Substitute House Bill No. 5211, Public Act No. 24-146, is a legislative act that amends existing statutes to address the regulation of virtual currency and money transmission, effective October 1, 2024. The bill updates definitions within the law, such as adding "existing customer" and modifying terms like "electronic payment instrument," "control," and "money transmission." It also clarifies the presumption of control based on shareholding percentages and aggregates family members' interests for this determination. The bill expands the list of permissible investments for money transmission licensees, including various financial instruments and cash forms, and redefines "prime quality" for investments. It sets forth requirements for money transmission licensure, including the need for a main office license, application and renewal fees, and procedures for license surrender.

Furthermore, the bill imposes new obligations on licensees and virtual currency kiosk operators, such as maintaining a wind-down plan and providing detailed disclosures about the risks of virtual currency transactions. It requires operators to provide comprehensive receipts for transactions, sets fee caps, and establishes transaction limits based on customer status. The bill also introduces customer protection measures, such as fraud transaction cancellation rights, ID verification, and transaction confirmations for certain customers. Additionally, it mandates the employment of a full-time chief compliance officer and the use of full-time employees for compliance tasks. Lastly, the bill allows the commissioner to regulate the business use of digital assets, including virtual currencies, stablecoins, and nonfungible tokens (NFTs), with a focus on consumer protection, and updates legal language to include NFTs in the regulatory framework.

Statutes affected:
Raised Bill:
BA Joint Favorable:
File No. 178:
Public Act No. 24-146: