Washington — Bitcoin and virtual-currency law

Bitcoin Research — Law, Regulation, Markets & Origins (2026)

Legislation

2026-10-09

Document text

Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.

Washington — Bitcoin and virtual-currency law

  • Jurisdiction: State of Washington (US)
  • Date checked: 2026-10-09 (all statuses below were checked on this date unless another date is given)
  • Regulators: Washington State Department of Financial Institutions (DFI), Division of Consumer Services (money services); Department of Revenue (DOR)
  • Legislature: 2026 short session ended March 2026; 2027 long session starts January 2027.
  • Saved primary sources: sources/states/wa/ (see sources/states/wa/INDEX.md)

At a glance

Topic Washington position Key cite Status (checked 2026-10-09)
Money-transmitter licence for virtual currency Yes — virtual currency is covered. "Money transmission" means receiving money "or its equivalent value (equivalent value includes virtual currency)" to transmit RCW 19.230.010(18), (30); 2017 c 30 (SB 5031) In force [S1][S2]
Model law Uniform Money Services Act — RCW 19.230.900: "This chapter may be known and cited as the uniform money services act" (2003 c 287, effective 2003-10-01). Not an MTMA state per CSBS; not a URVCBA state (URVCBA unverified) RCW 19.230; CSBS [S1][S10]
Virtual-currency-specific duties Third-party security audit for applicants that store virtual currency for others (RCW 19.230.040(5)); mandatory disclosures to customers (RCW 19.230.370) RCW 19.230 In force [S1]
Crypto ATMs / kiosks No kiosk-specific statute. Kiosk operators are licensed under RCW 19.230. Kiosk bills HB 1268 and SB 5280 failed when the 2026 session adjourned HB 1268 / SB 5280 Failed [S9]
Enforcement Very active against kiosk operators in 2025–2026: Coinme (cease-and-desist 2025; multistate consent order 2026-10-08 to close kiosks), Bitcoin Depot (2026-06-11 charges), CoinFlip (2026-09-03 charges) DFI press releases See section 5 [S4][S5][S6][S7]
Tax No personal income tax on wages, but a 7% capital gains excise tax on long-term capital assets, plus 2.9% on gains over $1 million from 2025; DOR 2019 statement: Bitcoin payments are consideration for sales tax; mining income subject to B&O tax RCW 82.87.040; DOR interim statement 2019-08-20 In force [S3][S8]

1. Money-transmitter licensing of virtual currency

  • RCW 19.230 (money services; enacted 2003 c 287 and amended many times). Definitions in RCW 19.230.010 (saved full chapter and definitions page):
  • (18) "Money transmission" "means receiving money or its equivalent value (equivalent value includes virtual currency) to transmit, deliver, or instruct to be delivered to another location … by any means." [S1][S2]
  • (30) "Virtual currency" "means a digital representation of value used as a medium of exchange, a unit of account, or a store of value, but does not have legal tender status as recognized by the United States government," excluding the software or protocols when not used as a medium of exchange. Source note: 2017 c 30 s 1. [S2]
  • 2017 c 30 (SB 5031, 2017) is the session law that brought virtual currency expressly into the act (per the RCW history notes). [S1][S2] The bill itself was not downloaded (gap).
  • Virtual-currency licensee extras:
  • Applicants whose business model stores virtual currency on behalf of others must provide a third-party security audit of all electronic information and data systems (RCW 19.230.040(5)). [S1]
  • RCW 19.230.370 "Virtual currency licensees — Disclosures": licensees must give a schedule of all fees and charges and other listed disclosures to anyone using their services. [S1]
  • Surety bond for money transmitters: minimum $10,000, maximum $550,000, based on prior-year volume (RCW 19.230.050). [S1]
  • MTMA: CSBS lists Washington as not having enacted the MTMA (table dated 2026-10-08). [S10]
  • Uniform Money Services Act: RCW 19.230.900 — "This chapter may be known and cited as the uniform money services act" (2003 c 287 s 1; effective 2003-10-01 per RCW 19.230.901); RCW 19.230.903 calls for uniform construction with other enacting states. [S1]

2. Other virtual-currency-specific statutes and guidance

  • No Washington digital-asset property statute, DAO statute, or Bitcoin-reserve statute was found (none enacted, per NCSL lists checked). [S9]
  • 2025 SB 5316 (unclaimed property) was enacted; NCSL lists it among crypto bills, but its virtual-currency content was not checked (gap). [S9]

3. Crypto ATM / kiosk law

  • No kiosk statute. Kiosk operators must hold a money-transmitter licence under RCW 19.230, and DFI has used that licence (and the disclosure rules in RCW 19.230.370) to bring the actions in section 5. [S1][S4][S5][S6]
  • Failed bills (2025–2026 biennium): HB 1268 "Concerning virtual currency transaction kiosks" and SB 5280 "Protecting consumers of virtual currency kiosks" — both carried over from 2025 and failed when the 2026 session adjourned. [S9]
  • Market effect: Coinme, which ran Bitcoin kiosks inside Coinstar machines, agreed on 2026-10-08 to shut down its crypto kiosks by year-end in all participating states. [S4]

4. Tax treatment

  • Capital gains excise tax, RCW 82.87.040: from 2022-01-01, 7% of an individual's Washington capital gains on the sale or exchange of long-term capital assets; from 2025-01-01, an additional 2.90% on the portion over $1,000,000. [S8] DOR's capital gains page lists "stocks, bonds, business interests, or other investments and tangible assets" and a 2025 standard deduction of $278,000, but does not mention cryptocurrency by name. [S11] Whether long-term Bitcoin gains are taxed appears to follow from the statute's general "long-term capital asset" definition, but DOR has not been found saying so explicitly (unverified).
  • DOR "Interim Statement Regarding Bitcoin: Payments, Mining, and Investment Income," 2019-08-20 (saved): [S3]
  • Bitcoin received as payment is consideration; retail sales tax is due on the dollar value at the time of sale.
  • Mining rewards and fees are gross income subject to B&O tax (service and other activities), measured at value when received.
  • Individuals investing for themselves are not taxed on gains under B&O; financial businesses (brokers, banks, lenders) report investment gains as B&O income.
  • Wealth-tax bills (HB 1319, HB 2046, SB 5797) that would have taxed financial intangibles, including cryptocurrency, failed in 2026. [S9]

5. Notable enforcement (DFI)

Date Firm Action Key allegations / terms Source
2025-12-01 (reported 2025-12-04) Coinme, Inc. (Seattle) Temporary cease-and-desist; statement of charges Turned unredeemed customer voucher funds (over $8 million) into revenue; below required tangible net worth 2020–2025; inaccurate reports; poor disclosure of redemption times. DFI sought licence revocation, a $300,000 fine and possible 10-year bans for the company and CEO Neil Bergquist [N1]
2026-06-11 Bitcoin Depot Operating, LLC; responsible individual Brandon Taylor Mintz Statement of charges Prices up to 42% above market; AML/BSA, KYC and fraud-monitoring failures; no required fee disclosures in more than 30,000 Washington transactions; seeks licence revocation, industry bans, $1.5 million fine against the individual [S5]
2026-09-03 GPD Holdings, LLC d/b/a CoinFlip; responsible individual Benjamin Weiss Statement of charges AML/BSA failures, 6–9 month alert backlog, missed federal reporting deadlines, virtual-currency disclosure violations, late refunds, inaccurate cost disclosures, failure to enforce transaction limits; over 50% of its Washington business from seniors; seeks revocation, industry bans and a $1,029,600 fine [S6]
2026-10-08 Coinme, Inc. Multistate consent order (34 agencies in all, including Washington: 32 states, DC and Puerto Rico; Washington's penalty share is $261,658.39 plus $75,000 in costs, and it directs $150,000 to financial-literacy programs and investigation costs; order, App. A–C, E, completeness check) Shut down crypto kiosks by year-end; independent review of AML program; pay $2.5 million in penalties and costs (news: a further $4 million if non-compliant). Resolves DFI's 2025 statement of charges [S4][N2]

Bitcoin Depot and CoinFlip have the right to request hearings; outcomes were not found (gap).

6. Pending and recently failed bills

Bill Subject Status (checked 2026-10-09) Source
HB 1268 Virtual currency transaction kiosks Failed — adjourned 2026 [S9]
SB 5280 Protecting consumers of virtual currency kiosks Failed — adjourned 2026 [S9]
HB 1319 / SB 5797 / HB 2046 Wealth tax on financial intangibles (incl. crypto) Failed — adjourned 2026 [S9]
HB 2515 / SB 6171 "Emerging large energy use facilities" (data centers, possibly mining) Failed — adjourned 2026 [S9]

Nothing is pending until the 2027 session; kiosk legislation is likely to return given DFI's actions (forecast, not a fact).

7. Contested and fringe claims (flagged, not endorsed)

  • Kiosk business model. DFI alleges CoinFlip's model "poses a heightened risk to seniors being scammed" and that Bitcoin Depot charged up to 42% over market; these are allegations in charging documents, not findings — both companies can contest them. [S5][S6]
  • "Washington is hostile to crypto." Industry commentators point to the capital gains tax, B&O treatment of mining and DFI's kiosk actions; the state frames them as consumer protection. Characterization, not a verifiable fact.
  • Mining. Washington's cheap Columbia River hydropower drew miners (e.g., Chelan and Douglas counties); local utilities later set special rates or moratoria (general knowledge; not re-verified in this check).

Sources

Saved full copies are in sources/states/wa/. News items are summaries only.

  • [S1] Washington State Legislature, RCW 19.230 (full chapter). https://app.leg.wa.gov/RCW/default.aspx?cite=19.230&full=true — retrieved 2026-10-09 — saved wa-rcw-19-230-uniform-money-services-act.html
  • [S2] Washington State Legislature, RCW 19.230.010 (definitions). https://app.leg.wa.gov/RCW/default.aspx?cite=19.230.010 — saved wa-rcw-19-230-010-definitions.html
  • [S3] Washington Department of Revenue, "Interim Statement Regarding Bitcoin: Payments, Mining, and Investment Income," 2019-08-20. https://dor.wa.gov/laws-rules/interim-statement-regarding-bitcoin-payments-mining-and-investment-income — saved wa-dor-interim-statement-bitcoin-2019-08-20.html
  • [S4] Washington DFI press release, 2026-10-08, "Washington State DFI Enters Multi-State Consent Order with Coinme, Inc." https://dfi.wa.gov/news/press/washington-state-dfi-enters-multi-state-consent-order-coinme-inc — read 2026-10-09
  • [S5] Washington DFI press release, 2026-06-11, "Washington State DFI Takes Action Against Bitcoin Depot Operating, LLC." https://dfi.wa.gov/news/press/washington-state-dfi-takes-action-against-bitcoin-depot-operating-llc — read 2026-10-09
  • [S6] Washington DFI press release, 2026-09-03, "Washington State DFI Takes Action Against CoinFlip." https://dfi.wa.gov/news/press/washington-state-dfi-takes-action-against-coinflip — read 2026-10-09
  • [S7] Washington DFI, press-release index. https://dfi.wa.gov/news/press-releases — read 2026-10-09
  • [S8] Washington State Legislature, RCW 82.87.040 (capital gains tax imposed). https://app.leg.wa.gov/RCW/default.aspx?cite=82.87.040 — saved wa-rcw-82-87-040-capital-gains-tax-rate.html
  • [S9] NCSL, 2025 and 2026 cryptocurrency legislation pages (2026 page updated 2026-03-25). https://www.ncsl.org/financial-services/cryptocurrency-digital-or-virtual-currency-and-digital-assets-2026-legislation — read 2026-10-09
  • [S10] CSBS, MTMA State Enactments table (PDF dated 2026-10-08). https://www.csbs.org/sites/default/files/external-link-files/10.8.26%20MTMA%20State%20Enactments.pdf
  • [S11] Washington Department of Revenue, "Capital gains tax" page. https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax — read 2026-10-09
  • [N1] Yahoo Finance, "Regulators Order Bitcoin ATM Giant Coinme to Repay $8M, Halt Operations," 2025-12-04. https://finance.yahoo.com/news/regulators-order-bitcoin-atm-giant-115434086.html — summary only
  • [N2] ABA Banking Journal, "Crypto exchange agrees to shut down 'crypto ATMs' as part of settlement," 2026-10-08. https://bankingjournal.aba.com/2026/10/crypto-exchange-agrees-to-shut-down-crypto-atms-as-part-of-settlement/ — summary only