The proposed bill amends Washington State's money transmission laws to include specific regulations for virtual currency transaction kiosks. It mandates that individuals or entities operating these kiosks must obtain a license, thereby classifying them as engaged in money transmission. The bill outlines the responsibilities of virtual currency licensees, which include providing customers with detailed disclosures about fees, transaction risks, and the irrevocability of transactions. Additionally, it requires licensees to maintain a plan for winding down operations and ensures consumer protection by stipulating the return of funds upon business termination.

Moreover, the bill introduces compliance measures for kiosk operators, such as maintaining customer identification records, preventing multiple users from accessing the same virtual currency wallet, and employing a chief compliance officer. It sets minimum tangible net worth requirements based on transaction volume and emphasizes consumer awareness by requiring detailed transaction receipts. The legislation also introduces new definitions related to virtual currency, including "virtual currency address," "virtual currency transaction kiosk," and "virtual currency wallet," which will take effect on January 1, 2026. Overall, the bill aims to enhance regulatory oversight and consumer protection in the evolving landscape of virtual currency transactions.

Statutes affected:
Original Bill: 19.230.030, 19.230.370, 19.230.010