The bill titled "An Act relating to the regulation of virtual currency kiosks" introduces Chapter 161 to the Texas Finance Code, focusing on the operation and regulation of virtual currency kiosks. It defines key terms such as "virtual currency," "virtual currency kiosk," and "virtual currency kiosk operator." The legislation requires operators to obtain a money transmission license and register their kiosks with the Texas Department of Licensing and Regulation. Additionally, operators must file quarterly reports on their kiosks' locations and operational status. Consumer protection measures are emphasized, including mandatory disclosures about transaction risks, written acknowledgments from customers, and the use of blockchain analytics to prevent fraud.

The bill also mandates that each kiosk operator appoint a full-time compliance officer, limiting their ownership stake to no more than 20 percent. It establishes a daily transaction limit of $1,000 for customers and caps transaction fees at either $5 or three percent of the transaction's value. Operators are required to provide live customer service during specified hours and display essential contact information on their kiosks. The bill includes provisions for the seizure of non-compliant kiosks and grants the department authority to implement necessary rules. These regulations are set to take effect on September 1, 2025.

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