Kansas (KS): Bitcoin and virtual-currency law

Summary

Kansas does not treat bitcoin itself as "money". Since 2014 the OSBC's position has been:

• transmitting cryptocurrency, crypto-to-crypto exchanges, two-party sales and custody are not licensable money transmission;
• third-party exchanges involving dollars generally are.

In 2026 Kansas folded crypto kiosks into the KMTA (HB 2591): operators need a money-transmission licence, charges are capped, new-customer transactions are tightly limited, and refunds are available. Other 2025–2026 bills all died:

• SB 34 (KPERS bitcoin ETP investment);
• SB 352 (bitcoin and digital-assets reserve fund);
• SB 310 (crypto campaign contributions).

Kansas was one of the 34 states in the October 2026 Coinme settlement.

1. Money-transmitter licensing and virtual currency

OSBC Guidance MT 2014-01, "Regulatory Treatment of Virtual Currencies Under the Kansas Money Transmission Act", dated 2014-06-06 and updated 2021-05-18 and 2025-01-02. The OSBC says it remains applicable under the new KMTA and that it was modelled on Texas Department of Banking Supervisory Memorandum 1037 (PDF, saved). Its main points:

• "cryptocurrencies are not covered by the KMTA because they are not considered 'money' or 'monetary value.' Since the KMTA does not apply to transmission of decentralized cryptocurrencies, an entity engaged solely in the transmission of such currency would not be required to obtain a license".
• "Exchange of cryptocurrency for sovereign currency between two parties is not money transmission".
• "Exchange of one cryptocurrency for another cryptocurrency is not money transmission".
• "Transfer of cryptocurrency by itself is not money transmission ... This includes intermediaries ... and entities that, akin to depositories, hold cryptocurrencies on behalf of customers."
• "Exchange of cryptocurrency for sovereign currency through a third-party exchanger is generally considered money transmission".

HB 2591 (2026) amends "money transmission" in the KMTA to include virtual-currency kiosk activity (OSBC notice).

2. Virtual-currency-specific statutes and guidance

3. Crypto ATM / kiosk law

HB 2591 (2026), Virtual Currency Kiosk Consumer Protection Act, effective 2026-07-01 (enrolled text, saved):

• Licensing: kiosk operators must be licensed money transmitters. The act is part of the KMTA.
• Charges cap (New Sec. 10): direct and indirect charges may not exceed "the greater of ... (1) $5 ... or (2) 18% of the full money transmission amount". Spreads must be disclosed and labelled as a "spread fee".
• Limits:
• The initial transaction is capped at $1,000.
• Within 14 days of the initial transaction: up to $1,000 per day, only one transaction within 72 hours of the initial one, and a maximum of $10,000 in total over the first 14 days.
• After 14 days: up to $10,500 per day.
• Refunds:
• Anyone may request a full refund of the initial transaction for any reason within the holding period, unless a legal hold applies.
• Existing customers may request a refund of charges.
• For the initial transaction, or any transaction within 14 days of it, the operator must refund the full amount plus fees if the person reports the fraud to the Commissioner, the AG or law enforcement, subject to the conditions in the text.
• Other duties: disclosures, receipts (including the full wallet address), blockchain analytics, live customer service, and quarterly location reporting.
• Investigations: the AG and law enforcement may investigate fraudulent money transmission and report to the Commissioner.
• Early use: the Sedgwick County DA's Consumer Protection Division used HB 2591 to get a refund for a Wichita scam victim (KSN).

HB 2515 (2026), an earlier, separate kiosk act with limits and charges caps:

• Vetoed by Gov. Laura Kelly. The House made no motion to reconsider, so the veto was sustained (2026-04-10 per the Bitcoin Laws tracker snapshot; bill page).
• The veto message was not retrieved. Why the Governor vetoed HB 2515 while signing HB 2591 is unverified.

4. Tax treatment

No Kansas Department of Revenue crypto guidance was retrieved (gap). Kansas income tax starts from federal AGI.

5. Notable enforcement

6. Bills, 2025–2026 Legislature

Statuses come from kslegislature.gov bill pages, checked 2026-10-09. The 2026 session has adjourned and the biennium is over.

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

7. Contested and fringe claims

• The "not money" doctrine. Kansas, like Texas, treats decentralized crypto as outside money-transmission law. Critics say this leaves custodial crypto businesses unlicensed; the industry calls it legally correct. Our account of both positions is general; we did not retrieve specific statements.
• Refund "for any reason". HB 2591 lets a person reverse the initial kiosk transaction for any reason within the holding period. This is among the most consumer-protective rules nationally (our assessment). Operators can be expected to argue it invites abuse; we found no published operator response.

Saved sources (sources/states/ks/)

See sources/states/ks/INDEX.md.

Gaps

• The HB 2591 signing date and HB 2515 veto message (the bill pages' history tables load by script).
• The current text of K.S.A. 9-555.
• Department of Revenue guidance.