VirginiaSB4892026 Regular SessionSenateWALLET

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

Sponsored By: Saddam Azlan Salim (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 HB 665.

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 4 benefits, 3 costs, 5 mixed.

Fraud victims can recover kiosk fees

Beginning July 1, 2027, operators must refund fees from fraud-related kiosk transactions, whether you authorized the transaction or not. You must notify the operator within 90 days after the transaction. Within 120 days after the transaction, you must submit a police report, government agency report, or sworn statement. Refunds cover the fees paid, in the original currency, even if you acknowledged the transaction warnings. This rule does not guarantee repayment of the full amount lost.

Kiosk users get an 18% charge cap

Beginning July 1, 2027, total kiosk charges cannot exceed 18% of a transaction's value. Charges include fees, exchange-price markups, and wallet, exchange, and transfer costs. The cap also includes charges tied to the operator's required annual state fee.

Kiosk users get warnings and live help

Beginning July 1, 2027, each kiosk interaction requires clear terms in your chosen language and your acknowledgment. Details include charges, exchange rates, scam warnings, owner and fraud-reporting contacts, and currency risks. Risk notices must explain the lack of U.S. government backing, legal-tender status, and specified federal protections. Kiosks must display scam warnings and toll-free numbers, with live help throughout operating hours, including 8 a.m.–10 p.m. daily. Operators must supply annual staff training materials, allow staff scam warnings, use their licensed name, avoid misleading ads, and never call kiosks ATMs.

Kiosk users gain stronger enforcement protections

Beginning July 1, 2027, kiosk-rule violations also trigger Virginia Consumer Protection Act enforcement. The State Corporation Commission can suspend or revoke licenses for violations, fraud-related findings, denied examinations, unpaid fees, or ignored orders. It can order violations stopped, act without a prior hearing when immediate public protection is needed, and reach out-of-state violators. It can impose up to $1,000 per separate violation; the Attorney General can seek court orders, damages, legally available restitution, and legal costs. Local governments can keep or adopt stricter kiosk rules, and enforcement does not guarantee a payment to each affected user.

Kiosk operators and hosts must allow inspections

Beginning July 1, 2027, the State Corporation Commission must examine each licensed operator at least once every three years. It can investigate relevant business affairs, premises, and records. Relevant owners and staff must provide demanded access and information. Contracts with businesses hosting kiosks must give the state full access to each kiosk and its nearby area.

Kiosk operators face ownership and location rules

Beginning July 1, 2027, licenses cannot be transferred, and kiosks can display only the licensed legal or business name. Operators must report kiosk openings, moves, removals, deactivations, and specified leadership changes within 10 days, including new leaders' names, addresses, and positions. Acquiring at least 25% of voting shares or ownership generally requires prior state approval, required information, and a fee. The state must decide completed applications within 60 days unless it extends review and explains why. Transfers involving licensed operators, common ownership, inheritance, survivorship, or operation of law are exempt; specified exempt deals require notice within 30 days after closing.

Kiosk operators pay new regulatory fees

License applicants must pay a state-set, nonrefundable application fee, with no refund when a license is surrendered, suspended, or revoked. Beginning July 1, 2027, licensed operators also owe annual supervision fees based on business volume and regulatory costs. The state assesses annual fees by August 1, and payment to the State Treasurer is due September 1. Out-of-state examinations or investigations also require payment of actual travel and reasonable living costs, or an approved daily allowance. Those expenses are due within 30 days after an itemized bill; the law does not set the fee amounts.

Kiosk fraud tracking also blocks some payments

Beginning July 1, 2027, operators must maintain written fraud controls and follow relevant federal Bank Secrecy Act requirements. They must use blockchain tracking software and show proof of its use when the state requests it. Operators must block payments to wallets tied to overseas exchanges that U.S. users cannot access. They must maintain a monitored communications line for government agencies handling user fraud reports. After a subpoena under the specified state law, operators must provide requested trace findings and help police analyze possible fraud.

Kiosk users face limits and cancellation holds

Beginning July 1, 2027, new users face a $2,000 daily limit; all users face $5,000 daily and $10,000 monthly limits. These limits count U.S. dollars or the equivalent value in virtual currency. Under the 14-day rule, users who transact on three or more days within 14 days leave new-user limits afterward. Operators must hold each new-user transaction for at least 48 hours before allowing completion. You can cancel during that hold and receive a full refund.

Kiosk users must share identity details

Beginning July 1, 2027, operators must verify your identity before accepting payment for each attempted kiosk transaction. They must collect a copy of government-issued identification, your name, birth date, phone number, address, and email. Transactions cannot proceed under anyone else's identity. These checks support fraud safeguards but require sharing personal information each time.

Kiosk licenses and bonds protect users

Virginia accepts license applications starting March 1, 2027, and issues licenses beginning July 1, 2027. Operators need a license before placing Virginia kiosks or offering transactions, whether or not they hold currency for users. Sworn applications must identify applicants and locations; approval requires financial responsibility and fitness, and denials must explain why. Operators must continuously maintain a state-approved corporate surety bond of $1,000–$25,000; harmed people can seek recovery up to its limit. Transactions without a required license are void, and operators cannot collect or keep related charges.

Kiosk operators report business and user data

Beginning July 1, 2027, operators must keep required records at licensed offices, separate from records for their other businesses. State requests require responses by the stated deadline, or within 30 days when none is stated. Sworn annual reports are due March 31; location reports are due 45 days after each quarter, including suspected-illicit-activity declines. Reports cover revenue, transactions, complaints, refunds, suspicious activity, compliance contacts, kiosk locations, and currency addresses; specified bankruptcy, regulatory, felony, and consumer-protection events require reports within 15 days describing expected business effects. Operators must supply requested user and transaction data; collected data stays confidential except for grouped releases or legally required disclosure, with an annual public analysis.

Sponsors & Cosponsors

Sponsor

  • Saddam Azlan Salim

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 251 • No: 13

Senate vote • 3/2/2026

House Amendments agreed to by Senate (40-Y 0-A 0-A)

Yes: 40 • No: 0

House vote • 2/26/2026

Passed House with amendments

Yes: 86 • No: 10

House vote • 2/23/2026

Reported from Communications, Technology and Innovation with amendment(s)

Yes: 19 • No: 3

Senate vote • 2/9/2026

Read third time and passed Senate

Yes: 40 • No: 0

Senate vote • 2/6/2026

Commerce and Labor Substitute agreed to

Yes: 0 • No: 0

Senate vote • 2/5/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/5/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote • 2/4/2026

Reported from Finance and Appropriations

Yes: 15 • No: 0

Senate vote • 1/26/2026

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

Yes: 11 • No: 0 • Other: 4

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0655)

    4/13/2026Governor
  2. Approved by Governor-Chapter 655 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (SB489)

    3/24/2026Senate
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  5. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026Senate
  6. Bill text as passed Senate and House (SB489ER)

    3/5/2026Senate
  7. Enrolled

    3/5/2026Senate
  8. Signed by President

    3/5/2026Senate
  9. Signed by Speaker

    3/5/2026House
  10. House Amendments agreed to by Senate (40-Y 0-A 0-A)

    3/2/2026Senate
  11. Passed House with amendments (86-Y 10-N 0-A)

    2/26/2026House
  12. Engrossed by House as amended

    2/26/2026House
  13. committee amendments agreed to

    2/26/2026House
  14. Read third time

    2/26/2026House
  15. Read second time

    2/25/2026House
  16. House committee offered

    2/23/2026House
  17. House committee offered

    2/23/2026House
  18. Reported from Communications, Technology and Innovation with amendment(s) (19-Y 3-N)

    2/23/2026House
  19. Referred to Committee on Communications, Technology and Innovation

    2/12/2026House
  20. Read first time

    2/12/2026House
  21. Placed on Calendar

    2/12/2026House
  22. Read third time and passed Senate (40-Y 0-N 0-A)

    2/9/2026Senate
  23. Commerce and Labor Substitute agreed to

    2/6/2026Senate
  24. Engrossed by Senate - committee substitute (Voice Vote)

    2/6/2026Senate
  25. Read second time

    2/6/2026Senate

Bill Text

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