The bill amends the Code of West Virginia to enhance the regulation and licensure of virtual currency kiosks, introducing new definitions such as "virtual currency," "virtual currency kiosk," and "virtual currency business activity." It incorporates the operation of these kiosks into the existing framework for money transmission, establishing a licensure process that requires operators to apply through the Nationwide Multistate Licensing System (NMLS) by November 1, 2026, for licenses effective January 1, 2027. The legislation mandates that kiosk operators disclose material risks associated with virtual currency transactions, including transaction irreversibility and the absence of government backing, while also setting specific requirements for customer disclosures, transaction limits, and receipt provision.

Additionally, the bill outlines the responsibilities of licensed operators, including maintaining customer identification, preventing fraud, and providing customer support. It establishes maximum daily transaction limits and requires the designation of a chief compliance officer. The legislation also emphasizes cooperation between state and federal agencies in enforcement and mandates that authorized delegates report theft or loss of payment instruments within 24 hours. Licensees must inform authorized delegates of any license suspensions or revocations, and they are required to report the removal or termination of authorized delegate locations quarterly. Overall, the bill aims to improve transparency and accountability in the money transmission sector, particularly regarding virtual currency transactions.

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