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S T A T E O F R H O D E I S L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2025
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A N A C T
RELATING TO FINANCIAL INSTITUTIONS -- CURRENCY TRANSMISSIONS
Introduced By: Representatives Casimiro, Noret, Read, Carson, O'Brien, Bennett, Serpa,
Voas, Kazarian, and Alzate
Date Introduced: January 22, 2025
Referred To: House Innovation, Internet, & Technology
It is enacted by the General Assembly as follows:
SECTION 1. Section 19-14.3-1.1 of the General Laws in Chapter 19-14.3 entitled 1
"Currency Transmissions" is hereby amended to read as follows: 2
19-14.3-1.1. Definitions. 3
In addition to the definitions provided in § 19-14-1 the following definitions are applicable 4
to this chapter: 5
(1) "Blockchain analytics" means the analysis of data from blockchains or public 6
distributed ledgers, including associated transaction information. 7
(2) "Blockchain analytics software" means a software service that uses blockchain 8
analytics data to provide risk-specific information about virtual currency wallet addresses, among 9
other things. 10
(1)(3) “Control” means: 11
(i) When used in reference to a transaction or relationship involving virtual currency, the 12
power to execute unilaterally or prevent indefinitely a virtual currency transaction; and 13
(ii) When used in reference to a person, the direct or indirect power to direct the 14
management, operations, or policies of the person through legal or beneficial ownership of twenty-15
five percent (25%) or more of the voting power in the person or under a contract, arrangement, or 16
understanding. 17
(2)(4) “Department” means the department of business regulation, division of banking. 18
(3)(5) “Exchange,” used as a verb, means to assume control of virtual currency from or on 19
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behalf of a resident, at least momentarily, to sell, trade, or convert: 1
(i) Virtual currency for legal tender, bank credit, or one or more forms of virtual currency; 2
or 3
(ii) Legal tender or bank credit for one or more forms of virtual currency. 4
(4)(6) "Existing customer" means an individual who has been a customer with a virtual 5
currency kiosk operator for more than thirty (30) days after the customer's first financial transaction 6
with the virtual currency kiosk operator. 7
(7) “Legal tender” means a medium of exchange or unit of value, including the coin or 8
paper money of the United States, issued by the United States or by another government. 9
(5)(8) “Licensee” means a person licensed under this chapter. 10
(6)(9) “Monetary value” means a medium of exchange, whether or not redeemable in 11
money. 12
(10) "New customer" means an individual who has never previously transacted with the 13
virtual currency kiosk operator. The new customer shall remain defined as such during the thirty 14
(30) day period after the first financial transaction with the virtual currency kiosk operator. 15
Following the thirty (30) day period, a new customer automatically converts to an existing 16
customer. 17
(7)(11) “Reciprocity agreement” means an arrangement between the department and the 18
appropriate licensing agency of another state that permits a licensee operating under a license 19
granted by the other state to engage in currency transmission business activity with or on behalf of 20
a resident. 21
(8)(12) “Record” means information that is inscribed on a tangible medium or that is stored 22
in an electronic or other medium and is retrievable in perceivable form. 23
(9)(13) “Registry” means the Nationwide Multistate Licensing System. 24
(10)(14) “Resident”: 25
(i) Means a person that: 26
(A) Is domiciled in this state; 27
(B) Is physically located in this state for more than one hundred eighty-three (183) days of 28
the previous three hundred sixty-five (365) days; or 29
(C) Has a place of business in this state; and 30
(ii) Includes a legal representative of a person that satisfies subsection (10)(i) of this 31
section. 32
(11)(15) “Responsible individual” means an individual who has managerial authority with 33
respect to a licensee’s currency transmission business activity with or on behalf of a resident. 34
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(12)(16) “Sign” means, with present intent to authenticate or adopt a record: 1
(i) To execute or adopt a tangible symbol; or 2
(ii) To attach to or logically associate with the record an electronic symbol, sound, or 3
process. 4
(13)(17) “State” means a state of the United States, the District of Columbia, Puerto Rico, 5
the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of 6
the United States. 7
(14)(18) “Store,” except in the phrase “store of value,” means to maintain control of virtual 8
currency on behalf of a resident by a person other than the resident. “Storage” and “storing” have 9
corresponding meanings. 10
(19) "Transaction hash" means a unique identifier made up of a string of characters that act 11
as a record of and provide proof that the transaction was verified and added to the blockchain. 12
(15)(20) “Transfer” means to assume control of virtual currency from or on behalf of a 13
resident and to: 14
(i) Credit the virtual currency to the account of another person; 15
(ii) Move the virtual currency from one account of a resident to another account of the 16
same resident; or 17
(iii) Relinquish control of virtual currency to another person. 18
(16)(21) “U.S. Dollar equivalent of virtual currency” means the equivalent value of a 19
particular virtual currency in United States dollars shown on a virtual currency exchange based in 20
the United States for a particular date or period specified in this chapter. 21
(22) "Virtual currency address" means an alphanumeric identifier associated with a virtual 22
currency wallet identifying the location to which a virtual currency transaction can be sent. 23
(17)(23) “Virtual currency business activity” means: 24
(i) Exchanging, transferring, or storing virtual currency whether directly or through an 25
agreement with a virtual currency control-services vendor; 26
(ii) Holding electronic precious metals or electronic certificates representing interests in 27
precious metals on behalf of another person or issuing shares or electronic certificates representing 28
interests in precious metals; or 29
(iii) Exchanging one or more digital representations of value used within one or more 30
online games, game platforms, or family of games for: 31
(A) Virtual currency offered by or on behalf of the same publisher from which the original 32
digital representation of value was received; or 33
(B) Legal tender or bank credit outside the online game, game platform, or family of games 34
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offered by or on behalf of the same publisher from which the original digital representation of value 1
was received. 2
(18)(24) “Virtual currency control-services vendor” means a person who has control of 3
virtual currency solely under an agreement with a person who, on behalf of another person, assumes 4
control of virtual currency. 5
(25) "Virtual currency kiosk" or "kiosk" means an electronic terminal acting as a 6
mechanical agent of the virtual currency kiosk operator that enables the virtual currency kiosk 7
operator to facilitate the exchange of virtual currency for money, bank credit, or other virtual 8
currency including, but not limited to: 9
(i) Connecting directly to a separate "virtual currency exchange" that performs the actual 10
virtual currency transmission; or 11
(ii) Drawing upon the virtual currency in the possession of the electronic terminal's 12
operator. 13
(26) "Virtual currency kiosk transaction" means a transaction conducted or performed, in 14
whole or in part, by electronic means via a virtual currency kiosk. Virtual currency kiosk transaction 15
also means a transaction made at a virtual currency kiosk to purchase virtual currency with fiat 16
currency or to sell virtual currency for fiat currency. 17
(27) "Virtual currency wallet" means a software application or other mechanism providing 18
a means for holding, storing and transferring virtual currency. 19
(28) "Virtual-currency kiosk operator" means a person or business entity that engages in 20
virtual-currency business activity via a virtual currency kiosk located in this state or a person that 21
owns, operates, or manages a virtual currency kiosk located in this state through which virtual 22
currency business activity is offered. 23
SECTION 2. Chapter 19-14.3 of the General Laws entitled "Currency Transmissions" is 24
hereby amended by adding thereto the following sections: 25
19-14.3-3.9. Virtual currency kiosk operator licensing and kiosk registration. 26
(a) A virtual currency kiosk operator shall not engage in virtual currency business activity 27
or hold itself out as being able to engage in virtual currency business activity with or on behalf of 28
another person unless the virtual currency kiosk operator is licensed in the state as a money 29
transmitter. 30
(b) A virtual currency kiosk operator shall not locate, or allow a third party to locate, a 31
virtual currency kiosk in this state unless the virtual currency kiosk operator registers the virtual 32
currency kiosk and obtains the prior approval of the department of business regulation (DBR) for 33
its activation. 34
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(c) A virtual currency kiosk operator shall submit to the DBR a quarterly report of the 1
location of each virtual currency kiosk located within the State of Rhode Island within forty-five 2
(45) days of the end of each calendar quarter. The report shall include, at a minimum, the following: 3
(1) The virtual currency kiosk operator's legal name; 4
(2) Any fictitious or trade name of the virtual currency kiosk operator; 5
(3) Physical address of each virtual currency kiosk; 6
(4) Start date of operation of each virtual currency kiosk at the location; 7
(5) End date of operation of each virtual currency kiosk at the location, if applicable; and 8
(6) Virtual currency address(es) associated with each virtual currency kiosk. 9
19-14.3-3.10. Disclosures. 10
A virtual currency kiosk operator shall disclose in a clear, conspicuous, and easily readable 11
manner in a chosen language made available to and preferred by the customer, all relevant terms 12
and conditions generally associated with the products, services, and activities of the virtual currency 13
kiosk operator and virtual currency. 14
(1) The virtual currency kiosk operator shall provide an acknowledgement of receipt of all 15
disclosures required under this section to be acknowledged by the customer as confirmation of 16
consent. 17
(2) The disclosures under this subsection shall include, at a minimum, the following 18
provisions: 19
(i) A warning, written prominently and in bold type, and provided separately from the 20
disclosures below, stating: "WARNING: LOSSES DUE TO FRAUDULENT OR ACCIDENTAL 21
TRANSACTIONS ARE NOT RECOVERABLE AND TRANSACTIONS IN VIRTUAL 22
CURRENCY ARE IRREVERSIBLE. VIRTUAL CURRENCY TRANSACT IONS MAY BE 23
USED TO STEAL YOUR MONEY BY CRIMINALS IMPERSONATING THE 24
GOVERNMENT, ORGANIZATIONS, OR YOUR LOVED ONES. WRONGDOERS OFTEN 25
THREATEN JAIL TIME, SAY YOUR IDENTITY HAS BEEN STOLEN, ALLEGE YOUR 26
COMPUTER HAS BEEN HACKED, INSIST YOU WITHDRAW MONEY FROM YOUR 27
BANK ACCOUNT TO PURCHASE VIRTUAL CURRENCY, OR UTILIZE A NUMBER OF 28
OTHER ILLEGAL MEANS TO SCAM YOU . IF YOU BELIEVE YOU ARE BEING 29
SCAMMED, CALL YOUR LOCAL LAW ENFORCEMENT." 30
(ii) A written statement disclosing the material risks associated with virtual currency and 31
virtual currency transactions, including: 32
(A) A warning that once completed, the transaction may not be reversed; 33
(B) A disclosure relating to the virtual currency kiosk operator’s liability for unauthorized 34
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virtual currency transactions; 1
(C) A disclosure relating to the virtual currency kiosk customer’s liability for unauthorized 2
currency transactions; 3
(D) A statement that virtual currency is not legal tender, backed or insured by the 4
government, and accounts and value balances are not subject to Federal Deposit Insurance 5
Corporation, National Credit Union Administration, or Securities Investor Protection Corporation 6
protections; 7
(E) A statement that some virtual currency transactions are deemed to be made when 8
recorded on a public ledger which may not be the date or time when the person initiates the 9
transaction; 10
(F) A statement that virtual currency value may be derived from market participants' 11
continued willingness to exchange fiat currency for virtual currency, which may result in the 12
permanent and total loss of a particular virtual currency's value if the market for virtual currency 13
disappears; 14
(G) A statement that a person who accepts virtual currency as payment today is not required 15
to accept and might not accept virtual currency in the future; 16
(H) A statement that the volatility and unpredictability of the price of virtual currency 17
relative to fiat currency may result in a significant loss over a short period of time; 18
(I) A statement that the nature of virtual currency means that any technological difficulties 19
experienced by virtual currency kiosk operators may prevent access to or use of a person's virtual 20
currency; and 21
(J) A disclosure that any bond maintained by the virtual currency kiosk operator for the 22
benefit of a person may not cover all losses a person incurs. 23
(iii) A statement disclosing the amount of the transaction denominated in U.S. Dollars as 24
well as the applicable virtual currency; 25
(iv) A disclosure of any fees or expenses charged by the virtual currency kiosk operator; 26
(v) A disclosure of any applicable exchange rates; 27
(vi) Notice of a change in the virtual currency kiosk operator's rules or policies; 28
(vii) The name, address, and telephone number of the owner of the kiosk and the days, 29
times and means by which a consumer can contact the owner for consumer assistance shall be 30
displayed on or at the location of the kiosk, or on the first screen of such kiosk; 31
(viii) A disclosure of the circumstances under which the virtual currency kiosk operator, 32
without a court or government order, discloses a person's account information to third parties; and 33
(ix) Other disclosures that are customarily given in connection with a virtual currency 34
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transaction. 1
(3) Transaction receipt. Effective November 1, 2025, upon each transaction's completion, 2
the virtual currency kiosk operator shall provide a person with a physical receipt in a chosen 3
language made available to and preferred by the customer which shall contain the following 4
information: 5
(i) The virtual currency kiosk operator's name and contact information, including a 6
telephone number to answer questions and register complaints; 7
(ii) The type, value, date, and precise time of the transaction, transaction hash, and each 8
applicable virtual currency address; 9
(iii) The name and contact information of the sender; 10
(iv) The name and contact information of the designated recipient; 11
(v) All fees charged; 12
(vi) The exchange rate of the virtual currency to U.S. Dollars; 13
(vii) A statement of the virtual currency kiosk operator's liability for non-delivery or 14
delayed delivery; 15
(viii) A statement of the virtual currency kiosk operator's refund policy; and, 16
(ix) Any additional information or formatting the department of business regulation may 17
require. 18
19-14.3-3.11. Prevention of fraudulent activity. 19
All virtual currency kiosk operators shall use blockchain analytics software to assist in the 20
prevention of sending purchased virtual currency from a virtual currency kiosk operator to a virtual 21
currency wallet known to be affiliated with fraudulent activity at the time of a transaction. The 22
department of business regulation may request evidence from a virtual currency kiosk operator 23
relating to its current use of blockchain analytics. 24
(1) All virtual currency kiosk operators shall take reasonable steps to detect and prevent 25
fraud, including establishing and maintaining a written anti-fraud policy. The anti-fraud policy 26
shall, at a minimum, include: 27
(i) The identification and assessment of fraud related risk areas; 28
(ii) Procedures and controls to protect against identified risks; 29
(iii) Allocation of responsibility for monitoring risks; and 30
(iv) Procedures for the periodic evaluation and revision of anti-fraud procedures, controls, 31
and monitoring mechanisms. 32
(2) Each virtual currency kiosk operator shall designate and employ a compliance officer 33
in accordance with the following requirements: 34
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(i) The compliance officer shall be qualified to coordinate and monitor compliance with 1
any virtual currency business activity transacted in this state pursuant to this chapter and all other 2
applicable federal and state laws, rules, and regulations; 3
(ii) The compliance officer shall be employed full-time by the virtual currency kiosk 4
operator; and 5
(iii) The compliance officer shall not be an individual who owns more than a twenty percent 6
(20%) interest of the virtual currency kiosk operator by whom the individual is employed. 7
(3) Upon request of the customer, a virtual currency kiosk operator shall issue a refund to 8
a new customer for the full amount of all transactions made within the thirty (30) day new customer 9
time period as provided in the definition of "new customer" in § 19-14.3-1.1. In order to receive a 10
refund under this subsection, a new customer shall have been fraudulently induced to engage in the 11
virtual currency transaction(s) and shall contact the virtual currency kiosk operator and a 12
government or law enforcement agency to inform them of the fraudulent nature of the transaction(s) 13
within ninety (90) days of the last transaction to occur during the thirty (30) day new customer time 14
period. 15
(4) A virtual currency kiosk operator shall issue a refund to an existing customer for the 16
full amount of all transaction fees upon the request of an existing customer. In order to receive a 17
refund under this subsection, an existing customer shall have been fraudulently induced to engage 18
in the virtual currency transaction(s) and shall contact the virtual currency kiosk operator and a 19
government or law enforcement agency to inform them of the fraudulent nature of the transaction(s) 20
within ninety (90) days of each transaction. 21
19-14.3-3.12. Daily transaction limit for new and existing customers. 22
(a) For new customers a virtual currency kiosk operator shall not accept transactions of 23
more than two thousand U.S. dollars ($2,000) a day of cash or the equivalent. 24
(b) For existing customers, a virtual currency kiosk operator shall not accept transactions 25
of more than five thousand U.S. dollars ($5,000) a day of cash or the equivalent. 26
(c) The limits imposed by this section apply to a single customer without regard to the 27
number of virtual currency kiosks utilized in the state. 28
19-14.3-3.13. Customer service. 29
All virtual currency kiosk operators performing business in the state shall provide live 30
customer service, at a minimum, Monday through Friday between 8:00 AM EST and 10:00 PM 31
EST. The customer service toll free number shall be displayed on the virtual currency kiosk or the 32
virtual currency kiosk screen. 33
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SECTION 3. This act shall take effect upon passage. 1
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO FINANCIAL INSTITUTIONS -- CURRENCY TRANSMISSIONS
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This act would create a process for the licensure and oversight by the department of 1
business regulation over the practices and procedures of virtual currency kiosk operators to prevent 2
fraud related to the use of virtual currency kiosks, by establishing daily transaction limits and the 3
regulating of fees. 4
This act would take effect upon passage. 5
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