RI
Rhode Island House Bill H5121

Rhode Island 2025 Regular Session

Rhode Island House Bill H5121 Compare Versions

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99 S T A T E O F R H O D E I S L A N D
1010 IN GENERAL ASSEMBLY
1111 JANUARY SESSION, A.D. 2025
1212 ____________
1313
1414 A N A C T
1515 RELATING TO FINANCIAL INSTITUTIONS -- CURRENCY TRANSMISSIO NS
1616 Introduced By: Representatives Casimiro, Noret, Read, Carson, O'Brien, Bennett, Serpa,
1717 Voas, Kazarian, and Alzate
1818 Date Introduced: January 22, 2025
1919 Referred To: House Innovation, Internet, & Technology
2020
2121
2222 It is enacted by the General Assembly as follows:
2323 SECTION 1. Section 19-14.3-1.1 of the General Laws in Chapter 19-14.3 entitled 1
2424 "Currency Transmissions" is hereby amended to read as follows: 2
2525 19-14.3-1.1. Definitions. 3
2626 In addition to the definitions provided in § 19-14-1 the following definitions are applicable 4
2727 to this chapter: 5
2828 (1) "Blockchain analytics" means the analysis of data from blockchains or public 6
2929 distributed ledgers, including associated transaction information. 7
3030 (2) "Blockchain analytics software" means a software service that uses blockchain 8
3131 analytics data to provide risk-specific information about virtual currency wallet addresses, among 9
3232 other things. 10
3333 (1)(3) “Control” means: 11
3434 (i) When used in reference to a transaction or relationship involving virtual currency, the 12
3535 power to execute unilaterally or prevent indefinitely a virtual currency transaction; and 13
3636 (ii) When used in reference to a person, the direct or indirect power to direct the 14
3737 management, operations, or policies of the person through legal or beneficial ownership of twenty-15
3838 five percent (25%) or more of the voting power in the person or under a contract, arrangement, or 16
3939 understanding. 17
4040 (2)(4) “Department” means the department of business regulation, division of banking. 18
4141 (3)(5) “Exchange,” used as a verb, means to assume control of virtual currency from or on 19
4242
4343
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4545 behalf of a resident, at least momentarily, to sell, trade, or convert: 1
4646 (i) Virtual currency for legal tender, bank credit, or one or more forms of virtual currency; 2
4747 or 3
4848 (ii) Legal tender or bank credit for one or more forms of virtual currency. 4
49-(4)(6) "Existing customer" means an individual who has been a customer with a virtual 5
50-currency kiosk operator for more than thirty (30) days after the customer's first financial transaction 6
51-with the virtual currency kiosk operator. 7
52-(7) “Legal tender” means a medium of exchange or unit of value, including the coin or 8
53-paper money of the United States, issued by the United States or by another government. 9
54-(5)(8) “Licensee” means a person licensed under this chapter. 10
55-(6)(9) “Monetary value” means a medium of exchange, whether or not redeemable in 11
56-money. 12
57-(10) "New customer" means an individual who has never previously transacted with the 13
58-virtual currency kiosk operator. The new customer shall remain defined as such during the thirty 14
59-(30) day period after the first financial transaction with the virtual currency kiosk operator. 15
60-Following the thirty (30) day period, a new customer automatically converts to an existing 16
61-customer. 17
62-(7)(11) “Reciprocity agreement” means an arrangement between the department and the 18
63-appropriate licensing agency of another state that permits a licensee operating under a license 19
64-granted by the other state to engage in currency transmission business activity with or on behalf of 20
65-a resident. 21
66-(8)(12) “Record” means information that is inscribed on a tangible medium or that is stored 22
67-in an electronic or other medium and is retrievable in perceivable form. 23
68-(9)(13) “Registry” means the Nationwide Multistate Licensing System. 24
69-(10)(14) “Resident”: 25
70-(i) Means a person that: 26
71-(A) Is domiciled in this state; 27
72-(B) Is physically located in this state for more than one hundred eighty-three (183) days of 28
73-the previous three hundred sixty-five (365) days; or 29
74-(C) Has a place of business in this state; and 30
75-(ii) Includes a legal representative of a person that satisfies subsection (10)(i) of this 31
76-section. 32
77-(11)(15) “Responsible individual” means an individual who has managerial authority with 33
78-respect to a licensee’s currency transmission business activity with or on behalf of a resident. 34
49+(4)(6) “Legal tender” means a medium of exchange or unit of value, including the coin or 5
50+paper money of the United States, issued by the United States or by another government. 6
51+(5)(7) “Licensee” means a person licensed under this chapter. 7
52+(6)(8) “Monetary value” means a medium of exchange, whether or not redeemable in 8
53+money. 9
54+(9) "New customer" means an individual who has never previously transacted with the 10
55+virtual currency kiosk operator. The new customer shall remain defined as such during the thirty 11
56+(30) day period after the first financial transaction with the virtual currency kiosk operator. 12
57+(7)(10) “Reciprocity agreement” means an arrangement between the department and the 13
58+appropriate licensing agency of another state that permits a licensee operating under a license 14
59+granted by the other state to engage in currency transmission business activity with or on behalf of 15
60+a resident. 16
61+(8)(11) “Record” means information that is inscribed on a tangible medium or that is stored 17
62+in an electronic or other medium and is retrievable in perceivable form. 18
63+(9)(12) “Registry” means the Nationwide Multistate Licensing System. 19
64+(10)(13) “Resident”: 20
65+(i) Means a person that: 21
66+(A) Is domiciled in this state; 22
67+(B) Is physically located in this state for more than one hundred eighty-three (183) days of 23
68+the previous three hundred sixty-five (365) days; or 24
69+(C) Has a place of business in this state; and 25
70+(ii) Includes a legal representative of a person that satisfies subsection (10)(i) of this 26
71+section. 27
72+(11)(14) “Responsible individual” means an individual who has managerial authority with 28
73+respect to a licensee’s currency transmission business activity with or on behalf of a resident. 29
74+(12)(15) “Sign” means, with present intent to authenticate or adopt a record: 30
75+(i) To execute or adopt a tangible symbol; or 31
76+(ii) To attach to or logically associate with the record an electronic symbol, sound, or 32
77+process. 33
78+(13)(16) “State” means a state of the United States, the District of Columbia, Puerto Rico, 34
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82-(12)(16) “Sign” means, with present intent to authenticate or adopt a record: 1
83-(i) To execute or adopt a tangible symbol; or 2
84-(ii) To attach to or logically associate with the record an electronic symbol, sound, or 3
85-process. 4
86-(13)(17) “State” means a state of the United States, the District of Columbia, Puerto Rico, 5
87-the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of 6
88-the United States. 7
89-(14)(18) “Store,” except in the phrase “store of value,” means to maintain control of virtual 8
90-currency on behalf of a resident by a person other than the resident. “Storage” and “storing” have 9
91-corresponding meanings. 10
92-(19) "Transaction hash" means a unique identifier made up of a string of characters that act 11
93-as a record of and provide proof that the transaction was verified and added to the blockchain. 12
94-(15)(20) “Transfer” means to assume control of virtual currency from or on behalf of a 13
95-resident and to: 14
96-(i) Credit the virtual currency to the account of another person; 15
97-(ii) Move the virtual currency from one account of a resident to another account of the 16
98-same resident; or 17
99-(iii) Relinquish control of virtual currency to another person. 18
100-(16)(21) “U.S. Dollar equivalent of virtual currency” means the equivalent value of a 19
101-particular virtual currency in United States dollars shown on a virtual currency exchange based in 20
102-the United States for a particular date or period specified in this chapter. 21
103-(22) "Virtual currency address" means an alphanumeric identifier associated with a virtual 22
104-currency wallet identifying the location to which a virtual currency transaction can be sent. 23
105-(17)(23) “Virtual currency business activity” means: 24
106-(i) Exchanging, transferring, or storing virtual currency whether directly or through an 25
107-agreement with a virtual currency control-services vendor; 26
108-(ii) Holding electronic precious metals or electronic certificates representing interests in 27
109-precious metals on behalf of another person or issuing shares or electronic certificates representing 28
110-interests in precious metals; or 29
111-(iii) Exchanging one or more digital representations of value used within one or more 30
112-online games, game platforms, or family of games for: 31
113-(A) Virtual currency offered by or on behalf of the same publisher from which the original 32
114-digital representation of value was received; or 33
115-(B) Legal tender or bank credit outside the online game, game platform, or family of games 34
81+LC000155 - Page 3 of 9
82+the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of 1
83+the United States. 2
84+(14)(17) “Store,” except in the phrase “store of value,” means to maintain control of virtual 3
85+currency on behalf of a resident by a person other than the resident. “Storage” and “storing” have 4
86+corresponding meanings. 5
87+(18) "Transaction hash" means a unique identifier made up of a string of characters that act 6
88+as a record of and provide proof that the transaction was verified and added to the blockchain. 7
89+(15)(19) “Transfer” means to assume control of virtual currency from or on behalf of a 8
90+resident and to: 9
91+(i) Credit the virtual currency to the account of another person; 10
92+(ii) Move the virtual currency from one account of a resident to another account of the 11
93+same resident; or 12
94+(iii) Relinquish control of virtual currency to another person. 13
95+(16)(20) “U.S. Dollar equivalent of virtual currency” means the equivalent value of a 14
96+particular virtual currency in United States dollars shown on a virtual currency exchange based in 15
97+the United States for a particular date or period specified in this chapter. 16
98+(21) "Virtual currency address" means an alphanumeric identifier associated with a virtual 17
99+currency wallet identifying the location to which a virtual currency transaction can be sent. 18
100+(17)(22) “Virtual currency business activity” means: 19
101+(i) Exchanging, transferring, or storing virtual currency whether directly or through an 20
102+agreement with a virtual currency control-services vendor; 21
103+(ii) Holding electronic precious metals or electronic certificates representing interests in 22
104+precious metals on behalf of another person or issuing shares or electronic certificates representing 23
105+interests in precious metals; or 24
106+(iii) Exchanging one or more digital representations of value used within one or more 25
107+online games, game platforms, or family of games for: 26
108+(A) Virtual currency offered by or on behalf of the same publisher from which the original 27
109+digital representation of value was received; or 28
110+(B) Legal tender or bank credit outside the online game, game platform, or family of games 29
111+offered by or on behalf of the same publisher from which the original digital representation of value 30
112+was received. 31
113+(18)(23) “Virtual currency control-services vendor” means a person who has control of 32
114+virtual currency solely under an agreement with a person who, on behalf of another person, assumes 33
115+control of virtual currency. 34
116116
117117
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119-offered by or on behalf of the same publisher from which the original digital representation of value 1
120-was received. 2
121-(18)(24) “Virtual currency control-services vendor” means a person who has control of 3
122-virtual currency solely under an agreement with a person who, on behalf of another person, assumes 4
123-control of virtual currency. 5
124-(25) "Virtual currency kiosk" or "kiosk" means an electronic terminal acting as a 6
125-mechanical agent of the virtual currency kiosk operator that enables the virtual currency kiosk 7
126-operator to facilitate the exchange of virtual currency for money, bank credit, or other virtual 8
127-currency including, but not limited to: 9
128-(i) Connecting directly to a separate "virtual currency exchange" that performs the actual 10
129-virtual currency transmission; or 11
130-(ii) Drawing upon the virtual currency in the possession of the electronic terminal's 12
131-operator. 13
132-(26) "Virtual currency kiosk transaction" means a transaction conducted or performed, in 14
133-whole or in part, by electronic means via a virtual currency kiosk. Virtual currency kiosk transaction 15
134-also means a transaction made at a virtual currency kiosk to purchase virtual currency with fiat 16
135-currency or to sell virtual currency for fiat currency. 17
136-(27) "Virtual currency wallet" means a software application or other mechanism providing 18
137-a means for holding, storing and transferring virtual currency. 19
138-(28) "Virtual-currency kiosk operator" means a person or business entity that engages in 20
139-virtual-currency business activity via a virtual currency kiosk located in this state or a person that 21
140-owns, operates, or manages a virtual currency kiosk located in this state through which virtual 22
141-currency business activity is offered. 23
142-SECTION 2. Chapter 19-14.3 of the General Laws entitled "Currency Transmissions" is 24
143-hereby amended by adding thereto the following sections: 25
144-19-14.3-3.9. Virtual currency kiosk operator licensing and kiosk registration. 26
145-(a) A virtual currency kiosk operator shall not engage in virtual currency business activity 27
146-or hold itself out as being able to engage in virtual currency business activity with or on behalf of 28
147-another person unless the virtual currency kiosk operator is licensed in the state as a money 29
148-transmitter. 30
149-(b) A virtual currency kiosk operator shall not locate, or allow a third party to locate, a 31
150-virtual currency kiosk in this state unless the virtual currency kiosk operator registers the virtual 32
151-currency kiosk and obtains the prior approval of the department of business regulation (DBR) for 33
152-its activation. 34
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119+(24) "Virtual currency kiosk" means an electronic terminal acting as a mechanical agent of 1
120+the virtual currency kiosk operator to enable the virtual currency kiosk operator to facilitate the 2
121+exchange of virtual currency for money, bank credit, or other virtual currency including, but not 3
122+limited to, by: 4
123+(i) Connecting directly to a separate "virtual currency exchange" that performs the actual 5
124+virtual currency transmission; or 6
125+(ii) Drawing upon the virtual currency in the possession of the electronic terminal's 7
126+operator. 8
127+(25) "Virtual currency kiosk transaction" means a transaction conducted or performed, in 9
128+whole or in part, by electronic means via a virtual currency kiosk. Virtual currency kiosk transaction 10
129+also means a transaction made at a virtual currency kiosk to purchase virtual currency with fiat 11
130+currency or to sell virtual currency for fiat currency. 12
131+(26) "Virtual currency wallet" means a software application or other mechanism providing 13
132+a means for holding, storing and transferring virtual currency. 14
133+(27) "Virtual-currency kiosk operator" means a person that engages in virtual-currency 15
134+business activity via a money transmission kiosk located in this state or a person that owns, 16
135+operates, or manages a money transmission kiosk located in this state through which virtual 17
136+currency business activity is offered. 18
137+SECTION 2. Chapter 19-14.3 of the General Laws entitled "Currency Transmissions" is 19
138+hereby amended by adding thereto the following sections: 20
139+19-14.3-3.9. Virtual currency kiosk operator licensing and kiosk registration. 21
140+(a) A kiosk operator shall not engage in virtual currency business activity or hold itself out 22
141+as being able to engage in virtual currency business activity with or on behalf of another person 23
142+unless the kiosk operator is licensed in the state as a money transmitter. 24
143+(b) A virtual currency kiosk operator shall not locate, or allow a third party to locate, a 25
144+virtual currency kiosk in this state unless the virtual currency kiosk operator registers the money 26
145+transmission kiosk and obtains the prior approval of the department of business regulation (DBR) 27
146+for its activation. 28
147+(c) Each virtual currency kiosk operator shall submit to the DBR a quarterly report of the 29
148+location of each virtual currency kiosk located within the State of Rhode Island within forty-five 30
149+(45) days of the end of the calendar quarter. The location report shall include, at a minimum, the 31
150+following regarding the location where a virtual currency kiosk is located: 32
151+(1) The Company’s legal name; 33
152+(2) Any fictitious or trade name; 34
153153
154154
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156-(c) A virtual currency kiosk operator shall submit to the DBR a quarterly report of the 1
157-location of each virtual currency kiosk located within the State of Rhode Island within forty-five 2
158-(45) days of the end of each calendar quarter. The report shall include, at a minimum, the following: 3
159-(1) The virtual currency kiosk operator's legal name; 4
160-(2) Any fictitious or trade name of the virtual currency kiosk operator; 5
161-(3) Physical address of each virtual currency kiosk; 6
162-(4) Start date of operation of each virtual currency kiosk at the location; 7
163-(5) End date of operation of each virtual currency kiosk at the location, if applicable; and 8
164-(6) Virtual currency address(es) associated with each virtual currency kiosk. 9
165-19-14.3-3.10. Disclosures. 10
166-A virtual currency kiosk operator shall disclose in a clear, conspicuous, and easily readable 11
167-manner in a chosen language made available to and preferred by the customer, all relevant terms 12
168-and conditions generally associated with the products, services, and activities of the virtual currency 13
169-kiosk operator and virtual currency. 14
170-(1) The virtual currency kiosk operator shall provide an acknowledgement of receipt of all 15
171-disclosures required under this section to be acknowledged by the customer as confirmation of 16
172-consent. 17
173-(2) The disclosures under this subsection shall include, at a minimum, the following 18
174-provisions: 19
175-(i) A warning, written prominently and in bold type, and provided separately from the 20
176-disclosures below, stating: "WARNING: LOSSES DUE TO FRAUDULENT OR ACCIDENTAL 21
177-TRANSACTIONS ARE NOT RECOVERABLE AND TRANSACTIONS IN VIRTUAL 22
178-CURRENCY ARE IRREVERSIBLE. VIRTUAL CURRENCY TRANSACT IONS MAY BE 23
179-USED TO STEAL YOUR MONEY BY CRIMINALS IMPERSONATING THE 24
180-GOVERNMENT, ORGANIZATIONS, OR YOUR LOVED ONES. WRONGDOERS OFTEN 25
181-THREATEN JAIL TIME, SAY YOUR IDENTITY HAS BEEN STOLEN, ALLEGE YOUR 26
182-COMPUTER HAS BEEN HACKED, INSIST YOU WITHDRAW MONEY FROM YOUR 27
183-BANK ACCOUNT TO PURCHASE VIRTUAL CURRENCY, OR UTILIZE A NUMBER OF 28
184-OTHER ILLEGAL MEANS TO SCAM YOU . IF YOU BELIEVE YOU ARE BEING 29
185-SCAMMED, CALL YOUR LOCAL LAW ENFORCEMENT." 30
186-(ii) A written statement disclosing the material risks associated with virtual currency and 31
187-virtual currency transactions, including: 32
188-(A) A warning that once completed, the transaction may not be reversed; 33
189-(B) A disclosure relating to the virtual currency kiosk operator’s liability for unauthorized 34
155+LC000155 - Page 5 of 9
156+(3) Physical address; 1
157+(4) Start date of operation of virtual currency kiosk at location; 2
158+(5) End date of operation of virtual currency kiosk at location, if applicable; and 3
159+(6) Virtual currency address(es) associated with the virtual currency kiosk 4
160+19-14.3-3.10. Disclosures. 5
161+A virtual currency kiosk operator shall disclose in a clear, conspicuous, and easily readable 6
162+manner in the chosen language of the customer, all relevant terms and conditions generally 7
163+associated with the products, services, and activities of the virtual currency kiosk operator and 8
164+virtual currency. 9
165+(1) With regard to acknowledgment of disclosures, the virtual currency kiosk operator shall 10
166+receive acknowledgement of receipt of all disclosures required under this section via confirmation 11
167+of consent. 12
168+(2) With regard to relevant disclosures, the disclosures under this subsection shall address 13
169+at least the following: 14
170+(i) A warning, written prominently and in bold type, and provided separately from the 15
171+disclosures below, stating: "WARNING: LOSSES DUE TO FRAUDULENT OR ACCIDENTAL 16
172+TRANSACTIONS ARE NOT RECOVERABLE AND TRANSACTIONS IN VIRTUAL 17
173+CURRENCY ARE IRREVERSIBLE. VIRTUAL CURRENC Y TRANSACTIONS MAY BE 18
174+USED TO STEAL YOUR MONEY BY CRIMINALS IMPERSONATING THE 19
175+GOVERNMENT, ORGANIZATIONS, OR YOUR LOVED ONES. THEY CAN THREATEN 20
176+JAIL TIME, SAY YOUR IDENTITY HAS BEEN STOLEN, ALLEGE YOUR COMPUTER HAS 21
177+BEEN HACKED, INSIST YOU WITHDRAW MONEY FRO M YOUR BANK ACCOUNT TO 22
178+PURCHASE VIRTUAL CURRENCY, OR A NUMBER OF OTHER SCAMS. IF YOU BELIEVE 23
179+YOU ARE BEING SCAMMED, CALL YOUR LOCAL LAW ENFORCEMENT." 24
180+(ii) The material risks associated with virtual currency and virtual currency transactions, 25
181+including: 26
182+(A) A warning that once completed, the transaction may not be reversed; 27
183+(B) The virtual currency kiosk operator’s liability for unauthorized virtual currency 28
184+transactions; 29
185+(C) The virtual currency kiosk customer’s liability for unauthorized currency transactions; 30
186+(D) Virtual currency is not legal tender, backed or insured by the government, and accounts 31
187+and value balances are not subject to Federal Deposit Insurance Corporation, National Credit Union 32
188+Administration, or Securities Investor Protection Corporation protections; 33
189+(E) Some virtual currency transactions are deemed to be made when recorded on a public 34
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193-virtual currency transactions; 1
194-(C) A disclosure relating to the virtual currency kiosk customer’s liability for unauthorized 2
195-currency transactions; 3
196-(D) A statement that virtual currency is not legal tender, backed or insured by the 4
197-government, and accounts and value balances are not subject to Federal Deposit Insurance 5
198-Corporation, National Credit Union Administration, or Securities Investor Protection Corporation 6
199-protections; 7
200-(E) A statement that some virtual currency transactions are deemed to be made when 8
201-recorded on a public ledger which may not be the date or time when the person initiates the 9
202-transaction; 10
203-(F) A statement that virtual currency value may be derived from market participants' 11
204-continued willingness to exchange fiat currency for virtual currency, which may result in the 12
205-permanent and total loss of a particular virtual currency's value if the market for virtual currency 13
206-disappears; 14
207-(G) A statement that a person who accepts virtual currency as payment today is not required 15
208-to accept and might not accept virtual currency in the future; 16
209-(H) A statement that the volatility and unpredictability of the price of virtual currency 17
210-relative to fiat currency may result in a significant loss over a short period of time; 18
211-(I) A statement that the nature of virtual currency means that any technological difficulties 19
212-experienced by virtual currency kiosk operators may prevent access to or use of a person's virtual 20
213-currency; and 21
214-(J) A disclosure that any bond maintained by the virtual currency kiosk operator for the 22
215-benefit of a person may not cover all losses a person incurs. 23
216-(iii) A statement disclosing the amount of the transaction denominated in U.S. Dollars as 24
217-well as the applicable virtual currency; 25
218-(iv) A disclosure of any fees or expenses charged by the virtual currency kiosk operator; 26
219-(v) A disclosure of any applicable exchange rates; 27
220-(vi) Notice of a change in the virtual currency kiosk operator's rules or policies; 28
221-(vii) The name, address, and telephone number of the owner of the kiosk and the days, 29
222-times and means by which a consumer can contact the owner for consumer assistance shall be 30
223-displayed on or at the location of the kiosk, or on the first screen of such kiosk; 31
224-(viii) A disclosure of the circumstances under which the virtual currency kiosk operator, 32
225-without a court or government order, discloses a person's account information to third parties; and 33
226-(ix) Other disclosures that are customarily given in connection with a virtual currency 34
192+LC000155 - Page 6 of 9
193+ledger which may not be the date or time when the person initiates the transaction; 1
194+(F) Virtual currency's value may be derived from market participants' continued 2
195+willingness to exchange fiat currency for virtual currency, which may result in the permanent and 3
196+total loss of a particular virtual currency's value if the market for virtual currency disappears; 4
197+(G) A person who accepts a virtual currency as payment today is not required to accept and 5
198+might not accept virtual currency in the future; 6
199+(H) The volatility and unpredictability of the price of virtual currency relative to fiat 7
200+currency may result in a significant loss over a short period; 8
201+(I) The nature of virtual currency means that any technological difficulties experienced by 9
202+virtual currency kiosk operators may prevent access to or use of a person's virtual currency; and 10
203+(J) Any bond maintained by the virtual currency kiosk operator for the benefit of a person 11
204+may not cover all losses a person incurs. 12
205+(iii) The amount of the transaction denominated in US Dollars as well as the applicable 13
206+virtual currency; 14
207+(iv) Any fees or expenses charged by the virtual currency kiosk operator; 15
208+(v) Any applicable exchange rates; 16
209+(vi) A daily virtual currency transaction limit of no more than one thousand dollars 17
210+($1,000); 18
211+(vii) Notice of a change in the virtual currency kiosk operator's rules or policies; 19
212+(viii) The name, address, and telephone number of the owner of the kiosk and the days, 20
213+time, and means by which a consumer can contact the owner for consumer assistance shall be 21
214+displayed on or at the location of the virtual currency kiosk, or on the first screen of such kiosk; 22
215+(ix) Under what circumstances the virtual currency kiosk operator, without a court or 23
216+government order, discloses a person's account information to third parties; and 24
217+(x) Other disclosures that are customarily given in connection with a virtual currency 25
218+transaction. 26
219+(3) With regard to a transaction receipt, upon each transaction's completion, the virtual 27
220+currency kiosk operator shall provide a person with a physical receipt in the language chosen by 28
221+the customer containing the following information: 29
222+(i) The virtual currency kiosk operator's name and contact information, including a 30
223+telephone number to answer questions and register complaints; 31
224+(ii) The type, value, date, and precise time of the transaction, transaction hash, and each 32
225+applicable virtual currency address; 33
226+(iii) The name and contact information of the sender; 34
227227
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230-transaction. 1
231-(3) Transaction receipt. Effective November 1, 2025, upon each transaction's completion, 2
232-the virtual currency kiosk operator shall provide a person with a physical receipt in a chosen 3
233-language made available to and preferred by the customer which shall contain the following 4
234-information: 5
235-(i) The virtual currency kiosk operator's name and contact information, including a 6
236-telephone number to answer questions and register complaints; 7
237-(ii) The type, value, date, and precise time of the transaction, transaction hash, and each 8
238-applicable virtual currency address; 9
239-(iii) The name and contact information of the sender; 10
240-(iv) The name and contact information of the designated recipient; 11
241-(v) All fees charged; 12
242-(vi) The exchange rate of the virtual currency to U.S. Dollars; 13
243-(vii) A statement of the virtual currency kiosk operator's liability for non-delivery or 14
244-delayed delivery; 15
245-(viii) A statement of the virtual currency kiosk operator's refund policy; and, 16
246-(ix) Any additional information or formatting the department of business regulation may 17
247-require. 18
248-19-14.3-3.11. Prevention of fraudulent activity. 19
249-All virtual currency kiosk operators shall use blockchain analytics software to assist in the 20
250-prevention of sending purchased virtual currency from a virtual currency kiosk operator to a virtual 21
251-currency wallet known to be affiliated with fraudulent activity at the time of a transaction. The 22
252-department of business regulation may request evidence from a virtual currency kiosk operator 23
253-relating to its current use of blockchain analytics. 24
254-(1) All virtual currency kiosk operators shall take reasonable steps to detect and prevent 25
255-fraud, including establishing and maintaining a written anti-fraud policy. The anti-fraud policy 26
256-shall, at a minimum, include: 27
257-(i) The identification and assessment of fraud related risk areas; 28
258-(ii) Procedures and controls to protect against identified risks; 29
259-(iii) Allocation of responsibility for monitoring risks; and 30
260-(iv) Procedures for the periodic evaluation and revision of anti-fraud procedures, controls, 31
261-and monitoring mechanisms. 32
262-(2) Each virtual currency kiosk operator shall designate and employ a compliance officer 33
263-in accordance with the following requirements: 34
229+LC000155 - Page 7 of 9
230+(iv) The name and contact information of the designated recipient; 1
231+(v) All fees charged; 2
232+(vi) The exchange rate of the virtual currency to US Dollars; 3
233+(vii) A statement of the virtual currency kiosk operator's liability for non-delivery or 4
234+delayed delivery; 5
235+(viii) A statement of the virtual currency kiosk operator's refund policy; and, 6
236+(ix) Any additional information the department of business regulation may require. 7
237+19-14.3-3.11. Prevention of fraudulent activity. 8
238+All virtual currency kiosk operators shall use blockchain analytics software to assist in the 9
239+prevention of sending purchased virtual currency from a virtual currency kiosk operator to a virtual 10
240+currency wallet known to be affiliated with fraudulent activity at the time of a transaction. The 11
241+DBR may request evidence from any virtual currency kiosk operator of current use of blockchain 12
242+analytics. 13
243+(1) With regard to fraud policy, all virtual currency kiosk operators shall take reasonable 14
244+steps to detect and prevent fraud, including establishing and maintaining a written anti-fraud policy. 15
245+The anti-fraud policy shall, at a minimum, include: 16
246+(i) The identification and assessment of fraud related risk areas; 17
247+(ii) Procedures and controls to protect against identified risks; 18
248+(iii) Allocation of responsibility for monitoring risks; and 19
249+(iv) Procedures for the periodic evaluation and revision of the anti-fraud procedures, 20
250+controls, and monitoring mechanisms. 21
251+(2) With regard to a compliance officer, each virtual currency kiosk operator shall 22
252+designate and employ a compliance officer with the following requirements: 23
253+(i) The individual shall be qualified to coordinate and monitor compliance with any virtual 24
254+currency business activity transacted in this state pursuant to this chapter and all other applicable 25
255+federal and state laws, rules, and regulations; 26
256+(ii) The individual shall be employed full-time by the virtual currency kiosk operator; 27
257+(iii) The designated compliance officer shall not be any individual who owns more than 28
258+twenty percent (20%) of the virtual currency kiosk operator by whom the individual is employed; 29
259+and 30
260+(iv) Compliance responsibilities required under federal and state laws, rules, and 31
261+regulations shall be completed by full-time employees of the virtual currency kiosk operator. 32
262+(3) With regard to refunds for new customers, a virtual currency kiosk operator shall issue 33
263+a refund to a new customer for the full amount of all transactions made within the thirty (30) day 34
264264
265265
266-LC000155/SUB A/2 - Page 8 of 10
267-(i) The compliance officer shall be qualified to coordinate and monitor compliance with 1
268-any virtual currency business activity transacted in this state pursuant to this chapter and all other 2
269-applicable federal and state laws, rules, and regulations; 3
270-(ii) The compliance officer shall be employed full-time by the virtual currency kiosk 4
271-operator; and 5
272-(iii) The compliance officer shall not be an individual who owns more than a twenty percent 6
273-(20%) interest of the virtual currency kiosk operator by whom the individual is employed. 7
274-(3) Upon request of the customer, a virtual currency kiosk operator shall issue a refund to 8
275-a new customer for the full amount of all transactions made within the thirty (30) day new customer 9
276-time period as provided in the definition of "new customer" in § 19-14.3-1.1. In order to receive a 10
277-refund under this subsection, a new customer shall have been fraudulently induced to engage in the 11
278-virtual currency transaction(s) and shall contact the virtual currency kiosk operator and a 12
279-government or law enforcement agency to inform them of the fraudulent nature of the transaction(s) 13
280-within ninety (90) days of the last transaction to occur during the thirty (30) day new customer time 14
281-period. 15
282-(4) A virtual currency kiosk operator shall issue a refund to an existing customer for the 16
283-full amount of all transaction fees upon the request of an existing customer. In order to receive a 17
284-refund under this subsection, an existing customer shall have been fraudulently induced to engage 18
285-in the virtual currency transaction(s) and shall contact the virtual currency kiosk operator and a 19
286-government or law enforcement agency to inform them of the fraudulent nature of the transaction(s) 20
287-within ninety (90) days of each transaction. 21
288-19-14.3-3.12. Daily transaction limit for new and existing customers. 22
289-(a) For new customers a virtual currency kiosk operator shall not accept transactions of 23
290-more than two thousand U.S. dollars ($2,000) a day of cash or the equivalent. 24
291-(b) For existing customers, a virtual currency kiosk operator shall not accept transactions 25
292-of more than five thousand U.S. dollars ($5,000) a day of cash or the equivalent. 26
293-(c) The limits imposed by this section apply to a single customer without regard to the 27
294-number of virtual currency kiosks utilized in the state. 28
295-19-14.3-3.13. Customer service. 29
296-All virtual currency kiosk operators performing business in the state shall provide live 30
297-customer service, at a minimum, Monday through Friday between 8:00 AM EST and 10:00 PM 31
298-EST. The customer service toll free number shall be displayed on the virtual currency kiosk or the 32
299-virtual currency kiosk screen. 33
300-
301-
302-LC000155/SUB A/2 - Page 9 of 10
303-SECTION 3. This act shall take effect upon passage. 1
266+LC000155 - Page 8 of 9
267+new customer time period upon the request of the customer. In order to receive a refund under this 1
268+subsection, a new customer shall have been fraudulently induced to engage in the virtual currency 2
269+transactions and contacts the virtual currency kiosk operator and a government or law enforcement 3
270+agency to inform them of the fraudulent nature of the transaction agency within ninety (90) days 4
271+of the last transaction to occur during the thirty (30) day new customer time period. 5
272+(4) With regard to refunds for existing customers, a virtual currency kiosk operator shall 6
273+issue a refund to an existing customer for the full amount of all transaction fees upon the request 7
274+of an existing customer. In order to receive a refund under this subsection, a customer shall have 8
275+been fraudulently induced to engage in the virtual currency transactions and contacts the virtual 9
276+currency kiosk operator and a government or law enforcement agency to inform them of the 10
277+fraudulent nature of the transaction within ninety (90) days of the transaction. 11
278+19-14.3-3.12. Daily transaction limit. 12
279+A virtual currency kiosk operator shall not accept transactions of more than one thousand 13
280+US dollars ($1,000) of cash or the equivalent in virtual currency in a day in connection with virtual 14
281+currency kiosk transactions with a single customer in this state via one or more virtual currency 15
282+kiosks. 16
283+19-14.3-3.13. Fee cap. 17
284+The aggregate fees and charges, directly or indirectly, charged to a customer related to a 18
285+single transaction or series of related transactions involving virtual currency effected through a 19
286+money transmission kiosk in Rhode Island, including any difference between the price charged to 20
287+a customer to buy, sell, exchange, swap, or convert virtual currency and the prevailing market value 21
288+of such virtual currency at the time of such transaction, shall not exceed the greater of the following: 22
289+(1) Five US dollars ($5.00); or 23
290+(2) Three percent (3.0%) of the US dollar equivalent of virtual currency involved in the 24
291+transaction or transactions. 25
292+19-14.3-3.14. Customer service. 26
293+All virtual currency kiosk operators performing business in the state shall provide live 27
294+customer service at a minimum on Monday through Friday between 8:00 AM EST and 10:00 PM 28
295+EST. The customer service toll free number shall be displayed on the virtual currency kiosk or the 29
296+virtual currency kiosk screens. 30
297+SECTION 3. This act shall take effect upon passage. 31
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305-LC000155/SUB A/2
299+LC000155
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308302
309-LC000155/SUB A/2 - Page 10 of 10
303+LC000155 - Page 9 of 9
310304 EXPLANATION
311305 BY THE LEGISLATIVE COUNCIL
312306 OF
313307 A N A C T
314308 RELATING TO FINANCIAL INSTITUTIONS -- CURRENCY TRANSMISSIONS
315309 ***
316-This act would create a process for the licensure and oversight by the department of 1
317-business regulation over the practices and procedures of virtual currency kiosk operators to prevent 2
318-fraud related to the use of virtual currency kiosks, by establishing daily transaction limits and the 3
319-regulating of fees. 4
320-This act would take effect upon passage. 5
310+This act would establish regulation by the department of business regulation (DBR) over 1
311+the practices and procedures of virtual currency kiosk operators to prevent fraud related to the use 2
312+of virtual currency kiosks, by establishing daily transaction limits and the regulating of fees. 3
313+This act would take effect upon passage. 4
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315+LC000155
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