The bill seeks to amend the Code of West Virginia to enhance the regulation of money service businesses, particularly focusing on virtual currency and the operation of virtual currency kiosks. It introduces new definitions such as "virtual currency," "virtual currency kiosk," and "virtual currency kiosk operator," and incorporates these kiosks into the existing framework of money transmission. The legislation establishes a timeline for the licensure of kiosks, requiring operators to submit applications through the Nationwide Multistate Licensing System (NMLS) by November 1, 2026, with licenses becoming effective on January 1, 2027. It also outlines specific customer disclosure and receipt requirements, maximum daily transaction limits, and mandates that operators implement fraud prevention measures, including customer identification protocols.

Additionally, the bill emphasizes consumer protection and regulatory oversight by requiring authorized delegates to report theft or loss of payment instruments within 24 hours and to cease operations immediately upon license suspension or revocation. Licensees must also report the removal or termination of authorized delegate locations quarterly to the commissioner. The legislation aims to ensure compliance with both state and federal laws while enhancing transparency and security in virtual currency transactions, thereby modernizing the regulatory framework for money service businesses in West Virginia.

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