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Enrolled SB 249
LAWS OF ALASKA
2026
Source Chapter No.
HCS CSSB 249(L&C) _______
AN ACT
Relating to virtual currency kiosks; relating to transactions involving virtual currency; relating
to unfair trade or deceptive acts or practices; and providing for an effective date.
_______________
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
THE ACT FOLLOWS ON PAGE 1
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AN ACT
Relating to virtual currency kiosks; relating to transactions involving virtual currency; relating 1
to unfair trade or deceptive acts or practices; and providing for an effective date. 2
_______________ 3
* Section 1. AS 06.55 is amended by adding new sections to read: 4
Article 1A. Virtual Currency Kiosks. 5
Sec. 06.55.120. Virtual currency kiosk operator licensing and reporting. (a) 6
A virtual currency kiosk operator may not engage in a virtual currency kiosk transaction 7
or hold itself out as being able to engage in virtual currency kiosk transactions with or 8
on behalf of another person unless the virtual currency kiosk operator holds a money 9
transmission license. 10
(b) A virtual currency kiosk operator may not locate a virtual currency kiosk in 11
the state unless the virtual currency kiosk operator registers with and obtains the prior 12
approval of the department. 13
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Sec. 06.55.125. Reporting. (a) Within 45 days after the end of each calendar 1
quarter, a virtual currency kiosk operator shall submit a quarterly report to the 2
department for each location in the state at which the person operates a virtual currency 3
kiosk. The report must include the following: 4
(1) the legal name of the virtual currency kiosk operator; 5
(2) any fictitious or trade name used by the virtual currency kiosk 6
operator; 7
(3) the virtual currency kiosk operator's physical address; 8
(4) the date that operation of a virtual currency kiosk began at the 9
location; 10
(5) if applicable, the date the virtual currency kiosk operator ceased 11
operating a virtual currency kiosk at the location; 12
(6) virtual currency addresses used by the virtual currency kiosk 13
operator to service users at every location in the state; and 14
(7) the number of transactions declined because of suspicion of illicit 15
activity. 16
(b) On or before March 31 of each year, a virtual currency kiosk operator shall 17
submit an annual report to the department relating to the virtual currency kiosk 18
operator's business conducted in the state during the previous calendar year. The report 19
shall be on a form prescribed by the department and must include 20
(1) the gross revenue attributable to virtual currency transactions 21
conducted through virtual currency kiosks in the state; 22
(2) copies of each complaint filed by a user against the virtual currency 23
kiosk operator with the Better Business Bureau or a state or federal agency other than 24
the department and a description of the resolution, if any, of each complaint; 25
(3) the total number and value of virtual currency transactions the virtual 26
currency kiosk operator conducted through virtual currency kiosks in the state; 27
(4) the total number of refunds requested by users, including the number 28
of requests granted and the number denied by the virtual currency kiosk operator; 29
(5) the total dollar amount of refunds the virtual currency kiosk operator 30
provided to users; 31
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(6) contact details for the virtual currency kiosk operator's compliance 1
officer; 2
(7) the total number of virtual currency kiosk locations; and 3
(8) the total number and dollar amount of suspicious transaction reports 4
the virtual currency kiosk operator was required to file under 31 U.S.C. 5311 - 5336. 5
(c) Upon request, a virtual currency kiosk operator shall make available to the 6
department information on any transaction processed by the virtual currency kiosk or 7
any user of the virtual currency kiosk, including information related to transactions that 8
were attempted but denied. 9
(d) Data collected by the department under this section is confidential and is not 10
a public record for purposes of AS 40.25.110 - 40.25.140 but may be released in 11
composite form. The department shall prepare and make available to the public an 12
annual report summarizing the data reported to the department under this section. 13
Sec. 06.55.130. Disclosures. (a) A virtual currency kiosk operator shall disclose 14
in a clear, conspicuous, and easily readable manner in the chosen language of the user 15
all relevant terms and conditions generally associated with the products, services, and 16
activities of the virtual currency kiosk operator and virtual currency, including 17
transaction charges collected and exchange rates used by the virtual currency kiosk 18
operator. 19
(b) When a user engages with a virtual currency kiosk, the virtual currency kiosk 20
operator shall obtain acknowledgment of receipt of all disclosures required under this 21
section. 22
(c) The disclosures required under this section must address the following: 23
(1) a warning, written prominently and in bold type stating 24
WARNING: this technology can be used to defraud you. If 25
someone asked you to deposit money in this machine or is on the 26
telephone with you and claims to be a friend or family member, 27
government agent, computer software representative, bill collector, law 28
enforcement officer, or anyone you do not know personally 29
IMMEDIATELY STOP THIS TRANSACTION and contact your local 30
law enforcement and the kiosk operator. This may be a scam. NEVER 31
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SEND MONEY to someone you don't know; 1
(2) a warning of the material risks associated with virtual currency, 2
including a warning that virtual currency is not issued or backed by the United States 3
government; is not legal tender in the United States; is not subject to protections by the 4
Federal Deposit Insurance Corporation, National Credit Union Administration, or 5
Securities Investor Protection Corporation; and that its value relative to the United 6
States dollar may fluctuate significantly; 7
(3) the name, address, and telephone number of the owner of the kiosk 8
and the days, time, and means by which a user can contact the owner for assistance; 9
(4) the address and telephone number of the Alaska state troopers, local 10
law enforcement, and the department, along with a message that a user may report fraud 11
to any of those entities, shall be displayed on or at the location of a virtual currency 12
kiosk or on the first screen of a kiosk; and 13
(5) other disclosures that the department requires by regulation. 14
(d) The disclosures required under this section do not affect the obligation of a 15
virtual currency kiosk operator to issue a refund under AS 06.55.160 to a user who is a 16
victim of fraud. 17
(e) After the completion of each transaction, the virtual currency kiosk operator 18
shall provide users with paper and electronic receipts. In addition to the information 19
required under AS 06.55.830, the receipt must include the following information: 20
(1) the virtual currency kiosk operator's name and toll-free customer 21
service telephone number; 22
(2) relevant contact information to report fraud to the Alaska state 23
troopers, local law enforcement, and the department; 24
(3) the type, value, date, and time of the transaction; 25
(4) each applicable virtual currency address and transaction hash, if 26
applicable; 27
(5) all charges incurred in the transaction; 28
(6) the exchange rate used between the virtual currency and United 29
States dollar; 30
(7) a statement of the virtual currency kiosk operator's refund policy; 31
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(8) any additional information the department requires by regulation. 1
Sec. 06.55.135. Fraud and anti-money laundering policy. A virtual currency 2
kiosk operator shall take reasonable steps to detect and prevent fraud and money 3
laundering, including establishing and maintaining a written anti-fraud policy and 4
abiding by 31 U.S.C. 5311 - 5336 (Bank Secrecy Act). The anti-fraud and money 5
laundering policy must, at a minimum, 6
(1) identify and assess fraud-related and money laundering-related risk 7
areas; 8
(2) establish procedures and controls to protect against identified risks 9
of fraud and money laundering; 10
(3) allocate responsibility for monitoring risks of fraud and money 11
laundering; and 12
(4) require periodic evaluation and revision of the anti-fraud and money 13
laundering procedures, controls, and monitoring mechanisms. 14
Sec. 06.55.140. Blockchain analytics. A virtual currency kiosk operator shall 15
use blockchain analytics and tracing software to assist in the prevention of sending 16
virtual currency to a virtual currency wallet known or likely to be affiliated with 17
fraudulent activity at the time of a transaction and to detect transaction patterns 18
indicative of fraud or other illicit activities. Virtual currency kiosk operators shall block 19
transactions to virtual currency wallets associated with overseas exchanges that are 20
inaccessible to users in the United States. A virtual currency kiosk operator shall make 21
available to the department, upon request, evidence of their current use of blockchain 22
analytics. 23
Sec. 06.55.145. Posted warnings. A virtual currency kiosk operator shall post 24
a conspicuous written warning in plain view of the virtual currency kiosk providing 25
notice to users that criminals may direct victims of fraud or scams to send money by 26
way of virtual currency kiosks. This warning must include the virtual currency kiosk 27
operator's toll-free customer service telephone number. 28
Sec. 06.55.150. User identification. (a) A virtual currency kiosk operator or 29
their authorized delegate shall verify the identity of a user before accepting payment 30
from the user for a virtual currency transaction. A virtual currency kiosk operator or 31
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their authorized delegate shall obtain a copy of a government-issued identification card 1
that identifies the user and shall collect additional user information, including the user's 2
name, date of birth, telephone number, address, and electronic mail address, before 3
accepting a payment from the user at a virtual currency kiosk. 4
(b) A virtual currency kiosk operator may not allow a user to engage in a 5
transaction at a virtual currency kiosk under any name, account, or identity other than 6
the user's own true name and identity. 7
(c) A virtual currency kiosk operator is strictly liable for a violation of this 8
section. 9
Sec. 06.55.155. Training. On an annual basis, a virtual currency kiosk operator 10
shall provide the store or location where the kiosk is located with staff training materials 11
approved by the department. The training materials must outline how criminals may 12
exploit virtual currency kiosks in illicit activity, including red flag indicators that a 13
virtual currency kiosk user may be the victim of fraud or scams as well as signs of 14
financial abuse and exploitation. The virtual currency kiosk operator may not prohibit 15
or prevent staff at the location of the virtual currency kiosk from educating virtual 16
currency kiosk users on fraud and scams. 17
Sec. 06.55.160. Refunds. For cases related to fraud, a virtual currency kiosk 18
operator shall issue a refund to a user in the full amount of all transactions paid by the 19
user at the time of the transaction, including transaction charges, regardless of any 20
acknowledgment the user may have made before finalizing the transactions. This refund 21
must be paid in the originating currency. A user is entitled to a full refund if the user 22
(1) engaged in a transaction involving the virtual currency kiosk that 23
was affected by fraud; 24
(2) informed the virtual currency kiosk operator of the fraudulent nature 25
of the transaction or transactions at issue within 90 days after the last transaction or 26
within 90 days after the user became aware of the fraud, whichever is later; and 27
(3) within 120 days after contacting the virtual currency kiosk operator, 28
submitted to the virtual currency kiosk operator a police report, report by the 29
department, or a sworn statement detailing the fraudulent nature of the transaction. 30
Sec. 06.55.165. Communication. For all communication between the virtual 31
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currency kiosk operator and the user, the virtual currency kiosk operator shall provide 1
written notices in both English and Spanish and communicate with the user in their 2
preferred language through staff, oral interpretation services, or auxiliary aids and 3
services. 4
Sec. 06.55.170. Transaction limit. (a) A virtual currency kiosk operator may 5
not accept transactions totaling more than $1,000, or the equivalent in virtual currency, 6
from a user in one calendar day. 7
(b) A virtual currency kiosk operator may not accept transactions totaling more 8
than $10,000, or the equivalent in virtual currency, from a user in a 30-day period. 9
(c) The limits in this section apply to all products offered by a virtual currency 10
kiosk operator. The use of alternative products, including online purchasing or over-the-11
counter platforms, may not be employed to circumvent or exceed the limits in this 12
section. 13
Sec. 06.55.172. Transaction fees. A virtual currency kiosk operator may not 14
collect fees from a user for a transaction that total more than 10 percent of the transaction 15
value in United States dollars or the equivalent in virtual currency. 16
Sec. 06.55.175. Customer service. A virtual currency kiosk operator shall 17
provide live customer service during operating hours, including the hours between 8:00 18
a.m. and 10:00 p.m. Alaska time. A customer service toll-free number must be displayed 19
on the virtual currency kiosk or the virtual currency kiosk screen. 20
Sec. 06.55.180. Law enforcement access to investigative information. A 21
virtual currency kiosk operator shall provide a dedicated communications line for 22
government agencies to contact the virtual currency kiosk operator. The dedicated line 23
must be an electronic mail address or telephone number based in the United States. A 24
law enforcement agency or a regulatory agency, including the department, may use the 25
dedicated line to communicate with the virtual currency kiosk operator in the event of a 26
fraud report from a user. The dedicated line must be regularly monitored. Upon request 27
from a law enforcement agency or regulatory agency, a virtual currency kiosk operator 28
must provide the agency with trace findings and grant the agency assistance with 29
blockchain analytics to assist in an investigative matter related to potential fraud. 30
Sec. 06.55.185. Penalties. (a) A virtual currency kiosk operator that violates 31
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AS 06.55.120 - 06.55.195 commits an unfair trade or deceptive act or practice in 1
violation of AS 45.50.471. 2
(b) A virtual currency kiosk operator operating in this state without a money 3
transmission license or that otherwise violates AS 06.55.120 - 06.55.195 is subject to 4
administrative action, including civil penalties, that may, notwithstanding 5
AS 06.55.605, include the seizure of any virtual currency kiosk and the forfeiture of all 6
fees received from customers in the state during the period of unlicensed activity or 7
noncompliance. 8
Sec. 06.55.190. Municipal regulations. Nothing in AS 06.55.120 - 06.55.195 9
may be interpreted to preempt or nullify a municipal ordinance that provides greater 10
protections, requirements, or restrictions if the municipal ordinance does not directly 11
conflict with AS 06.55.120 - 06.55.195. 12
Sec. 06.55.195. Definitions. In AS 06.55.120 - 06.55.195, 13
(1) "blockchain analytics" means the analysis of data from blockchains 14
or public distributed ledgers, including associated transaction information; 15
(2) "blockchain analytics and tracing software" includes a software 16
service that uses blockchain analytics to provide risk-specific information and tracing 17
of virtual currency wallet addresses; 18
(3) "charges" include 19
(A) fees or expenses paid by a user; and 20
(B) the difference between the market price of the virtual 21
currency and the price of the virtual currency charged to the user; 22
(4) "user" means a person that initiates, authorizes, or completes a 23
transaction involving virtual currency through a virtual currency kiosk for the purpose 24
of purchasing, selling, transferring, or otherwise exchanging virtual currency; 25
(5) "virtual currency address" means an alphanumeric identifier 26
associated with a virtual currency wallet that identifies the location to which a virtual 27
currency transaction can be sent; 28
(6) "virtual currency kiosk" means an electronic terminal that enables 29
the virtual currency kiosk operator to facilitate a virtual currency exchange by 30
connecting directly with another person that exchanges virtual currency, drawing upon 31
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virtual currency in the possession of the electronic terminal's operator, or by another 1
method; 2
(7) "virtual currency kiosk operator" means a person that engages in 3
virtual currency business activity by way of a virtual currency kiosk located in the state 4
or a person that owns, operates, manages, or provides custodial or noncustodial services 5
for a virtual currency kiosk located in the state through which virtual currency business 6
activity is offered; 7
(8) "virtual currency kiosk transaction" means a transaction conducted 8
or performed, in whole or in part, through a virtual currency kiosk or a transaction made 9
at a virtual currency kiosk to purchase virtual currency with United States dollars or to 10
sell virtual currency for United States dollars; 11
(9) "virtual currency wallet" means a software application or other 12
mechanism providing a means to hold the keys necessary to access and transfer virtual 13
currency. 14
* Sec. 2. AS 06.55.840 is amended by adding a new subsection to read: 15
(b) This section does not apply to a refund requested for a virtual currency kiosk 16
transaction under AS 06.55.120 - 06.55.195. 17
* Sec. 3. AS 06.55.990(15) is amended to read: 18
(15) "money transmission" 19
(A) means 20
(i) selling or issuing payment instruments or stored value 21
to a person located in this state; 22
(ii) [, OR] receiving money or monetary value for 23
transmission to the state, from the state, or within the state; or 24
(iii) operating a virtual currency kiosk; 25
(B) [, BUT] does not mean [INCLUDE] the provision solely of 26
[DELIVERY,] online services, telecommunications services, or network access; 27
* Sec. 4. AS 06.55.990 is amended by adding new paragraphs to read: 28
(25) "control of virtual currency," when used in reference to a 29
transaction or relationship involving virtual currency, means the power to execute 30
unilaterally or prevent indefinitely a virtual currency transaction; 31
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(26) "in this state" means at a physical location within this state for a 1
transaction requested in person; 2
(27) "virtual currency" 3
(A) means a digital representation of value that 4
(i) is used as a medium of exchange, unit of account, or 5
store of value; and 6
(ii) is not money, whether or not denominated in money; 7
(B) does not mean 8
(i) a transaction in which a merchant grants, as part of an 9
affinity or rewards program, value that cannot be taken from or 10
exchanged with the merchant for money, bank credit, or virtual currency; 11
or 12
(ii) a digital representation of value issued by or on behalf 13
of a publisher and used solely within an online game, game platform, or 14
family of games sold by the same publisher or offered on the same game 15
platform; 16
(28) "virtual currency administration" means issuing virtual currency 17
with the authority to redeem the currency for money, bank credit, or other virtual 18
currency; 19
(29) "virtual currency business activity" means 20
(A) exchanging, transferring, or storing virtual currency or 21
engaging in virtual currency administration, whether directly or through an 22
agreement with a virtual currency control services vendor; 23
(B) holding electronic precious metals or electronic certificates 24
representing interests in precious metals on behalf of another person or issuing 25
shares or electronic certificates representing interests in precious metals; or 26
(C) exchanging one or more digital representations of value used 27
within one or more online games, game platforms, or family of games for 28
(i) virtual currency offered by or on behalf of the same 29
publisher from which the original digital representation of value was 30
received; or 31
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(ii) money or bank credit outside the online game, game 1
platform, or family of games offered by or on behalf of the same 2
publisher from which the original digital representation of value was 3
received; 4
(30) "virtual currency control services vendor" means a person that has 5
control of virtual currency solely under an agreement with a person that, on behalf of 6
another person, assumes control of virtual currency; 7
(31) "virtual currency exchange" means to 8
(A) assume control of virtual currency from or on behalf of a 9
person, at least momentarily; 10
(B) sell, trade, or convert 11
(i) virtual currency for money, bank credit, or one or 12
more forms of virtual currency or money; or 13
(ii) bank credit for one or more forms of virtual currency; 14
(32) "virtual currency transfer" means to assume control of virtual 15
currency from or on behalf of a person and to 16
(A) credit the virtual currency to the account of another person; 17
(B) move the virtual currency from one account of a person to 18
another account of the same person; or 19
(C) relinquish control of virtual currency to another person. 20
* Sec. 5. AS 45.50.471(b) is amended by adding a new paragraph to read: 21
(58) violating AS 06.55.120 - 06.55.195 (virtual currency kiosks). 22
* Sec. 6. This Act takes effect October 1, 2026. 23