Idaho (ID): Bitcoin and virtual-currency law

Summary

Idaho regulates bitcoin businesses lightly:

• The money-transmitter statute does not name virtual currency.
• The DOF requires a licence only where a virtual-currency exchanger takes fiat money for later delivery to a third party.
• Digital-asset custody is possible through trust companies authorized under the Idaho Trust Institutions Act.

In 2026 the legislature passed a strict kiosk bill (S1359a). It would have set a $2,000-per-24-hours limit and a $10,000 30-day cap for new customers, a settlement delay for first transactions, and misdemeanor penalties. The Governor vetoed it as poorly drafted, while calling its intent "commendable". Stablecoin ("FAST Act") and "programmable money" bills also failed. There are no state bitcoin-reserve laws, and no crypto bill appears in the 2025 legislation index.

1. Money-transmitter licensing and virtual currency

• Statute: Idaho Code § 26-2902(11): "Money transmission" means "the sale or issuance of payment instruments or engaging in the business of receiving money for transmission or the business of transmitting money ... by any and all means including ... payment instrument, wire, facsimile or electronic transfer." There is no virtual-currency language.
• DOF interpretation (DOF money transmitters page, saved): "Virtual Currency Exchangers. If you act as a virtual/digital currency exchanger and accept legal tender (e.g., government backed/issued 'fiat' currencies) for later delivery to a third party in association with the purchase of a virtual currency, then you must be licensed as a money transmitter with the Department of Finance."
• Our reading: a direct two-party sale of bitcoin for cash, where the seller delivers its own bitcoin, may fall outside licensing in Idaho. This contrasts with Florida after Espinoza.
• Digital-asset custodians: the DOF's Bank Section supervises "digital asset custodians that have been authorized, pursuant to the provisions of the Idaho Trust Institutions Act, to engage in the custody and safekeeping of digital assets." The Securities Bureau also supervises them for money transmission (DOF page).

2. Virtual-currency-specific statutes and guidance

3. Crypto ATM / kiosk law

No kiosk law is in force. AARP lists Idaho as "Bill introduced" (AARP data).

S1359a (2026), Virtual Currency Kiosk Fraud Prevention Act (would have added Idaho Code § 28-5401 et seq.):

• Legislative history:
• Passed the Senate.
• Passed the House (the roll-call "AYES" list is on the bill page).
• Delivered to the Governor at 6:50 p.m. on 2026-04-01.
• Vetoed. The veto letter is dated 2026-04-08; the legislature's record shows "Returned from Governor vetoed on 04/28/26" (bill page).
• What the engrossed bill (S1359E1, saved) would have required:
• A licence under the Money Transmitters Act.
• Disclosures, receipts and customer service.
• Making wallets linked to overseas exchanges non-accessible to US users.
• For new customers: a limit of $2,000 per 24 hours, a cumulative limit of $10,000 in the first 30 days, and a settlement delay for the first transaction.
• Fraud and anti-money-laundering programmes, refunds, and quarterly reporting.
• Information-sharing with law enforcement.
• A misdemeanor for willful violations (fine of up to $1,000).
• Governor Brad Little's veto letter (saved; PDF):
• "The intent of this legislation is commendable. Virtual currency kiosks have become a preferred tool for scammers targeting Idaho seniors."
• "However, Senate Bill 1359a contains critical drafting deficiencies that would undermine its own purpose. Some definitions are defined too broadly or left ambiguous."
• He urged the legislature "to work with the Idaho Department of Finance to revisit this bill with tighter definitions, clear enforcement standards, and a realistic implementation framework."
• S1333 (2026) was an earlier version, referred to State Affairs, and died.
• Local action: Treasure Valley agencies (Boise area) are working on kiosk fraud (MSN headline; not retrieved).

4. Tax treatment

No Idaho State Tax Commission crypto guidance was retrieved (gap). Idaho income tax starts from federal taxable income.

S1440 (2026) would have imposed an excise tax on international money transmissions. It was referred to Local Government & Taxation and died.

5. Notable enforcement

• None retrieved for Idaho (gap).
• An Inc. article (link) features Idaho gas-station workers confronting kiosk fraud. It is journalism, not enforcement.
• Idaho is a participating state (Appendix A); its share of the $2.2M administrative penalty is $10,000.00 (Appendix B) Coinme consent order, App. A–B (completeness check, 2026-10-09).

6. Bills, 2026 session

Statuses come from legislature.idaho.gov bill pages, checked 2026-10-09. The 2026 session has adjourned.

Pending: none. The 2027 session begins in January 2027.

7. Contested and fringe claims

• "Programmable money" bills. H0617, H0709 and H0750 dealt with "programmable money" and consumer payment rights. We did not read their texts. Such bills are often framed as defences against central bank digital currencies or restrictions on how money may be spent. The claimed threat from a CBDC is speculative, because no US CBDC exists.
• The kiosk veto. Advocates such as AARP wanted the bill. The Governor vetoed it on drafting grounds, not on policy. Some commentators may read the veto as industry-friendly; the letter itself gives only technical reasons.

Saved sources (sources/states/id/)

See sources/states/id/INDEX.md.

Gaps

• State Tax Commission crypto guidance.
• Idaho crypto enforcement actions.
• The texts of the stablecoin and programmable-money bills were not reviewed.
• Why the veto letter is dated 2026-04-08 while the legislature's record shows 2026-04-28 is unexplained.