Texas 2025 - 89th Regular

Texas House Bill HB2798 Compare Versions

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Old	New		Differences
1	1		89R6461 SCR-F
2		-	By: Plesa, Capriglione, Garcia of Dallas H.B. No. 2798
	2	+	By: Plesa H.B. No. 2798
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5	7		A BILL TO BE ENTITLED
6	8		AN ACT
7	9		relating to disclosures and other requirements concerning virtual
8	10		currency kiosk transactions; authorizing a fee.
9	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	12		SECTION 1. Subtitle E, Title 3, Finance Code, is amended by
11	13		adding Chapter 161 to read as follows:
12	14		CHAPTER 161. VIRTUAL CURRENCY KIOSKS
13	15		Sec. 161.001. DEFINITIONS. In this chapter:
14	16		(1) "Digital asset service provider" has the meaning
15	17		assigned by Section 160.001.
16	18		(2) "Transaction hash" means a unique identifier
17	19		consisting of a string of characters that act as a record of a
18	20		transaction and provide proof that the transaction was verified and
19	21		added to the blockchain.
20	22		(3) "Virtual currency" has the meaning assigned by
21	23		Section 12.001, Business & Commerce Code.
22	24		(4) "Virtual currency kiosk" means an electronic
23	25		terminal operated by a virtual currency kiosk operator in this
24	26		state to enable the operator to facilitate the exchange of virtual
25	27		currency for money, bank credit, or other virtual currency,
26	28		including by:
27	29		(A) connecting directly to a separate virtual
28	30		currency exchanger that performs the actual virtual currency
29	31		transmission; or
30	32		(B) drawing on the virtual currency in the
31	33		possession of the electronic terminal's operator.
32	34		(5) "Virtual currency kiosk operator" or "operator"
33	35		means a person, including a digital asset service provider, that
34	36		operates a virtual currency kiosk.
35	37		(6) "Virtual currency kiosk transaction" means a
36	38		transaction conducted or performed, wholly or partly, by electronic
37	39		means using a virtual currency kiosk. The term includes a
38	40		transaction made at a virtual currency kiosk to purchase currency
39	41		with fiat currency or to sell virtual currency for fiat currency.
40	42		Sec. 161.002. APPLICABILITY. This chapter applies to a
41	43		virtual currency kiosk operator that operates a virtual currency
42	44		kiosk in this state.
43	45		Sec. 161.003. DISCLOSURES ON MATERIAL RISKS. (a) Before
44	46		entering into an initial virtual currency kiosk transaction for, on
45	47		behalf of, or with a customer and subject to Subsection (c), a
46	48		virtual currency kiosk operator shall clearly and conspicuously
47	49		disclose, in plain, easy to read language, at least the following
48	50		material risks generally associated with virtual currency:
49	51		(1) virtual currency is not legal tender and is not
50	52		backed or insured by the government;
51	53		(2) accounts and value balances of virtual currency
52	54		are not subject to Federal Deposit Insurance Corporation, National
53	55		Credit Union Administration, or Securities Investor Protection
54	56		Corporation protections;
55	57		(3) some virtual currency transactions are considered
56	58		to be made only when recorded on a public ledger, which may not be
57	59		the date or time when the transaction is initiated;
58	60		(4) a virtual currency's value may be derived from the
59	61		continued willingness of market participants to exchange fiat
60	62		currency for the virtual currency, which may result in the
61	63		permanent and total loss of the virtual currency's value if the
62	64		market for that virtual currency disappears;
63	65		(5) a customer who accepts a virtual currency as
64	66		payment at the time of the transaction is not required to accept the
65	67		currency as payment and may decline to accept the currency as
66	68		payment in a future transaction;
67	69		(6) the volatility and unpredictability of the price
68	70		of virtual currency relative to fiat currency may result in a
69	71		significant loss in value over a short period;
70	72		(7) the nature of virtual currency means that any
71	73		technological difficulties experienced by a virtual currency kiosk
72	74		operator may prevent access to or use of their customers' virtual
73	75		currency; and
74	76		(8) any bond maintained by the virtual currency kiosk
75	77		operator for the benefit of the operator's customers may not cover
76	78		all of the losses incurred by those customers.
77	79		(b) In addition to the disclosures under Subsection (a), a
78	80		virtual currency kiosk operator shall provide a written disclosure
79	81		that:
80	82		(1) is prominently displayed and in bold type;
81	83		(2) must be acknowledged by the customer;
82	84		(3) is provided separately from the disclosures under
83	85		Subsection (a); and
84	86		(4) states:
85	87		"WARNING: LOSSES DUE TO FRAUDULENT OR ACCIDENTAL
86	88		TRANSACTIONS ARE NOT RECOVERABLE AND TRANSACTIONS IN VIRTUAL
87	89		CURRENCY ARE IRREVERSIBLE. VIRTUAL CURRENCY TRANSACTIONS MAY BE
88	90		USED BY SCAMMERS IMPERSONATING LOVED ONES, THREATENING JAIL TIME,
89	91		OR INSISTING YOU WITHDRAW MONEY FROM YOUR BANK ACCOUNT TO PURCHASE
90	92		VIRTUAL CURRENCY."
91	93		(c) The disclosures under Subsection (a) must be displayed
92	94		on the screen of the virtual currency kiosk with the ability for a
93	95		customer to acknowledge the receipt of the disclosures.
94	96		Sec. 161.004. TRANSACTION-RELATED DISCLOSURES. (a) A
95	97		virtual currency kiosk operator shall disclose all relevant terms
96	98		generally associated with virtual currency and with the products,
97	99		services, and activities of the operator, including:
98	100		(1) the customer's liability for unauthorized virtual
99	101		currency transactions;
100	102		(2) the customer's right to:
101	103		(A) stop payment of a virtual currency transfer
102	104		and the procedure to stop payment;
103	105		(B) receive a receipt, trade ticket, or other
104	106		evidence of a transaction at the time of the transaction; and
105	107		(C) receive prior notice of a change in the
106	108		operator's rules or policies;
107	109		(3) the circumstances under which the operator,
108	110		without a court or government order, is authorized to disclose a
109	111		customer's account information to third parties; and
110	112		(4) other disclosures customarily provided in
111	113		connection with the opening of a customer's account.
112	114		(b) Before a virtual currency transaction is entered into
113	115		for, on behalf of, or with a customer, a virtual currency kiosk
114	116		operator shall clearly and conspicuously disclose the terms of the
115	117		transaction. The disclosure must:
116	118		(1) be in plain, easy to read language; and
117	119		(2) address at least:
118	120		(A) the amount of the transaction;
119	121		(B) any transaction fees, expenses, or charges,
120	122		including applicable exchange rates;
121	123		(C) the type and nature of the transaction;
122	124		(D) a warning that once a transaction is
123	125		completed, the transaction may not be reversed;
124	126		(E) the daily virtual currency kiosk transaction
125	127		limit for new customers prescribed by Section 161.008;
126	128		(F) the difference in the virtual currency's sale
127	129		price compared to the current market price; and
128	130		(G) any other disclosures customarily provided
129	131		in connection with a virtual currency kiosk transaction.
130	132		Sec. 161.005. ACKNOWLEDGEMENT OF DISCLOSURES. Before
131	133		completing a transaction, a virtual currency kiosk operator shall
132	134		ensure that each customer who engages in a virtual currency kiosk
133	135		transaction using the operator's kiosk acknowledges receipt of the
134	136		disclosures required under Sections 161.003 and 161.004 by
135	137		obtaining confirmation of consent.
136	138		Sec. 161.006. RECEIPT REQUIRED. After a transaction is
137	139		completed, the virtual currency kiosk operator shall provide the
138	140		customer with a physical receipt, or an electronic receipt sent by
139	141		e-mail or text message, that contains:
140	142		(1) the operator's name and contact information,
141	143		including a telephone number to answer questions and register
142	144		complaints;
143	145		(2) the type, value, date, and precise time of the
144	146		transaction, the transaction hash, and each virtual currency
145	147		address;
146	148		(3) the fees charged;
147	149		(4) the exchange rate;
148	150		(5) a statement of the operator's liability for
149	151		nondelivery or delayed delivery;
150	152		(6) a statement of the operator's refund policy; and
151	153		(7) any additional information the banking
152	154		commissioner of Texas may require.
153	155		Sec. 161.007. REFUNDS FOR NEW CUSTOMERS. (a) For purposes
154	156		of this section, a person is considered to be a new customer if less
155	157		than 72 hours has elapsed from the time the person first signed up
156	158		as a customer.
157	159		(b) The operator of a virtual currency kiosk shall issue to
158	160		a new customer, on request, a refund for the total amount of all
159	161		virtual currency kiosk transactions made by the customer at the
160	162		kiosk during the new customer period described by Subsection (a) if
161	163		the customer:
162	164		(1) was fraudulently induced to enter into a virtual
163	165		currency kiosk transaction; and
164	166		(2) not later than the 14th day after the date on which
165	167		the last virtual currency kiosk transaction was made during that
166	168		72-hour period, contacts the operator and an applicable
167	169		governmental or law enforcement agency to inform them of the
168	170		fraudulent nature of the transaction.
169	171		Sec. 161.008. DAILY TRANSACTION LIMIT. (a) For purposes of
170	172		this section, "new customer" means a person described by Section
171	173		161.007(a).
172	174		(b) A maximum daily transaction limit of $2,000 is
173	175		established for each new customer of a virtual currency kiosk
174	176		located in this state.
175	177		Sec. 161.009. ADMINISTRATION OF CHAPTER; FEES. (a) The
176	178		Texas Department of Banking shall administer and enforce this
177	179		chapter. The banking commissioner of Texas may charge a virtual
178	180		currency kiosk operator a reasonable fee to cover the costs of
179	181		implementing this chapter.
180	182		(b) The banking commissioner may investigate a virtual
181	183		currency kiosk operator to determine compliance with this chapter
182	184		in the same manner as allowed under Subchapter B, Chapter 152,
183	185		including examination of the records of the operator.
184	186		Sec. 161.010. RULES. The Finance Commission of Texas may
185	187		adopt rules necessary to administer and enforce this chapter.
186	188		SECTION 2. This Act takes effect September 1, 2025.