FIRST REGULAR SESSION
SENATE BILL NO. 779
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR TRENT.
2910S.01I KRISTINA MARTIN, Secretary
AN ACT
To amend chapter 361, RSMo, by adding thereto one new section relating to virtual currency.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Chapter 361, RSMo, is amended by adding thereto 1
one new section, to be known as section 361.1100, to read as 2
follows:3
361.1100. 1. This section shall be known and may be 1
cited as the "Virtual Currency Kiosk Consumer Protection 2
Act". 3
2. For purposes of this section, the following terms 4
and phrases mean: 5
(1) "Bank Secrecy Act", the federal Bank Secrecy Act, 6
31 U.S.C. Section 5311, et seq., and its implementing rules 7
and regulations, as amended and recodified from time to time; 8
(2) "Blockchain", a distributed digital ledger or 9
database that is chronological, consensus -based, 10
decentralized, and mathematically verified in nature; 11
(3) "Blockchain analytics", a software service that 12
uses data from various virtual currencies and their 13
applicable blockchains to provide a risk rating specif ic to 14
digital wallet addresses from users of virtual currency 15
kiosks; 16
(4) "Digital wallet", hardware or software that 17
enables individuals to store and use virtual currency; 18 SB 779 2
(5) "Digital wallet address", an alphanumeric 19
identifier representi ng a destination on a blockchain for a 20
virtual currency transfer that is associated with a digital 21
wallet; 22
(6) "Director", the director of the division; 23
(7) "Division", the division of finance within the 24
department of commerce and insurance; 25
(8) "Federal Deposit Insurance Corporation or 26
Securities Investor Protection Corporation", a bank, credit 27
union, savings and loan association, trust company, savings 28
association, savings bank, industrial bank, or industrial 29
loan company organize d under the laws of the United States 30
or any state of the United States, if the bank, credit 31
union, savings and loan association, trust company, savings 32
association, savings bank, industrial bank, or industrial 33
loan company has federally insured deposi ts; 34
(9) "Fiat currency", a medium of exchange that is 35
authorized or adopted by the United States government as 36
part of its currency and is not backed by a commodity; 37
(10) "Individual", a natural person; 38
(11) "NMLS", the Nationwide Multi state Licensing 39
System and Registry developed by the Conference of State 40
Bank Supervisors and the American Association of Residential 41
Mortgage Regulators and owned and operated by the State 42
Regulatory Registry, LLC, or any successor or affiliated 43
entity, for the licensing and registration of persons in 44
financial services industries; 45
(12) "United States PATRIOT Act", the federal Uniting 46
and Strengthening America by Providing Appropriate Tools 47
Required to Intercept and Obstruct Terrorism Act of 2001 and 48
its implementing rules and regulations, as amended and 49
recodified from time to time; 50 SB 779 3
(13) "Virtual currency", 51
(a) Any type of digital unit that is used as a medium 52
of exchange or a form of digitally stored value or that is 53
incorporated into payment system technology. Virtual 54
currency shall be construed to include digital units of 55
exchange that: 56
a. Have a centralized repository or administrator; 57
b. Are decentralized and have no centralized 58
repository or administrator; or 59
c. May be created or obtained by computing or 60
manufacturing effort; 61
(b) Virtual currency shall not be construed to include 62
digital units that are used: 63
a. Solely within online gaming platforms with no 64
market or application outside such gaming platforms; or 65
b. Exclusively as part of a consumer affinity or 66
rewards program, and can be applied solely as payment for 67
purchases with the issuer or other designated merchants, but 68
cannot be converted into or redeemed for fiat currenc y; 69
(14) "Virtual currency kiosk", an electronic terminal 70
of the virtual currency kiosk operator that enables the 71
owner or operator to facilitate the exchange of fiat 72
currency for virtual currency or virtual currency for fiat 73
currency or other vir tual currency, including, but not 74
limited to: 75
(a) Connecting directly to a separate virtual currency 76
exchange that performs the actual virtual currency 77
transmission; or 78
(b) Drawing upon the virtual currency in the 79
possession of the owner or operator of the electronic 80
terminal; 81 SB 779 4
(15) "Virtual currency kiosk operator", a corporation, 82
limited liability company, limited liability partnership, or 83
foreign entity qualified to do business in this state that 84
operates a virtual currency kiosk within this state. 85
3. (1) Except as otherwise provided in this section, 86
all information or reports obtained by the division from a 87
virtual currency kiosk operator, and all information 88
contained in or related to an examination, investigation, 89
operating report, or condition report prepared by, on behalf 90
of, or for the use of the division in relation to a virtual 91
currency kiosk operator, are confidential and are not 92
subject to disclosure under chapter 610. 93
(2) Information contained in the records of the 94
division that is not confidential and may be available to 95
the public either on the division's website, upon receipt by 96
the division of a written request, or in NMLS shall include: 97
(a) The name, business address, telephone number, an d 98
unique identifier of a virtual currency kiosk operator; 99
(b) The business address of a virtual currency kiosk 100
operator's registered agent for service; and 101
(c) Copies of any final orders of the division 102
relating to any violation of this sect ion or regulations 103
implementing this section. 104
4. If any provision of this section is inconsistent 105
with any federal law, including but not limited to the Bank 106
Secrecy Act or the United States PATRIOT Act, the applicable 107
federal law shall govern to the extent of any inconsistency. 108
5. (1) The director may request evidence of 109
compliance with this section or a rule adopted or order 110
issued pursuant to this section as reasonably necessary or 111
appropriate to administer and enforce this section, a nd 112 SB 779 5
other applicable law, including the Bank Secrecy Act and the 113
United States PATRIOT Act. 114
(2) A virtual currency kiosk operator shall provide 115
the director all records the director may reasonably require 116
to ensure compliance with this section. 117
6. As part of establishing a relationship with a 118
customer, and prior to entering into an initial transaction 119
for, on behalf of, or with such customer, each virtual 120
currency kiosk operator shall disclose in clear, 121
conspicuous, and legible writing in the English language, 122
whether in accessible terms of service or elsewhere, all 123
material risks associated with its products, services, and 124
activities and virtual currency generally, including 125
disclosures substantially similar to the following: 126
(1) Virtual currency is not legal tender, is not 127
backed by the government, and accounts and value balances 128
are not subject to Federal Deposit Insurance Corporation or 129
Securities Investor Protection Corporation protections; 130
(2) Legislative and regula tory changes or actions at 131
the state, federal, or international level may adversely 132
affect the use, transfer, exchange, and value of virtual 133
currency; 134
(3) Transactions in virtual currency may be 135
irreversible, and, accordingly, losses due to fraud ulent or 136
accidental transactions may not be recoverable; 137
(4) Some virtual currency transactions shall be deemed 138
to be made when recorded on a public ledger, which is not 139
necessarily the date or time that the customer initiates the 140
transaction; 141
(5) The value of virtual currency may be derived from 142
the continued willingness of market participants to exchange 143
fiat currency for virtual currency, which may result in the 144 SB 779 6
potential for permanent and total loss of value of a 145
particular virtual c urrency should the market for that 146
virtual currency disappear; 147
(6) There is no assurance that a person who accepts a 148
virtual currency as payment today will continue to do so in 149
the future; 150
(7) The volatility and unpredictability of the price 151
of virtual currency relative to fiat currency may result in 152
significant loss over a short period of time; 153
(8) The nature of virtual currency may lead to an 154
increased risk of fraud or cyber attack; 155
(9) The nature of virtual currency means th at any 156
technological difficulties experienced by the virtual 157
currency kiosk operator may prevent the access or use of a 158
customer's virtual currency; and 159
(10) Any bond or trust account maintained by the 160
virtual currency kiosk operator for the bene fit of its 161
customers may not be sufficient to cover all losses incurred 162
by customers. 163
7. When opening an account for a new customer, and 164
prior to entering into an initial transaction for, on behalf 165
of, or with such customer, each virtual currency kiosk 166
operator shall disclose in clear, conspicuous, and legible 167
writing in the English language, whether in accessible terms 168
of service or elsewhere, all relevant terms and conditions 169
associated with its products, services, and activities and 170
virtual currency generally, including disclosures 171
substantially similar to the following: 172
(1) The customer's liability for unauthorized virtual 173
currency transactions; 174
(2) Under what circumstances the virtual currency 175
kiosk operator will, absent a court or government order, 176 SB 779 7
disclose information concerning the customer's account to 177
third parties; 178
(3) The customer's right to receive periodic account 179
statements and valuations from the virtual currency kiosk 180
operator; 181
(4) The customer's right to receive a receipt, trade 182
ticket, or other evidence of a transaction; 183
(5) The customer's right to prior notice of a change 184
in the virtual currency kiosk operator's rules or policies; 185
and 186
(6) Such other disclosures as are customarily given in 187
connection with the opening of customer accounts. 188
8. Prior to entering into a virtual currency 189
transaction with a customer, each virtual currency kiosk 190
operator shall ensure a warning is disclosed to a customer 191
substantially similar to t he following: 192
9. Upon completion of any virtual currency kiosk 208
transaction, each virtual currency kiosk operator shall 209
193 Customer Notice. Please Read Carefully.
194
195
196
197
198
Did you receive a phone call from your bank,
software provider, the police, or were you
directed to make a payment for Social Security,
utility bill, investment, warrants, or bail money
at this kiosk? STOP
199
200
Is anyone on the phone pressuring you to make a
payment of any kind? STOP
201
202
203
I understand that the purchase and sale of
cryptocurrency is a final irreversible and non -
refundable transaction.
204
205
206
207
I confirm I am sending funds to a wallet I own or
directly have control over. I confirm that I am
using funds gained from my own initiative to make
my transaction.
SB 779 8
provide to a customer a digital or physical receipt 210
containing the following information: 211
(1) The name and contact information of the virtual 212
currency kiosk operator, including a telephone number 213
established by the virtual currency kiosk operator to answer 214
questions and register complaints; 215
(2) The type, value, date, and precise time of the 216
transaction in the local time zone; 217
(3) The fee charged; 218
(4) The exchange rate, if applicable; 219
(5) A statement of the liability of the virtual 220
currency kiosk operator for non -delivery or delayed 221
delivery; and 222
(6) A statement of the refund policy of the virtual 223
currency kiosk operator. 224
10. All virtual currency kiosk operators shall use 225
blockchain analytics software to assist in the prevention of 226
sending purchased virtual currency from a virtual currency 227
kiosk operator to a digital wallet known to be affiliated 228
with fraudulent activity at the time of a transaction. The 229
division may request evidence from any virtual currency 230
kiosk operator of current use of blockchain analytics. 231
11. All virtual currency kiosk operators performing 232
business in this state shall provide live customer service 233
at a minimum on Monday through Fri day between the hours of 234
8:00 a.m. and 10:00 p.m. The customer service toll -free 235
number shall be displayed on the virtual currency kiosk or 236
the virtual currency kiosk screens. 237
12. All virtual currency kiosk operators shall take 238
reasonable steps to detect and prevent fraud, including 239
establishing and maintaining a written anti -fraud policy. 240
The anti-fraud policy shall, at a minimum, include: 241 SB 779 9
(1) The identification and assessment of fraud -related 242
risk areas; 243
(2) Procedures and contr ols to protect against 244
identified risks; 245
(3) Allocation of responsibility for monitoring risks; 246
and 247
(4) Procedures for the periodic evaluation and 248
revision of the anti -fraud procedures, controls, and 249
monitoring mechanisms. 250
13. (1) Each virtual currency kiosk operator shall 251
maintain, implement, and enforce a written "Enhanced Due 252
Diligence Policy". Such a policy shall be reviewed and 253
approved by the virtual currency kiosk operator's board of 254
directors or an equivalent governing bo dy of the virtual 255
currency kiosk operator. 256
(2) The "Enhanced Due Diligence Policy" shall 257
identify, at minimum, individuals who are at risk of fraud 258
based on age or mental capacity. 259
14. (1) Each virtual currency kiosk operator shall 260
comply with the provisions of this section, any lawful 261
order, rule, or regulation made or issued under the 262
provisions of this section, and all applicable federal and 263
state laws, rules, and regulations. 264
(2) Each virtual currency kiosk shall maintain, 265
implement, and enforce written compliance policies and 266
procedures. Such policies and procedures shall be reviewed 267
and approved by the virtual currency kiosk operator's board 268
of directors or an equivalent governing body of the virtual 269
currency kiosk opera tor. 270
15. (1) Each virtual currency kiosk operator shall 271
designate and employ a compliance officer with the following 272
requirements: 273 SB 779 10
(a) The individual shall be qualified to coordinate 274
and monitor compliance with this section and all other 275
applicable federal and state laws, rules, and regulations; 276
(b) The individual shall be employed full -time by the 277
virtual currency kiosk operator; and 278
(c) The designated compliance officer cannot be any 279
individual who owns more than twenty perc ent of the virtual 280
currency kiosk operator by whom the individual is employed. 281
(2) Compliance responsibilities required under federal 282
and state laws, rules, and regulations shall be completed by 283
full-time employees of the virtual currency kiosk op erator. 284
16. Each virtual currency kiosk operator shall 285
designate and employ a consumer protection officer with each 286
of the following requirements: 287
(1) The individual shall be qualified to coordinate 288
and monitor compliance with this section a nd all other 289
applicable federal and state laws, rules, and regulations; 290
(2) The individual shall be employed full -time by the 291
virtual currency kiosk operators; and 292
(3) The designated consumer protection officer cannot 293
be an individual who ow ns more than twenty percent of the 294
virtual currency kiosk operator by whom the individual is 295
employed. 296
17. (1) Each virtual currency kiosk operator shall 297
submit a report to the division of the location of each 298
virtual currency kiosk located with in this state within 299
forty-five days of the end of the calendar quarter. The 300
director shall formulate a system for virtual currency kiosk 301
operators to submit such locations that is consistent with 302
the requirements of this section. 303 SB 779 11
(2) The location report shall include, at a minimum, 304
the following information regarding the location where a 305
virtual currency kiosk is located: 306
(a) Company legal name; 307
(b) Any fictitious or trade name; 308
(c) Physical address; 309
(d) Start date of operation of virtual currency kiosk 310
at location; and 311
(e) End date of operation of virtual currency kiosk at 312
location, if applicable. 313
18. (1) Any virtual currency kiosk operator who owns, 314
operates, solicits, markets, advertises, or facilitate s 315
virtual currency kiosks in this state shall be deemed to be 316
engaged in money transmission and require licensure pursuant 317
to sections 361.900 to 361.1035. 318
(2) All unlicensed virtual currency kiosk operators 319
shall apply for a money transmitter li cense within sixty 320
days after this section goes into effect. Virtual currency 321
kiosk operators who apply within this time will be allowed 322
to continue operations while the division reviews the 323
application. Any virtual currency kiosk operators whose 324
application is denied by the division shall cease operations 325
until granted a money transmitter license. 326
19. The division of finance may promulgate rules for 327
the purpose of implementing the provisions of this section. 328
Any rule or portion of a rule, as that term is defined in 329
section 536.010, that is created under the authority 330
delegated in this section shall become effective only if it 331
complies with and is subject to all of the provisions of 332
chapter 536 and, if applicable, section 536.028. This 333
section and chapter 536 are nonseverable and if any of the 334
powers vested with the general assembly pursuant to chapter 335 SB 779 12
536 to review, to delay the effective date, or to disapprove 336
and annul a rule are subsequently held unconstitutional, 337
then the grant of rulemaking authority and any rule proposed 338
or adopted after August 28, 2025, shall be invalid and void. 339