EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0305*
SENATE BILL 305
I1, I3 5lr1348
By: Senators Beidle and Hettleman
Introduced and read first time: January 13, 2025
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 21, 2025
CHAPTER ______
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 12–1209 to be under the new subtitle “Subtitle 12. 17
Virtual 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 2 SENATE BILL 305
Article – Financial Institutions 1
1–101. 2
(a) In this article, unless the context clearly requires otherwise, the following 3
words have the meanings indicated. 4
(g) “Commissioner” means the Commissioner of Financial Regulation in the 5
Maryland Department of Labor. 6
SUBTITLE 12. VIRTUAL CURRENCY KIOSKS. 7
12–1201. 8
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 9
INDICATED. 10
(B) “EXPERIENCED USER ” MEANS A PERSON THAT IS NOT A NEW USER . 11
(C) “NEW USER” MEANS A PERSON THAT IS TRANSACTING WITH A VIRTUAL 12
CURRENCY KIOSK OPERA TOR: 13
(1) FOR THE FIRST TIME ; OR 14
(2) ANYTIME IN THE 72 HOURS IMMEDIATELY FO LLOWING THE 15
PERSON’S FIRST TRANSACTION WITH THE VIRTUAL CUR RENCY KIOSK OPERATOR . 16
(B) (D) (1) “VIRTUAL CURRENCY” MEANS A DIGITAL REPR ESENTATION 17
OF VALUE THAT : 18
(I) IS USED AS A MEDIUM O F EXCHANGE, UNIT OF ACCOUNT , OR 19
STORE OF VALUE ; AND 20
(II) IS NOT CURRENCY , AS DEFINED IN § 12–802 OF THIS TITLE. 21
(2) “VIRTUAL CURRENCY ” DOES NOT INCLUDE : 22
(I) A DIGITAL REPRESENTATI ON OF VALUE THAT CAN BE 23
REDEEMED FOR : 24
1. GOODS, SERVICES, DISCOUNTS, OR PURCHASES 25
SOLELY AS PART OF A CUSTOMER AFFINITY OR REWARDS PROGRAM WITH THE 26
ISSUING MERCHANT OR OTHER DESIGNATED MER CHANTS, OR BOTH; OR 27
SENATE BILL 305 3
2. DIGITAL UNITS IN ANOTHER CUSTOMER A FFINITY OR 1
REWARDS PROGRAM THAT MAY NOT DIRECTLY OR INDIRECTLY BE CONVER TED 2
INTO, REDEEMED , OR EXCHANGED FOR MON EY, MONETARY VALUE , BANK CREDIT, 3
OR VIRTUAL CURRENCY ; OR 4
(II) A DIGITAL REPRESENTATI ON OF VALUE ISSUED B Y OR ON 5
BEHALF OF A PUBLISHER THAT : 6
1. IS USED SOLELY WITHIN AN ONLINE GAME , GAME 7
PLATFORM, OR FAMILY OF GAMES S OLD BY THE SAME PUBL ISHER OR OFFERED ON 8
THE SAME GAME PLATFO RM; 9
2. HAS NO MARKET OR APPL ICATION OUTSIDE OF T HE 10
ONLINE GAME , GAME PLATFORM , OR FAMILY OF GAMES; 11
3. MAY NOT DIRECTLY OR I NDIRECTLY BE CONVERT ED 12
INTO, REDEEMED , OR EXCHANGED FOR MON EY, MONETARY VALUE , BANK CREDIT, 13
OR VIRTUAL CURRENCY ; AND 14
4. MAY OR MAY NOT BE RED EEMABLE FOR REAL –WORLD 15
GOODS, SERVICES, DISCOUNTS, OR PURCHASES . 16
(C) (E) (1) “VIRTUAL CURRENCY KIOS K” MEANS A STAND –ALONE 17
AUTOMATED PLATFORM T HROUGH WHICH A CONSU MER MAY DEPOSIT OR R ECEIVE 18
CASH OR USE A CREDIT OR DEBIT CARD TO OBT AIN VIRTUAL CURRENCY SERVICES. 19
(2) “VIRTUAL CURRENCY KIOS K” DOES NOT INCLUDE AN AUTOMATED 20
TELLER MACHINE , AS DEFINED IN § 1–401(D) OF THIS ARTICLE. 21
(D) (F) “VIRTUAL CURRENCY KIOS K OPERATOR” OR “OPERATOR” MEANS 22
A PERSON WHO OWNS OR OPERATES A VIRTUAL C URRENCY KIOSK IN THE STATE. 23
(E) (G) (1) “VIRTUAL CURRENCY SERV ICE” MEANS: 24
(I) THE CONVERSION OF A VIRT UAL CURRENCY TO ANOT HER 25
FORM OF VIRTUAL CURR ENCY; OR 26
(II) THE PURCHASE , SALE, EXCHANGE, SWAP, OR TRANSFER OF 27
VIRTUAL CURRENCY BY ANY MEANS. 28
(2) “VIRTUAL CURRENCY SERV ICE” INCLUDES ANY OTHER A CTIVITY 29
THAT THE COMMISSIONER IDENTIFI ES AS A VIRTUAL CURR ENCY SERVICE BY 30
REGULATION . 31
4 SENATE BILL 305
(3) “VIRTUAL CURRENCY SERV ICE” DOES NOT INCLUDE MON EY 1
TRANSMISSION , AS DEFINED IN § 12–401(P) OF THIS TITLE. 2
12–1202. 3
THIS SUBTITLE APPLIES TO A VIRTUAL CURRENC Y KIOSK OPERATOR . 4
12–1203. 5
(A) BEGINNING JANUARY 1, 2026, A VIRTUAL CURRENCY K IOSK OPERATOR 6
SHALL REGISTER A VIR TUAL CURRENCY KIOSK WITH THE COMMISSIONER BEFORE 7
OPERATING THE VIRTUA L CURRENCY KIOSK IN THE STATE. 8
(B) AN APPLICATION FOR RE GISTRATION SHALL INC LUDE: 9
(1) THE NAME OF THE VIRTUAL CURRENCY KIO SK OPERATOR ; 10
(2) THE ADDRESS OF THE VI RTUAL CURRENCY KIOSK OPERATOR; 11
(3) UNIQUE IDENTIFYING IN FORMATION FOR THE VI RTUAL 12
CURRENCY KIOSK , SUCH AS THE MANUFACT URER NAME, MODEL NUMBER , SERIAL 13
NUMBER, OR ASSET TAG; 14
(4) IF THE VIRTUAL CURRENCY KIO SK OPERATOR INTENDS TO 15
OPERATE THE VIRTUAL CURRENCY KIOSK FROM ANY FIXED LOCATION F OR MORE 16
THAN 30 DAYS IN A CALENDAR Y EAR, EACH PHYSICAL ADDRES S WHERE THE 17
VIRTUAL CURRENCY KIO SK WILL BE OPERATED ; 18
(5) IF THE VIRTUAL CURREN CY KIOSK OP ERATOR INTENDS TO 19
OPERATE THE VIRTUAL CURRENCY KIOSK AT AN Y LOCATION FOR 30 DAYS OR LESS 20
IN A CALENDAR YEAR , THE GEOGRAPHIC AREA WHERE THE LICENSEE I NTENDS TO 21
OPERATE THE VIRTUAL CURRENCY KIOSK ; AND 22
(6) ANY OTHER INFORMATION THAT THE COMMISSIONER REQUIR ES 23
BY REGULATION . 24
(C) A VIRTUAL CURRENCY KIO SK OPERATOR : 25
(1) SHALL RENEW THE REGIS TRATION ON AN ANNUAL BASIS; AND 26
(2) MAY BE REQUIRED TO PA Y A FEE AT THE TIME OF RENEWAL. 27
(D) THE COMMISSIONER MAY ADOP T AND ENFORCE : 28
SENATE BILL 305 5
(1) REGISTRATION PROCEDUR ES FOR VIRTUAL CURRENCY KIOSKS, 1
WHICH MAY INCLUDE TH E USE OF NMLS; 2
(2) REGISTRATION FEES FOR VIRTUAL CURRENCY KIO SKS, WHICH 3
MAY INCLUDE FEES FOR THE USE OF NMLS, TO BE PAID DIRECTLY BY THE VIRTUAL 4
CURRENCY KIOSK OPERA TOR; 5
(3) PROCEDURES AND FEES F OR RENEWING A VIRTUAL CURR ENCY 6
KIOSK’S REGISTRATION , WHICH MAY INCLUDE FE ES FOR THE RENEWED U SE OF 7
NMLS, TO BE PAID DIRECTLY BY THE VIRTUAL CURRE NCY KIOSK OPERATOR ; AND 8
(4) REGULATIONS REGARDING THE LIGHTING AND SAF ETY OF 9
VIRTUAL CURRENCY KIO SK LOCATION S; AND 10
(5) REGULATIONS REGARDING APPROPRIATE SIGNAGE TO CLEARLY 11
IDENTIFY A KIOSK AS A VIRTUAL CURRENCY K IOSK. 12
12–1204. 13
(A) A VIRTUAL CURRENCY KIO SK OPERATOR SHALL EN SURE THAT THE 14
VIRTUAL CURRENCY KIO SK DOES NOT, IN CONNECTION WITH V IRTUAL CURRENCY 15
SERVICES FOR A SINGL E PERSON IN THE STATE USING ONE OR MO RE VIRTUAL 16
CURRENCY KIOSKS , ACCEPT OR DISPENSE I N A SINGLE DAY MORE THAN $1,000: 17
(1) IN CASH, INCLUDING VALUE DOWN LOADED THROUGH PRE –PAID 18
ACCESS, AS DEFINED IN § 12–401(U) OF THIS TITLE; OR 19
(2) THE EQUIVALENT IN CRE DIT AN AMOUNT OF CASH , INCLUDING 20
VALUE DOWNLOADED THR OUGH PREPAID ACCESS , AS DEFINED IN § 12–401 OF THIS 21
TITLE, OR THE EQUIVALENT IN CREDIT THAT EXCEEDS : 22
(1) FOR A NEW USER, $2,000; OR 23
(2) FOR AN EXPERIENCED US ER, $10,500. 24
(B) A VIRTUAL CURRENCY KIO SK OPERATOR MAY: 25
(1) MAY NOT IMPOSE A FEE IN EXCESS OF THE GREATE R OF: 26
(1) (I) $5; OR 27
(2) (II) 15% OF THE AMOUNT OF A V IRTUAL CURRENCY SERV ICE 28
TRANSACTION ; AND 29
6 SENATE BILL 305
(2) SHALL REFUND ANY FEE IMPOSED ON A TRANSAC TION THAT IS 1
VERIFIED AS FRAUDULE NT IN A MANNER ESTAB LISHED BY THE COMMISSIONER 2
THROUGH REGULATION . 3
(C) A VIRTUAL CURRENCY KIO SK OPERATOR SHALL COLLECT THE 4
FOLLOWING INFORMATIO N FROM A PERSON BEFO RE ACCEPTING CASH OR CREDIT 5
IN CONNECTION WITH A VIRTUAL CURRENCY SER VICE FROM THE PERSON : 6
(1) NAME; 7
(2) DATE OF BIRTH; 8
(3) MAILING ADDRESS ; 9
(4) ELECTRONIC MAIL ADDRE SS; 10
(5) PHONE NUMBER; AND 11
(6) A COPY OF THE PERSON ’S GOVERNMENT –ISSUED 12
IDENTIFICATION . 13
(D) AT THE END OF A VIRTU AL CURRENCY TRANSACT ION, THE VIRTUAL 14
CURRENCY KIOSK OPERA TOR SHALL DISPENSE O R DISPLAY A RECEIPT THAT 15
INCLUDES: 16
(1) THE TYPE OF VIRTUAL C URRENCY SOLD OR PURCHASED ; 17
(2) THE VALUE OF THE VIRT UAL CURRENCY SOLD OR PURCHASED , 18
INCLUDING THE REQUIS ITE EXCHANGE RATE FO R THE VIRTUAL CURREN CY; 19
(3) THE DATE AND TIME OF THE TRANSACTION ; 20
(4) IDENTIFYING INFORMATI ON FOR THE VIRTUAL C URRENCY KIOSK ; 21
(5) THE TOLL–FREE NUMBER FOR CUST OMER SUPPORT ; AND 22
(6) ANY OTHER INFORMATION THAT THE COMMISSIONER REQUIRES 23
THROUGH REGULATION . 24
12–1205. 25
(A) A VIRTUAL CURRENCY KIO SK OPERATOR SHALL EN SURE THAT A 26
VIRTUAL CURRENCY KIO SK DISPLAYS ON –SCREEN DISCLOSURES B EFORE EACH 27
VIRTUAL CURRENCY SER VICE TRANSACTION THA T DISCLOSE ALL MATER IAL RISKS 28 SENATE BILL 305 7
GENERALLY ASSOCIATED WITH VIRTUAL CURRENC Y IN CLEAR AND CONSP ICUOUS 1
LANGUAGE. 2
(B) THE ON–SCREEN DISCLOSURES S HALL INCLUDE : 3
(1) A SCHEDULE OF FEES AND CHARGES THAT MAY BE ASSESSED; 4
(2) THE STATEMENT : 5
“VIRTUAL CURRENCY IS N OT MONEY OR LEGAL TE NDER AND IS NOT BACK ED OR 6
INSURED BY THE GOVER NMENT. VIRTUAL CURRENCY ACCO UNTS AND VALUE 7
BALANCES ARE NOT SUB JECT TO ANY PROTECTI ONS FROM THE FEDERAL DEPOSIT 8
INSURANCE CORPORATION , NATIONAL CREDIT UNION ADMINISTRATION , OR 9
SECURITIES INVESTOR PROTECTION CORPORATION .”; 10
(3) THE STATEMENT : 11
“WARNING: LOSSES DUE TO FRAUDU LENT OR ACCIDENTAL V IRTUAL CURRENCY 12
TRANSACTIONS ARE MAY NOT BE RECOVERABLE AND TRAN SACTIONS IN VIRTUAL 13
CURRENCY ARE IRREVERSIBLE . VIRTUAL CURRENCY TRAN SACTIONS MAY BE USED 14
BY SCAMMERS IMPERSON ATING LOVED ONES , THREATENING JAIL TIM E, AND 15
INSISTING YOU WITHDR AW MONEY FROM YOUR B ANK ACCOUNT TO PURCH ASE 16
VIRTUAL CURRENCY .”; 17
(4) THE CONTACT INFORMATI ON FOR THE VIRTUAL C URRENCY KIOSK 18
OPERATOR, INCLUDING THE OPERAT OR’S NAME, PHONE NUMBER , ADDRESS, AND 19
HOURS OF OPERATION ; 20
(5) THE CURRENT EXCHANGE RATES FOR EACH TYPE OF VIRTUAL 21
CURRENCY ELIGIBLE TO BE SOLD OR PURCHASED AT THE VIRTUAL CURRE NCY 22
KIOSK; AND 23
(5) (6) ANY OTHER INFORMATION THAT THE COMMISSIONER 24
REQUIRES BY REGULATI ON. 25
(C) THE VIRTUAL CURRENCY OPERATOR SHALL ENSUR E THAT A PERSON 26
USING THE OPERATOR ’S VIRTUAL CURRENCY K IOSK IS REQUIRED TO 27
ACKNOWLEDGE AND ACCE PT EACH DISCLOSURE B EFORE THE PERSON MAY RECEIVE 28
VIRTUAL CURRENCY SERVICES . 29
(D) THE COMMISSIONER SHALL AD OPT REGULATIONS ESTA BLISHING THE 30
MINIMUM AMOUNT OF TI ME THAT EACH DISCLOS URE MUST REMAIN ON T HE SCREEN 31
BEFORE ADVANCING . 32
8 SENATE BILL 305
12–1206. 1
A VIRTUAL CURRENCY OPE RATOR SHALL MAINTAIN LIVE CUSTOMER 2
SUPPORT THAT , AT A MINIMUM, IS: 3
(1) REACHABLE BY TELEPHON E AT A TOLL–FREE NUMBER ; AND 4
(2) AVAILABLE MONDAY THROUGH FRIDAY BETWEEN 8 A.M. AND 6 5
P.M. 6
12–1207. 7
A VIRTUAL CURRENCY KIO SK OPERATOR SHALL EN SURE THAT THE VIRTUA L 8
CURRENCY KIOSK : 9
(1) OPERATES SOLELY FOR T HE PURPOSE OF VIRTUA L CURRENCY 10
SERVICES; AND 11
(2) DOES NOT OPERATE AS A N AUTOMATED TELLER M ACHINE AS 12
DEFINED UNDER § 1–401 OF THIS ARTICLE. 13
12–1208. 14
(A) THE COMMISSIONER MAY USE THE INVESTIGATIVE AN D ENFORCEMENT 15
POWERS UNDER §§ 2–113 THROUGH 2–116 OF THIS ARTICLE TO E NFORCE THIS 16
SUBTITLE. 17
(B) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , THE 18
COMMISSIONER MAY IMPO SE THE PENALTIES UND ER §§ 2–113 THROUGH 2–116 OF 19
THIS ARTICLE FOR A V IOLATION OF THIS SUB TITLE. 20
(2) THE COMMISSIONER MAY ASSE SS AGAINST A VIRTUAL CURRENCY 21
KIOSK OPERATOR A CIV IL PENALTY NOT EXCEE DING $1,000 FOR EACH KNOWING 22
AND WILLFUL VIOLATIO N OF THIS SUBTITLE . 23
(3) EACH DAY THAT A VIOLA TION OCCURS OR CONTI NUES IS A 24
SEPARATE VIOLATION . 25
12–1207. 12–1209. 26
THE COMMISSIONER MAY SHALL ADOPT REGULATIONS TO CARRY OUT THIS 27
SUBTITLE. 28
SENATE BILL 305 9
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1
1, 2025. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.