Substitute House Bill No. 5211, also known as Public Act No. 24-146, is a comprehensive piece of legislation that updates the legal framework for money transmission services, with a particular focus on virtual currency. The bill repeals and replaces Section 36a-596 of the 2024 supplement to the general statutes, effective October 1, 2024, and introduces new definitions such as "virtual currency kiosk," "existing customer," and "new customer," while clarifying existing terms like "electronic payment instrument," "control," and "permissible investment." It also extends the scope of the statutes to include an additional section, now covering sections 36a-595 to 36a-614. The bill distinguishes between existing and new customers for virtual currency transactions, modifies the definition of "electronic payment instrument," and provides a more detailed description of "permissible investments," including cash in U.S. currency and cash equivalents.

The bill sets forth that, starting October 1, 2024, operators of virtual currency kiosks will require licensure as they are considered engaged in the business of money transmission. It outlines the activities that constitute money transmission, sets initial and renewal license fees, and specifies procedures for license surrender. Additionally, the bill requires licensees to maintain a detailed plan for winding down operations, including measures to protect consumer funds. It also amends required disclosures by virtual currency kiosk operators, mandates the provision of detailed receipts post-transaction, sets fee caps and transaction limits, and introduces measures to protect customers from fraud, including requiring government-issued ID and live customer support.

Furthermore, Substitute House Bill No. 5211 imposes new operational requirements on virtual currency kiosk owners or operators, such as engaging in discussions with customers to prevent fraudulent transactions and requiring the employment of a chief compliance officer. The bill also amends Section 36a-614 to expand the commissioner's regulatory authority to include nonfungible tokens (NFTs), except those for personal or household use, and clarifies the inclusion of NFTs in the regulatory scope by inserting relevant language and deleting the word "and" before the mention of stablecoins.

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