Maryland (MD): Bitcoin and virtual-currency law
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.
Maryland (MD): Bitcoin and virtual-currency law
| Field | Value |
|---|---|
| Jurisdiction | US state: Maryland |
| Date checked | 2026-10-09 |
| Main regulator | Office of Financial Regulation (OFR, the Commissioner of Financial Regulation), Maryland Department of Labor |
| Money-transmitter law | Maryland Money Transmission Act (MTA), Fin. Inst. Art. § 12-401 et seq. CSBS: "Maryland Money Transmission Act", Full MTMA (via COMAR 09.03.14 per CSBS), effective 2023-12-11, Virtual Currency Title: No (CSBS) |
| Virtual currency covered? | Yes, per the OFR. Its kiosk advisory says money-transmitter licensing applies to kiosks capable of "money transmission (including the transmission of virtual currency)". |
| UMSA? / URVCBA? | No / No |
| Crypto ATM / kiosk law | Yes. SB 305 (2025), Chapter 117, Fin. Inst. § 12-1201 et seq. ("Subtitle 12. Virtual Currency Kiosks"). Approved 2025-04-22; effective 2025-07-01; registration required from 2026-01-01. Limits of $2,000 per day for a new user and $10,500 for an experienced user; fee cap of the greater of $5 or 15%; refund of fees on verified-fraudulent transactions. Amended by SB 741 (2026), Chapter 417, approved 2026-05-12, effective 2026-10-01. Regulations at COMAR 09.03.16. |
Summary
Maryland regulates both bitcoin businesses and kiosks:
- Bitcoin businesses: money-transmitter licensing covers transmission of virtual currency (OFR).
- Kiosks: a separate NMLS registration is required for kiosk operators and for each kiosk since 2026-01-01, under SB 305 (2025). Limits are $2,000 per day for new users and $10,500 for experienced users, fees are capped at 15%, and fees are refunded on verified fraud.
- SB 741 (2026): says kiosks may not provide ATM-like services, and widens the operator definition to include people who install kiosk software on devices.
- Studies, not investment: in 2026 Maryland created a Digital Asset and Blockchain Technology Task Force and blockchain real-property-title studies.
- Dead bills: a Strategic Digital Asset Reserve bill (HB 51) and a "Maryland Financial Innovation Act" on digital assets and staking (HB 859 / SB 759) died.
1. Money-transmitter licensing and virtual currency
- MTA, Fin. Inst. § 12-401 et seq. "Money transmitter" covers selling or issuing payment instruments or "transmitting monetary value to another by any means" (law-firm summary, Gordon Feinblatt).
- OFR advisory on kiosk registration (link, saved):
- "This registration is independent of Money Transmitter licensure requirements ... Maryland's Money Transmitter licensure requirements apply if your Maryland VCKs have the ability to offer money transmission services".
- The licence also applies to kiosks that facilitate "money transmission (including the transmission of virtual currency)".
- Operators can avoid money-transmitter licensing only by disabling money-transmission features and filing a declaration in NMLS.
- When Maryland's statute or regulations first expressly added virtual currency to "money transmission" was not pinned down in this pass (gap).
2. Virtual-currency-specific statutes and guidance
| Law or action | Status | Source |
|---|---|---|
| SB 305 (2025), Ch. 117: kiosk registration and regulation (Fin. Inst. §§ 12-1201 to 12-1209) | Approved 2025-04-22; effective 2025-07-01 | Chapter 117 (saved) |
| COMAR 09.03.16, "Virtual Currency Kiosks" (OFR regulations, including notice of fraud and fraudulent-transaction definitions) | In force (adopted after an emergency regulation) | Library of Maryland Regulations (saved) |
| SB 741 (2026), Ch. 417: kiosk alterations | Approved 2026-05-12; effective 2026-10-01 | Chapter 417 (saved) |
| HB 470 / SB 376 (2026), Chs. 548 and 549: Digital Asset and Blockchain Technology Task Force | Approved 2026-05-12 | HB 470 page |
| HB 810 / SB 168 (2026), Chs. 747 and 748: study of blockchain-based real-property title recordation | Approved 2026-05-26 (per tracker) | Bitcoin Laws tracker; Maryland General Assembly |
3. Crypto ATM / kiosk law
SB 305 (2025), Chapter 117, effective 2025-07-01 (chapter text, saved):
- Registration: a "virtual currency kiosk operator" must register with the OFR. No one may operate a kiosk in Maryland on or after 2026-01-01 unless registered (OFR advisory). Registration is through NMLS: $2,000 per operator and $200 per kiosk, renewed annually.
- Limits: a kiosk may not accept or dispense, for one person on one day, more than $2,000 for a new user or $10,500 for an experienced user in cash, including prepaid access, or the credit equivalent. (Earlier drafts had a flat $1,000.)
- Fee cap: an operator "may not impose a fee in excess of the greater of: (i) $5; or (ii) 15% of the amount of a virtual currency service transaction".
- Refunds: the operator "shall refund any fee imposed on a transaction that is verified as fraudulent in a manner established by the Commissioner through regulation". Only fees are refunded, not principal.
- Know your customer: information must be collected before transactions.
- Penalties: civil penalty of up to $1,000 per knowing and willful violation, with each day a separate violation, plus the general penalties in §§ 2-113 to 2-116.
SB 741 (2026), Chapter 417, effective 2026-10-01:
- "Virtual currency kiosk operator" now includes "a person who installs or operates certain software that enables a certain device to provide certain virtual currency services".
- "Virtual currency services" excludes cash in connection with credit, deposit or convenience accounts.
- Operators must ensure the kiosk "does not ... provide the same services as an automated teller machine".
AARP summary: Maryland has daily transaction limits, refund provisions, receipts and live customer support (AARP data).
4. Tax treatment
No Comptroller crypto guidance was retrieved (gap).
5. Notable enforcement
- None retrieved for Maryland (gap).
- Maryland is a participating state (Appendix A); its share of the $2.2M administrative penalty is $64,997.91 (Appendix B) Coinme consent order, App. A–B (completeness check, 2026-10-09).
6. Bills, 2026 regular session
Statuses come from mgaleg.maryland.gov, checked 2026-10-09. The session ended in April 2026.
| Bill | Subject | Status |
|---|---|---|
| SB 741 | Kiosk alterations | Ch. 417, approved 2026-05-12 |
| HB 470 / SB 376 | Digital Asset and Blockchain Technology Task Force | Chs. 548 / 549, approved 2026-05-12 |
| HB 810 / SB 168 | Blockchain real-property title study | Chs. 747 / 748 (per tracker) |
| HB 51 | Strategic Digital Asset Reserve Act of Maryland | Hearing held 2026-02-03; died |
| HB 859 / SB 759 | Maryland Financial Innovation Act of 2026 (digital assets and staking regulation) | Hearings in March; died |
| HB 549 / SB 931 | Public Ethics Law: virtual currency disclosure | Hearings in February; died (per tracker) |
| HB 823 | Blockchain real-property title pilot | Hearing cancelled; died |
| SB 305 (2025) | Kiosks (base law) | Ch. 117 (2025) |
Pending: none. The 2027 session begins in January 2027.
7. Contested and fringe claims
- Reserve bills in a blue state. HB 51 drew attention as a "Strategic Digital Asset Reserve" bill in a Democratic-controlled legislature. It got a hearing but no vote. Supporters cite the federal Strategic Bitcoin Reserve executive order; opponents' views were not retrieved.
- Fee-only refunds. Maryland refunds only fees on verified fraud, not the principal. Consumer advocates elsewhere (Arizona, Alabama, Florida) secured full-principal refunds for new users. Whether Maryland's limited refund is adequate is disputed; no Maryland-specific critique was retrieved.
Saved sources (sources/states/md/)
See sources/states/md/INDEX.md.
Gaps
- When and how "virtual currency" entered the Maryland MTA or its regulations (statute citation).
- Comptroller tax guidance.
- OFR enforcement actions.