VirginiaHB6652026 Regular SessionHouseWALLET

Financial institutions and services; virtual currency kiosk operators, license required, penalties.

Sponsored By: Michelle Lopes Maldonado (Democratic)

Signed by Governor

Summary

Financial institutions and services; virtual currency kiosk operators; license required; penalties. Establishes requirements for the operation of virtual currency kiosks, as defined in the bill, including a requirement that a virtual currency kiosk operator obtain licensure with the State Corporation Commission. The bill requires operators to file annual and quarterly reports, provide certain disclosures, and take reasonable steps to detect and prevent fraud and money laundering. The bill prohibits operators from accepting transactions above specified daily and monthly limits and establishes a maximum transaction charge of 18 percent of the value of such transaction. A person who violates the bill's provisions is subject to a fine of up to $1,000 per violation as well as the existing enforcement provisions of the Virginia Consumer Protection Act. This bill is identical to SB 489.

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 4 benefits, 3 costs, 3 mixed.

Kiosk fraud victims get fee refunds

Beginning July 1, 2027, fraud victims can recover kiosk transaction fees, not the full amount sent. Users must notify the operator within 90 days and provide a police report, government report, or sworn statement within 120 days. Both deadlines run from the transaction date; refunds use the original currency and apply despite earlier user acknowledgments. Operators must also maintain a state-approved surety bond of $1,000 to $25,000 to cover legal and contract duties. People harmed by noncompliance can seek bond payments, but total recovery cannot exceed the bond amount.

Kiosk users get transaction fee caps

Beginning July 1, 2027, virtual currency kiosk charges cannot exceed 18% of a single transaction’s value. Charges include price spreads and transaction, wallet creation, exchange, and transfer fees. The cap also includes charges related to the law’s annual regulatory fee.

Kiosk users get warnings and support

Beginning July 1, 2027, kiosks must clearly show terms, charges, exchange rates, risks, and owner contacts in users’ chosen language. Risk notices include the lack of government or FDIC backing; users must acknowledge required disclosures at each interaction. A readable scam warning must include the operator’s toll-free number, which must also appear on the kiosk or screen. Operators must provide live support throughout operating hours, including 8 a.m. to 10 p.m. daily. Ads cannot mislead, must use the licensed name, and cannot call virtual currency kiosks “ATMs” or “automated teller machines.”

Kiosk users gain stronger enforcement protections

Beginning July 1, 2027, kiosk-law violations are prohibited practices under Virginia’s Consumer Protection Act. The Commission can suspend or revoke licenses for listed violations, fraud judgments, unpaid fees, refused examinations, or ignored orders. Specified senior staff and owners’ acts count as the operator’s acts. It can order violations stopped, including by people outside Virginia, and impose up to $1,000 per separate violation after proceedings. Urgent stop orders can precede a hearing, with an expedited hearing afterward. The Attorney General can seek court orders, damages, available restitution, attorney fees, and costs without a Commission referral. Courts identify people entitled to relief within 180 days after a permanent stop order; local governments can adopt stricter kiosk rules.

Kiosk operators must report business activity

Beginning July 1, 2027, operators must keep separate business records at licensed offices and answer state requests by the stated deadline. Without a stated deadline, responses and materials are due within 30 days. Annual sworn reports are due March 31 for the prior year; location reports are due within 45 days after each quarter. Reports cover revenue, transactions, complaints, refunds, virtual currency addresses, suspicious-activity totals, and transactions declined for suspected illegal activity. Listed bankruptcies, regulatory proceedings, known felony cases, and consumer-protection lawsuits require notice within 15 days. Collected data is generally confidential, and the state must publish an annual analysis of combined data.

Kiosk operators pay for state oversight

Beginning July 1, 2027, the state must examine each kiosk licensee at least once every three years. Operators must provide access to locations and records; agreements with third-party hosts must guarantee state access to kiosks. Operators pay an annual state-set fee based on business volume and oversight costs. Fees are assessed by August 1 and payable to the State Treasurer by September 1. Out-of-state examinations also require travel and reasonable living expenses or an approved daily allowance, payable within 30 days of an itemized bill.

Kiosk owners face approval and notices

Beginning July 1, 2027, kiosk licenses cannot be transferred, and kiosks must use the name on the license. Operators must report kiosk openings, moves, removals, or deactivations within 10 days and report specified leadership changes. Acquiring 25% or more of voting shares or other ownership generally requires prior state approval, information, and an application fee. Approval depends on fitness standards. Exemptions cover specified licensed or commonly owned buyers and transfers by inheritance, survivorship, or operation of law; notice remains due within 30 days after closing.

Kiosk fraud checks require personal information

Beginning July 1, 2027, operators must check identity before accepting payment for every attempted transaction. Users must use their true identity and provide a government ID copy, name, birth date, phone, address, and email. Operators must maintain written fraud and money-laundering controls and use blockchain tracing software to detect risky activity. They must block wallets linked to overseas exchanges unavailable to U.S. users, provide yearly staff training materials, and allow staff to warn users. Operators must monitor a government contact line and, after a qualifying subpoena, share requested trace findings and help fraud investigations.

Kiosk limits add time to cancel

Beginning July 1, 2027, each kiosk user faces a $5,000 daily limit and a $10,000 monthly limit. A new user’s transaction cannot exceed $2,000 per day, in dollars or the equivalent virtual currency. Operators must hold each new-user transaction for at least 48 hours before completion. During the hold, new users can cancel and get a full refund.

Kiosk operators need screened state licenses

Beginning July 1, 2027, operators need a State Corporation Commission license to offer transactions or locate kiosks in Virginia. Unlicensed transactions are void, and related charges cannot be collected or kept. Applicants must file sworn ownership and location information, pay a nonrefundable state-set application fee, and meet fitness and bond requirements. The Commission must deny applications that fail the required standards. It must accept applications by March 1, 2027, can investigate them early, and begins issuing licenses July 1, 2027.

Sponsors & Cosponsors

Sponsor

  • Michelle Lopes Maldonado

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 292 • No: 29

House vote • 3/4/2026

Senate substitute agreed to by House

Yes: 84 • No: 10

Senate vote • 3/4/2026

Commerce and Labor Substitute agreed to

Yes: 0 • No: 0

Senate vote • 3/4/2026

Passed Senate with substitute

Yes: 40 • No: 0

Senate vote • 3/3/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 3/3/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote • 3/3/2026

Reported from Finance and Appropriations

Yes: 15 • No: 0

Senate vote • 2/23/2026

Reported from Commerce and Labor with substitute and rereferred to Finance and Appropriations

Yes: 13 • No: 0 • Other: 1

House vote • 2/6/2026

Read third time and passed House

Yes: 84 • No: 13

House vote • 2/2/2026

Reported from Communications, Technology and Innovation with substitute

Yes: 16 • No: 6

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0654)

    4/13/2026Governor
  2. Approved by Governor-Chapter 654 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (HB665)

    4/6/2026House
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/14/2026Governor
  5. Enrolled Bill communicated to Governor on March 14, 2026

    3/14/2026House
  6. Signed by Speaker

    3/12/2026House
  7. Bill text as passed House and Senate (HB665ER)

    3/11/2026House
  8. Enrolled

    3/11/2026House
  9. Signed by President

    3/11/2026Senate
  10. Senate substitute agreed to by House (84-Y 10-N 0-A)

    3/4/2026House
  11. Passed Senate with substitute (40-Y 0-N 0-A)

    3/4/2026Senate
  12. Commerce and Labor Substitute agreed to

    3/4/2026Senate
  13. Engrossed by Senate - committee substitute

    3/4/2026Senate
  14. Read third time

    3/4/2026Senate
  15. Passed by for the day Block Vote (Voice Vote)

    3/3/2026Senate
  16. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    3/3/2026Senate
  17. Rules suspended

    3/3/2026Senate
  18. Reported from Finance and Appropriations (15-Y 0-N)

    3/3/2026Senate
  19. Fiscal Impact Statement from State Corporation Commission (HB665)

    3/2/2026House
  20. Committee substitute printed 26108481D-S1

    2/24/2026Senate
  21. Senate committee offered

    2/23/2026Senate
  22. Reported from Commerce and Labor with substitute and rereferred to Finance and Appropriations (13-Y 0-N 1-A)

    2/23/2026Senate
  23. Referred to Committee on Commerce and Labor

    2/9/2026Senate
  24. Constitutional reading dispensed (on 1st reading)

    2/9/2026Senate
  25. Read third time and passed House (84-Y 13-N 0-A)

    2/6/2026House

Bill Text

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