT THAT , AT A MINIMUM, IS: 3
276+ (B) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , THE 4
277+COMMISSIONER MAY IMPO SE THE PENALTIES UND ER §§ 2–113 THROUGH 2–116 OF 5
278+THIS ARTICLE FOR A V IOLATION OF THIS SUB TITLE. 6
332279
333- (1) REACHABLE BY TELEPHON E AT A TOLL–FREE NUMBER ; AND 4
280+ (2) THE COMMISSIONER MAY ASSESS AGAINST A VIRTUAL CURRENCY 7
281+KIOSK OPERATOR A CIVIL PENALTY NOT EXCEEDING $1,000 FOR EACH KNOWING 8
282+AND WILLFUL VIOLATIO N OF THIS SUBTITLE. 9
334283
335- (2) AVAILABLE MONDAY THROUGH FRIDAY BETWEEN 8 A.M. AND 6 5
336-P.M. 6
284+ (3) EACH DAY THAT A VIOLATION OCCURS OR CONTINUES IS A 10
285+SEPARATE VIOLATION . 11
337286
338-12–1207. 7
287+12–1207. 12
339288
340- A VIRTUAL CURRENCY KIO SK OPERATOR SHALL EN SURE THAT THE VIRTUA L 8
341-CURRENCY KIOSK : 9
289+ THE COMMISSIONER MAY ADOP T REGULATIONS TO CARRY OUT THIS 13
290+SUBTITLE. 14
342291
343- (1) OPERATES SOLELY FOR T HE PURPOSE OF VIRTUA L CURRENCY 10
344-SERVICES; AND 11
345-
346- (2) DOES NOT OPERATE AS A N AUTOMATED TELLER M ACHINE AS 12
347-DEFINED UNDER § 1–401 OF THIS ARTICLE. 13
348-
349-12–1208. 14
350-
351- (A) THE COMMISSIONER MAY USE THE INVESTIGATIVE AN D ENFORCEMENT 15
352-POWERS UNDER §§ 2–113 THROUGH 2–116 OF THIS ARTICLE TO E NFORCE THIS 16
353-SUBTITLE. 17
354-
355- (B) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , THE 18
356-COMMISSIONER MAY IMPO SE THE PENALTIES UND ER §§ 2–113 THROUGH 2–116 OF 19
357-THIS ARTICLE FOR A V IOLATION OF THIS SUB TITLE. 20
358-
359- (2) THE COMMISSIONER MAY ASSE SS AGAINST A VIRTUAL CURRENCY 21
360-KIOSK OPERATOR A CIV IL PENALTY NOT EXCEE DING $1,000 FOR EACH KNOWING 22
361-AND WILLFUL VIOLATIO N OF THIS SUBTITLE . 23
362-
363- (3) EACH DAY THAT A VIOLA TION OCCURS OR CONTI NUES IS A 24
364-SEPARATE VIOLATION . 25
365-
366-12–1207. 12–1209. 26
367-
368- THE COMMISSIONER MAY SHALL ADOPT REGULATIONS TO CARRY OUT THIS 27
369-SUBTITLE. 28
370- SENATE BILL 305 9
371-
372-
373- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
374-1, 2025. 2
375-
376-
377-
378-Approved:
379-________________________________________________________________________________
380- Governor.
381-________________________________________________________________________________
382- President of the Senate.
383-________________________________________________________________________________
384- Speaker of the House of Delegates.
292+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 15
293+1, 2025. 16