The bill amends Washington State's existing laws on money transmission to incorporate specific regulations for virtual currency transaction kiosks. It mandates that individuals or entities owning, operating, or facilitating these kiosks must obtain a license, and outlines the requirements for virtual currency licensees, including clear disclosures about fees, risks, and the irrevocability of transactions. Additionally, it requires licensees to maintain a detailed plan for winding down operations and ensures consumer protection by stipulating the return of funds and proper notification before terminating business operations.

Moreover, the bill introduces compliance measures for kiosk operators, such as maintaining know-your-customer information, preventing multiple customers from using the same wallet, and employing a chief compliance officer. It sets minimum tangible net worth requirements based on transaction volume and emphasizes consumer transparency by requiring detailed receipts for transactions. 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 rapidly evolving virtual currency landscape.

Statutes affected:
Original Bill: 19.230.030, 19.230.370, 19.230.010