The bill amends the Code of West Virginia to introduce regulations for money transmission services, specifically focusing on virtual currency kiosks. It establishes a new section, 32A-2-8c, which outlines the licensing requirements for these kiosks, including definitions related to virtual currency and the responsibilities of licensees. Key provisions include the necessity for licensees to designate a contact for law enforcement, enforce daily transaction limits, and provide necessary disclosures and receipts for virtual currency transactions. Additionally, the bill mandates that these kiosks operate as delegates of a licensed money transmission entity, enhancing regulatory oversight in this area.

Moreover, the legislation requires virtual currency kiosk operators to apply for licensure through the Nationwide Multistate Licensing System (NMLS) within 90 days if they were already in operation prior to the amendments. It emphasizes the need for clear disclosures regarding the risks of virtual currency transactions, including the irreversibility of transactions and the absence of government backing. The bill also sets compliance requirements for licensees, such as appointing a chief compliance officer, maintaining customer identification records, and providing live customer support. Overall, the bill aims to improve consumer protection and transparency in virtual currency transactions while addressing potential conflicts between state and federal laws.

Statutes affected:
Introduced Version: 32A-2-1, 32A-2-4, 32A-2-17, 32A-2-27, 32A-2-8c
Committee Substitute: 32A-2-1, 32A-2-4, 32A-2-17, 32A-2-27, 32A-2-8c
Engrossed Committee Substitute: 32A-2-1, 32A-2-4, 32A-2-17, 32A-2-27, 32A-2-8c
Enrolled Committee Substitute: 32A-2-1, 32A-2-4, 32A-2-17, 32A-2-27, 32A-2-8c