Chapter 117 (SB 305), Financial Institutions and Activities – Virtual Currency Kiosks – Registration and Regulation
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WES MOORE, Governor Ch. 117
Chapter 117
(Senate Bill 305)
AN ACT concerning
Financial Institutions and Activities – Virtual Currency Kiosks – Registration
and Regulation
FOR the purpose of establishing registration and operating requirements for a virtual
currency kiosk operator to operate a virtual currency kiosk in the State; authorizing
the Commissioner of Financial Regulation to investigate and enforce this Act in a
certain manner; authorizing the Commissioner to assess and recover certain
penalties for a knowing and willful violation of this Act; and generally relating to the
regulation of virtual currency kiosks.
BY repealing and reenacting, without amendments,
Article – Financial Institutions
Section 1–101(a) and (g)
Annotated Code of Maryland
(2020 Replacement Volume and 2024 Supplement)
BY adding to
Article – Financial Institutions
Section 12–1201 through 12–1207 12–1209 to be under the new subtitle “Subtitle 12.
Virtual Currency Kiosks”
Annotated Code of Maryland
(2020 Replacement Volume and 2024 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Financial Institutions
1–101.
(a) In this article, unless the context clearly requires otherwise, the following
words have the meanings indicated.
(g) “Commissioner” means the Commissioner of Financial Regulation in the
Maryland Department of Labor.
SUBTITLE 12. VIRTUAL CURRENCY KIOSKS.
12–1201.
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Ch. 117 2025 LAWS OF MARYLAND
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(B) “EXPERIENCED USER” MEANS A PERSON THAT IS NOT A NEW USER.
(C) “NEW USER” MEANS A PERSON THAT IS TRANSACTING WITH A VIRTUAL
CURRENCY KIOSK OPERATOR:
(1) FOR THE FIRST TIME; OR
(2)ANYTIME IN THE 72 HOURS IMMEDIATELY FOLLOWING THE
PERSON’S FIRST TRANSACTION WITH THE VIRTUAL CURRENCY KIOSK OPERATOR.
(B) (D) (1) “VIRTUAL CURRENCY” MEANS A DIGITAL REPRESENTATION
OF VALUE THAT:
(I) IS USED AS A MEDIUM OF EXCHANGE, UNIT OF ACCOUNT, OR
STORE OF VALUE; AND
(II) IS NOT CURRENCY, AS DEFINED IN § 12–802 OF THIS TITLE.
(2) “VIRTUAL CURRENCY” DOES NOT INCLUDE:
(I) A DIGITAL REPRESENTATION OF VALUE THAT CAN BE
REDEEMED FOR:
1. GOODS, SERVICES, DISCOUNTS, OR PURCHASES
SOLELY AS PART OF A CUSTOMER AFFINITY OR REWARDS PROGRAM WITH THE
ISSUING MERCHANT OR OTHER DESIGNATED MERCHANTS, OR BOTH; OR
2. DIGITAL UNITS IN ANOTHER CUSTOMER AFFINITY OR
REWARDS PROGRAM THAT MAY NOT DIRECTLY OR INDIRECTLY BE CONVERTED
INTO, REDEEMED, OR EXCHANGED FOR MONEY, MONETARY VALUE, BANK CREDIT,
OR VIRTUAL CURRENCY; OR
(II)
A DIGITAL REPRESENTATION OF VALUE ISSUED BY OR ON
BEHALF OF A PUBLISHER THAT:
1. IS USED SOLELY WITHIN AN ONLINE GAME, GAME
PLATFORM, OR FAMILY OF GAMES SOLD BY THE SAME PUBLISHER OR OFFERED ON
THE SAME GAME PLATFORM;
2.
HAS NO MARKET OR APPLICATION OUTSIDE OF THE
ONLINE GAME, GAME PLATFORM, OR FAMILY OF GAMES;
–2–
WES MOORE, Governor Ch. 117
3.
MAY NOT DIRECTLY OR INDIRECTLY BE CONVERTED
INTO, REDEEMED, OR EXCHANGED FOR MONEY, MONETARY VALUE, BANK CREDIT,
OR VIRTUAL CURRENCY; AND
4.
MAY OR MAY NOT BE REDEEMABLE FOR REAL–WORLD
GOODS, SERVICES, DISCOUNTS, OR PURCHASES.
(C) (E) (1) “VIRTUAL CURRENCY KIOSK” MEANS A STAND–ALONE
AUTOMATED PLATFORM THROUGH WHICH A CONSUMER MAY DEPOSIT OR RECEIVE
CASH OR USE A CREDIT OR DEBIT CARD TO OBTAIN VIRTUAL CURRENCY SERVICES.
(2) “VIRTUAL CURRENCY KIOSK” DOES NOT INCLUDE AN AUTOMATED
TELLER MACHINE, AS DEFINED IN § 1–401(D) OF THIS ARTICLE.
(D) (F) “VIRTUAL CURRENCY KIOSK OPERATOR” OR “OPERATOR” MEANS
A PERSON WHO OWNS OR OPERATES A VIRTUAL CURRENCY KIOSK IN THE STATE.
(E) (G) (1) “VIRTUAL CURRENCY SERVICE” MEANS:
(I)THE CONVERSION OF A VIRTUAL CURRENCY TO ANOTHER
FORM OF VIRTUAL CURRENCY; OR
(II)
THE PURCHASE, SALE, EXCHANGE, SWAP, OR TRANSFER OF
VIRTUAL CURRENCY BY ANY MEANS.
(2) “VIRTUAL CURRENCY SERVICE” INCLUDES ANY OTHER ACTIVITY
THAT THE COMMISSIONER IDENTIFIES AS A VIRTUAL CURRENCY SERVICE BY
REGULATION.
(3) “VIRTUAL CURRENCY SERVICE” DOES NOT INCLUDE MONEY
TRANSMISSION, AS DEFINED IN § 12–401(P) OF THIS TITLE.
12–1202.
THIS SUBTITLE APPLIES TO A VIRTUAL CURRENCY KIOSK OPERATOR.
12–1203.
(A) BEGINNING JANUARY 1, 2026, A VIRTUAL CURRENCY KIOSK OPERATOR
SHALL REGISTER A VIRTUAL CURRENCY KIOSK WITH THE COMMISSIONER BEFORE
OPERATING THE VIRTUAL CURRENCY KIOSK IN THE STATE.
(B) AN APPLICATION FOR REGISTRATION SHALL INCLUDE:
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Ch. 117 2025 LAWS OF MARYLAND
(1) THE NAME OF THE VIRTUAL CURRENCY KIOSK OPERATOR;
(2) THE ADDRESS OF THE VIRTUAL CURRENCY KIOSK OPERATOR;
(3) UNIQUE IDENTIFYING INFORMATION FOR THE VIRTUAL
CURRENCY KIOSK, SUCH AS THE MANUFACTURER NAME, MODEL NUMBER, SERIAL
NUMBER, OR ASSET TAG;
(4) IF THE VIRTUAL CURRENCY KIOSK OPERATOR INTENDS TO
OPERATE THE VIRTUAL CURRENCY KIOSK FROM ANY FIXED LOCATION FOR MORE
THAN 30 DAYS IN A CALENDAR YEAR, EACH PHYSICAL ADDRESS WHERE THE
VIRTUAL CURRENCY KIOSK WILL BE OPERATED;
(5) IF THE VIRTUAL CURRENCY KIOSK OPERATOR INTENDS TO
OPERATE THE VIRTUAL CURRENCY KIOSK AT ANY LOCATION FOR 30 DAYS OR LESS
IN A CALENDAR YEAR, THE GEOGRAPHIC AREA WHERE THE LICENSEE INTENDS TO
OPERATE THE VIRTUAL CURRENCY KIOSK; AND
(6) ANY OTHER INFORMATION THAT THE COMMISSIONER REQUIRES
BY REGULATION.
(C) A VIRTUAL CURRENCY KIOSK OPERATOR:
(1) SHALL RENEW THE REGISTRATION ON AN ANNUAL BASIS; AND
(2) MAY BE REQUIRED TO PAY A FEE AT THE TIME OF RENEWAL.
(D) THE COMMISSIONER MAY ADOPT AND ENFORCE:
(1) REGISTRATION PROCEDURES FOR VIRTUAL CURRENCY KIOSKS,
WHICH MAY INCLUDE THE USE OF NMLS;
(2) REGISTRATION FEES FOR VIRTUAL CURRENCY KIOSKS, WHICH
MAY INCLUDE FEES FOR THE USE OF NMLS, TO BE PAID DIRECTLY BY THE VIRTUAL
CURRENCY KIOSK OPERATOR;
(3) PROCEDURES AND FEES FOR RENEWING A VIRTUAL CURRENCY
KIOSK’S REGISTRATION, WHICH MAY INCLUDE FEES FOR THE RENEWED USE OF
NMLS, TO BE PAID DIRECTLY BY THE VIRTUAL CURRENCY KIOSK OPERATOR; AND
(4)REGULATIONS REGARDING THE LIGHTING AND SAFETY OF
VIRTUAL CURRENCY KIOSK LOCATIONS; AND
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WES MOORE, Governor Ch. 117
(5) REGULATIONS REGARDING APPROPRIATE SIGNAGE TO CLEARLY
IDENTIFY A KIOSK AS A VIRTUAL CURRENCY KIOSK.
12–1204.
(A) A VIRTUAL CURRENCY KIOSK OPERATOR SHALL ENSURE THAT THE
VIRTUAL CURRENCY KIOSK DOES NOT, IN CONNECTION WITH VIRTUAL CURRENCY
SERVICES FOR A SINGLE PERSON IN THE STATE USING ONE OR MORE VIRTUAL
CURRENCY KIOSKS, ACCEPT OR DISPENSE IN A SINGLE DAY MORE THAN $1,000:
(1) IN CASH, INCLUDING VALUE DOWNLOADED THROUGH PRE–PAID
ACCESS, AS DEFINED IN § 12–401(U) OF THIS TITLE; OR
(2) THE EQUIVALENT IN CREDIT AN AMOUNT OF CASH, INCLUDING
VALUE DOWNLOADED THROUGH PREPAID ACCESS, AS DEFINED IN § 12–401 OF THIS
TITLE, OR THE EQUIVALENT IN CREDIT THAT EXCEEDS:
(1) FOR A NEW USER, $2,000; OR
(2) FOR AN EXPERIENCED USER, $10,500.
(B) A VIRTUAL CURRENCY KIOSK OPERATOR MAY:
(1) MAY NOT IMPOSE A FEE IN EXCESS OF THE GREATER OF:
(1) (I) $5; OR
(2) (II) 15% OF THE AMOUNT OF A VIRTUAL CURRENCY SERVICE
TRANSACTION; AND
(2) SHALL REFUND ANY FEE IMPOSED ON A TRANSACTION THAT IS
VERIFIED AS FRAUDULENT IN A MANNER ESTABLISHED BY THE COMMISSIONER
THROUGH REGULATION.
(C) A VIRTUAL CURRENCY KIOSK OPERATOR SHALL COLLECT THE
FOLLOWING INFORMATION FROM A PERSON BEFORE ACCEPTING CASH OR CREDIT
IN CONNECTION WITH A VIRTUAL CURRENCY SERVICE FROM THE PERSON:
(1) NAME;
(2) DATE OF BIRTH;
(3) MAILING ADDRESS;
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Ch. 117 2025 LAWS OF MARYLAND
(4) ELECTRONIC MAIL ADDRESS;
(5) PHONE NUMBER; AND
(6) A COPY OF THE PERSON’S GOVERNMENT–ISSUED
IDENTIFICATION.
(D) AT THE END OF A VIRTUAL CURRENCY TRANSACTION, THE VIRTUAL
CURRENCY KIOSK OPERATOR SHALL DISPENSE OR DISPLAY A RECEIPT THAT
INCLUDES:
(1) THE TYPE OF VIRTUAL CURRENCY SOLD OR PURCHASED;
(2) THE VALUE OF THE VIRTUAL CURRENCY SOLD OR PURCHASED,
INCLUDING THE REQUISITE EXCHANGE RATE FOR THE VIRTUAL CURRENCY;
(3) THE DATE AND TIME OF THE TRANSACTION;
(4) IDENTIFYING INFORMATION FOR THE VIRTUAL CURRENCY KIOSK;
(5) THE TOLL–FREE NUMBER FOR CUSTOMER SUPPORT; AND
(6)
ANY OTHER INFORMATION THAT THE COMMISSIONER REQUIRES
THROUGH REGULATION.
12–1205.
(A) A VIRTUAL CURRENCY KIOSK OPERATOR SHALL ENSURE THAT A
VIRTUAL CURRENCY KIOSK DISPLAYS ON–SCREEN DISCLOSURES BEFORE EACH
VIRTUAL CURRENCY SERVICE TRANSACTION THAT DISCLOSE ALL MATERIAL RISKS
GENERALLY ASSOCIATED WITH VIRTUAL CURRENCY IN CLEAR AND CONSPICUOUS
LANGUAGE.
(B) THE ON–SCREEN DISCLOSURES SHALL INCLUDE:
(1) A SCHEDULE OF FEES AND CHARGES THAT MAY BE ASSESSED;
(2) THE STATEMENT:
“VIRTUAL CURRENCY IS NOT MONEY OR LEGAL TENDER AND IS NOT BACKED OR
INSURED BY THE GOVERNMENT. VIRTUAL CURRENCY ACCOUNTS AND VALUE
BALANCES ARE NOT SUBJECT TO ANY PROTECTIONS FROM THE FEDERAL DEPOSIT
INSURANCE CORPORATION, NATIONAL CREDIT UNION ADMINISTRATION, OR
SECURITIES INVESTOR PROTECTION CORPORATION.”;
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WES MOORE, Governor Ch. 117
(3) THE STATEMENT:
“WARNING: LOSSES DUE TO FRAUDULENT OR ACCIDENTAL VIRTUAL CURRENCY
TRANSACTIONS ARE MAY NOT BE RECOVERABLE AND TRANSACTIONS IN VIRTUAL
CURRENCY ARE IRREVERSIBLE. VIRTUAL CURRENCY TRANSACTIONS MAY BE USED
BY SCAMMERS IMPERSONATING LOVED ONES, THREATENING JAIL TIME, AND
INSISTING YOU WITHDRAW MONEY FROM YOUR BANK ACCOUNT TO PURCHASE
VIRTUAL CURRENCY.”;
(4)
THE CONTACT INFORMATION FOR THE VIRTUAL CURRENCY KIOSK
OPERATOR, INCLUDING THE OPERATOR’S NAME, PHONE NUMBER, ADDRESS, AND
HOURS OF OPERATION;
(5) THE CURRENT EXCHANGE RATES FOR EACH TYPE OF VIRTUAL
CURRENCY ELIGIBLE TO BE SOLD OR PURCHASED AT THE VIRTUAL CURRENCY
KIOSK; AND
(5) (6)ANY OTHER INFORMATION THAT THE COMMISSIONER
REQUIRES BY REGULATION.
(C) THE VIRTUAL CURRENCY OPERATOR SHALL ENSURE THAT A PERSON
USING THE OPERATOR’S VIRTUAL CURRENCY KIOSK IS REQUIRED TO
ACKNOWLEDGE AND ACCEPT EACH DISCLOSURE BEFORE THE PERSON MAY RECEIVE
VIRTUAL CURRENCY SERVICES.
(D) THE COMMISSIONER SHALL ADOPT REGULATIONS ESTABLISHING THE
MINIMUM AMOUNT OF TIME THAT EACH DISCLOSURE MUST REMAIN ON THE SCREEN
BEFORE ADVANCING.
12–1206.
A VIRTUAL CURRENCY OPERATOR SHALL MAINTAIN LIVE CUSTOMER
SUPPORT THAT, AT A MINIMUM, IS:
(1) REACHABLE BY TELEPHONE AT A TOLL–FREE NUMBER; AND
(2) AVAILABLE MONDAY THROUGH FRIDAY BETWEEN 8 A.M. AND 6
P.M.
12–1207.
A VIRTUAL CURRENCY KIOSK OPERATOR SHALL ENSURE THAT THE VIRTUAL
CURRENCY KIOSK:
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Ch. 117 2025 LAWS OF MARYLAND
(1) OPERATES SOLELY FOR THE PURPOSE OF VIRTUAL CURRENCY
SERVICES; AND
(2) DOES NOT OPERATE AS AN AUTOMATED TELLER MACHINE AS
DEFINED UNDER § 1–401 OF THIS ARTICLE.
12–1208.
(A) THE COMMISSIONER MAY USE THE INVESTIGATIVE AND ENFORCEMENT
POWERS UNDER §§ 2–113 THROUGH 2–116 OF THIS ARTICLE TO ENFORCE THIS
SUBTITLE.
(B) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION, THE
COMMISSIONER MAY IMPOSE THE PENALTIES UNDER §§ 2–113 THROUGH 2–116 OF
THIS ARTICLE FOR A VIOLATION OF THIS SUBTITLE.
(2) THE COMMISSIONER MAY ASSESS AGAINST A VIRTUAL CURRENCY
KIOSK OPERATOR A CIVIL PENALTY NOT EXCEEDING $1,000 FOR EACH KNOWING
AND WILLFUL VIOLATION OF THIS SUBTITLE.
(3) EACH DAY THAT A VIOLATION OCCURS OR CONTINUES IS A
SEPARATE VIOLATION.
12–1207. 12–1209.
THE COMMISSIONER MAY SHALL ADOPT REGULATIONS TO CARRY OUT THIS
SUBTITLE.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2025.
Approved by the Governor, April 22, 2025.
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