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SB0249e -1- HCS CSSB 249(L&C)
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HOUSE CS FOR CS FOR SENATE BILL NO. 249(L&C)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY THE HOUSE LABOR AND COMMERCE COMMITTEE
Offered: 5/14/26
Referred: Rules
Sponsor(s): SENATORS TILTON, Cronk, Myers, Dunbar, Claman, Merrick, Bjorkman, Tobin, Kawasaki,
Giessel, Gray-Jackson, Rauscher, Kaufman, Stedman, Stevens
A BILL
FOR AN ACT ENTITLED
"An Act relating to virtual currency kiosks; relating to transactions involving virtual 1
currency; relating to unfair trade or deceptive acts or practices; and providing for an 2
effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 06.55 is amended by adding new sections to read: 5
Article 1A. Virtual Currency Kiosks. 6
Sec. 06.55.120. Virtual currency kiosk operator licensing and reporting. 7
(a) A virtual currency kiosk operator may not engage in a virtual currency kiosk 8
transaction or hold itself out as being able to engage in virtual currency kiosk 9
transactions with or on behalf of another person unless the virtual currency kiosk 10
operator holds a money transmission license. 11
(b) A virtual currency kiosk operator may not locate a virtual currency kiosk 12
in the state unless the virtual currency kiosk operator registers with and obtains the 13
prior approval of the department. 14
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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 3
currency 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 19
report 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 26
virtual currency kiosk operator conducted through virtual currency kiosks in the state; 27
(4) the total number of refunds requested by users, including the 28
number of requests granted and the number denied by the virtual currency kiosk 29
operator; 30
(5) the total dollar amount of refunds the virtual currency kiosk 31
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operator provided to users; 1
(6) contact details for the virtual currency kiosk operator's compliance 2
officer; 3
(7) the total number of virtual currency kiosk locations; and 4
(8) the total number and dollar amount of suspicious transaction 5
reports the virtual currency kiosk operator was required to file under 31 U.S.C. 5311 - 6
5336. 7
(c) Upon request, a virtual currency kiosk operator shall make available to the 8
department information on any transaction processed by the virtual currency kiosk or 9
any user of the virtual currency kiosk, including information related to transactions 10
that were attempted but denied. 11
(d) Data collected by the department under this section is confidential and is 12
not a public record for purposes of AS 40.25.110 - 40.25.140 but may be released in 13
composite form. The department shall prepare and make available to the public an 14
annual report summarizing the data reported to the department under this section. 15
Sec. 06.55.130. Disclosures. (a) A virtual currency kiosk operator shall 16
disclose in a clear, conspicuous, and easily readable manner in the chosen language of 17
the user all relevant terms and conditions generally associated with the products, 18
services, and activities of the virtual currency kiosk operator and virtual currency, 19
including transaction charges collected and exchange rates used by the virtual 20
currency kiosk operator. 21
(b) When a user engages with a virtual currency kiosk, the virtual currency 22
kiosk operator shall obtain acknowledgment of receipt of all disclosures required 23
under this section. 24
(c) The disclosures required under this section must address the following: 25
(1) a warning, written prominently and in bold type stating 26
WARNING: this technology can be used to defraud you. If 27
someone asked you to deposit money in this machine or is on the 28
telephone with you and claims to be a friend or family member, 29
government agent, computer software representative, bill collector, law 30
enforcement officer, or anyone you do not know personally 31
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IMMEDIATELY STOP THIS TRANSACTION and contact your local 1
law enforcement and the kiosk operator. This may be a scam. NEVER 2
SEND MONEY to someone you don't know; 3
(2) a warning of the material risks associated with virtual currency, 4
including a warning that virtual currency is not issued or backed by the United States 5
government; is not legal tender in the United States; is not subject to protections by the 6
Federal Deposit Insurance Corporation, National Credit Union Administration, or 7
Securities Investor Protection Corporation; and that its value relative to the United 8
States dollar may fluctuate significantly; 9
(3) the name, address, and telephone number of the owner of the kiosk 10
and the days, time, and means by which a user can contact the owner for assistance; 11
(4) the address and telephone number of the Alaska state troopers, 12
local law enforcement, and the department, along with a message that a user may 13
report fraud to any of those entities, shall be displayed on or at the location of a virtual 14
currency kiosk or on the first screen of a kiosk; and 15
(5) other disclosures that the department requires by regulation. 16
(d) The disclosures required under this section do not affect the obligation of a 17
virtual currency kiosk operator to issue a refund under AS 06.55.160 to a user who is a 18
victim of fraud. 19
(e) After the completion of each transaction, the virtual currency kiosk 20
operator shall provide users with paper and electronic receipts. In addition to the 21
information required under AS 06.55.830, the receipt must include the following 22
information: 23
(1) the virtual currency kiosk operator's name and toll-free customer 24
service telephone number; 25
(2) relevant contact information to report fraud to the Alaska state 26
troopers, local law enforcement, and the department; 27
(3) the type, value, date, and time of the transaction; 28
(4) each applicable virtual currency address and transaction hash, if 29
applicable; 30
(5) all charges incurred in the transaction; 31
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(6) the exchange rate used between the virtual currency and United 1
States dollar; 2
(7) a statement of the virtual currency kiosk operator's refund policy; 3
(8) any additional information the department requires by regulation. 4
Sec. 06.55.135. Fraud and anti-money laundering policy. A virtual currency 5
kiosk operator shall take reasonable steps to detect and prevent fraud and money 6
laundering, including establishing and maintaining a written anti-fraud policy and 7
abiding by 31 U.S.C. 5311 - 5336 (Bank Secrecy Act). The anti-fraud and money 8
laundering policy must, at a minimum, 9
(1) identify and assess fraud-related and money laundering-related risk 10
areas; 11
(2) establish procedures and controls to protect against identified risks 12
of fraud and money laundering; 13
(3) allocate responsibility for monitoring risks of fraud and money 14
laundering; and 15
(4) require periodic evaluation and revision of the anti-fraud and 16
money laundering procedures, controls, and monitoring mechanisms. 17
Sec. 06.55.140. Blockchain analytics. A virtual currency kiosk operator shall 18
use blockchain analytics and tracing software to assist in the prevention of sending 19
virtual currency to a virtual currency wallet known or likely to be affiliated with 20
fraudulent activity at the time of a transaction and to detect transaction patterns 21
indicative of fraud or other illicit activities. Virtual currency kiosk operators shall 22
block transactions to virtual currency wallets associated with overseas exchanges that 23
are inaccessible to users in the United States. A virtual currency kiosk operator shall 24
make available to the department, upon request, evidence of their current use of 25
blockchain analytics. 26
Sec. 06.55.145. Posted warnings. A virtual currency kiosk operator shall post 27
a conspicuous written warning in plain view of the virtual currency kiosk providing 28
notice to users that criminals may direct victims of fraud or scams to send money by 29
way of virtual currency kiosks. This warning must include the virtual currency kiosk 30
operator's toll-free customer service telephone number. 31
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Sec. 06.55.150. User identification. (a) A virtual currency kiosk operator or 1
their authorized delegate shall verify the identity of a user before accepting payment 2
from the user for a virtual currency transaction. A virtual currency kiosk operator or 3
their authorized delegate shall obtain a copy of a government-issued identification 4
card that identifies the user and shall collect additional user information, including the 5
user's name, date of birth, telephone number, address, and electronic mail address, 6
before accepting a payment from the user at a virtual currency kiosk. 7
(b) A virtual currency kiosk operator may not allow a user to engage in a 8
transaction at a virtual currency kiosk under any name, account, or identity other than 9
the user's own true name and identity. 10
(c) A virtual currency kiosk operator is strictly liable for a violation of this 11
section. 12
Sec. 06.55.155. Training. On an annual basis, a virtual currency kiosk 13
operator shall provide the store or location where the kiosk is located with staff 14
training materials approved by the department. The training materials must outline 15
how criminals may exploit virtual currency kiosks in illicit activity, including red flag 16
indicators that a virtual currency kiosk user may be the victim of fraud or scams as 17
well as signs of financial abuse and exploitation. The virtual currency kiosk operator 18
may not prohibit or prevent staff at the location of the virtual currency kiosk from 19
educating virtual currency kiosk users on fraud and scams. 20
Sec. 06.55.160. Refunds. For cases related to fraud, a virtual currency kiosk 21
operator shall issue a refund to a user in the full amount of all transactions paid by the 22
user at the time of the transaction, including transaction charges, regardless of any 23
acknowledgment the user may have made before finalizing the transactions. This 24
refund must be paid in the originating currency. A user is entitled to a full refund if the 25
user 26
(1) engaged in a transaction involving the virtual currency kiosk that 27
was affected by fraud; 28
(2) informed the virtual currency kiosk operator of the fraudulent 29
nature of the transaction or transactions at issue within 90 days after the last 30
transaction or within 90 days after the user became aware of the fraud, whichever is 31
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later; and 1
(3) within 120 days after contacting the virtual currency kiosk 2
operator, submitted to the virtual currency kiosk operator a police report, report by the 3
department, or a sworn statement detailing the fraudulent nature of the transaction. 4
Sec. 06.55.165. Communication. For all communication between the virtual 5
currency kiosk operator and the user, the virtual currency kiosk operator shall provide 6
written notices in both English and Spanish and communicate with the user in their 7
preferred language through staff, oral interpretation services, or auxiliary aids and 8
services. 9
Sec. 06.55.170. Transaction limit. (a) A virtual currency kiosk operator may 10
not accept transactions totaling more than $1,000, or the equivalent in virtual currency, 11
from a user in one calendar day. 12
(b) A virtual currency kiosk operator may not accept transactions totaling 13
more than $10,000, or the equivalent in virtual currency, from a user in a 30-day 14
period. 15
(c) The limits in this section apply to all products offered by a virtual currency 16
kiosk operator. The use of alternative products, including online purchasing or over-17
the-counter platforms, may not be employed to circumvent or exceed the limits in this 18
section. 19
Sec. 06.55.172. Transaction fees. A virtual currency kiosk operator may not 20
collect fees from a user for a transaction that total more than 10 percent of the 21
transaction value in United States dollars or the equivalent in virtual currency. 22
Sec. 06.55.175. Customer service. A virtual currency kiosk operator shall 23
provide live customer service during operating hours, including the hours between 24
8:00 a.m. and 10:00 p.m. Alaska time. A customer service toll-free number must be 25
displayed on the virtual currency kiosk or the virtual currency kiosk screen. 26
Sec. 06.55.180. Law enforcement access to investigative information. A 27
virtual currency kiosk operator shall provide a dedicated communications line for 28
government agencies to contact the virtual currency kiosk operator. The dedicated line 29
must be an electronic mail address or telephone number based in the United States. A 30
law enforcement agency or a regulatory agency, including the department, may use the 31
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dedicated line to communicate with the virtual currency kiosk operator in the event of 1
a fraud report from a user. The dedicated line must be regularly monitored. Upon 2
request from a law enforcement agency or regulatory agency, a virtual currency kiosk 3
operator must provide the agency with trace findings and grant the agency assistance 4
with blockchain analytics to assist in an investigative matter related to potential fraud. 5
Sec. 06.55.185. Penalties. (a) A virtual currency kiosk operator that violates 6
AS 06.55.120 - 06.55.195 commits an unfair trade or deceptive act or practice in 7
violation of AS 45.50.471. 8
(b) A virtual currency kiosk operator operating in this state without a money 9
transmission license or that otherwise violates AS 06.55.120 - 06.55.195 is subject to 10
administrative action, including civil penalties, that may, notwithstanding 11
AS 06.55.605, include the seizure of any virtual currency kiosk and the forfeiture of 12
all fees received from customers in the state during the period of unlicensed activity or 13
noncompliance. 14
Sec. 06.55.190. Municipal regulations. Nothing in AS 06.55.120 - 06.55.195 15
may be interpreted to preempt or nullify a municipal ordinance that provides greater 16
protections, requirements, or restrictions if the municipal ordinance does not directly 17
conflict with AS 06.55.120 - 06.55.195. 18
Sec. 06.55.195. Definitions. In AS 06.55.120 - 06.55.195, 19
(1) "blockchain analytics" means the analysis of data from blockchains 20
or public distributed ledgers, including associated transaction information; 21
(2) "blockchain analytics and tracing software" includes a software 22
service that uses blockchain analytics to provide risk-specific information and tracing 23
of virtual currency wallet addresses; 24
(3) "charges" include 25
(A) fees or expenses paid by a user; and 26
(B) the difference between the market price of the virtual 27
currency and the price of the virtual currency charged to the user; 28
(4) "user" means a person that initiates, authorizes, or completes a 29
transaction involving virtual currency through a virtual currency kiosk for the purpose 30
of purchasing, selling, transferring, or otherwise exchanging virtual currency; 31
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(5) "virtual currency address" means an alphanumeric identifier 1
associated with a virtual currency wallet that identifies the location to which a virtual 2
currency transaction can be sent; 3
(6) "virtual currency kiosk" means an electronic terminal that enables 4
the virtual currency kiosk operator to facilitate a virtual currency exchange by 5
connecting directly with another person that exchanges virtual currency, drawing upon 6
virtual currency in the possession of the electronic terminal's operator, or by another 7
method; 8
(7) "virtual currency kiosk operator" means a person that engages in 9
virtual currency business activity by way of a virtual currency kiosk located in the 10
state or a person that owns, operates, manages, or provides custodial or noncustodial 11
services for a virtual currency kiosk located in the state through which virtual currency 12
business activity is offered; 13
(8) "virtual currency kiosk transaction" means a transaction conducted 14
or performed, in whole or in part, through a virtual currency kiosk or a transaction 15
made at a virtual currency kiosk to purchase virtual currency with United States 16
dollars or to sell virtual currency for United States dollars; 17
(9) "virtual currency wallet" means a software application or other 18
mechanism providing a means to hold the keys necessary to access and transfer virtual 19
currency. 20
* Sec. 2. AS 06.55.840 is amended by adding a new subsection to read: 21
(b) This section does not apply to a refund requested for a virtual currency 22
kiosk transaction under AS 06.55.120 - 06.55.195. 23
* Sec. 3. AS 06.55.990(15) is amended to read: 24
(15) "money transmission" 25
(A) means 26
(i) selling or issuing payment instruments or stored 27
value to a person located in this state; 28
(ii) [, OR] receiving money or monetary value for 29
transmission to the state, from the state, or within the state; or 30
(iii) operating a virtual currency kiosk; 31
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(B) [, BUT] does not mean [INCLUDE] the provision solely of 1
[DELIVERY,] online services, telecommunications services, or network 2
access; 3
* Sec. 4. AS 06.55.990 is amended by adding new paragraphs to read: 4
(25) "control of virtual currency," when used in reference to a 5
transaction or relationship involving virtual currency, means the power to execute 6
unilaterally or prevent indefinitely a virtual currency transaction; 7
(26) "in this state" means at a physical location within this state for a 8
transaction requested in person; 9
(27) "virtual currency" 10
(A) means a digital representation of value that 11
(i) is used as a medium of exchange, unit of account, or 12
store of value; and 13
(ii) is not money, whether or not denominated in 14
money; 15
(B) does not mean 16
(i) a transaction in which a merchant grants, as part of 17
an affinity or rewards program, value that cannot be taken from or 18
exchanged with the merchant for money, bank credit, or virtual 19
currency; or 20
(ii) a digital representation of value issued by or on 21
behalf of a publisher and used solely within an online game, game 22
platform, or family of games sold by the same publisher or offered on 23
the same game platform; 24
(28) "virtual currency administration" means issuing virtual currency 25
with the authority to redeem the currency for money, bank credit, or other virtual 26
currency; 27
(29) "virtual currency business activity" means 28
(A) exchanging, transferring, or storing virtual currency or 29
engaging in virtual currency administration, whether directly or through an 30
agreement with a virtual currency control services vendor; 31
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(B) holding electronic precious metals or electronic certificates 1
representing interests in precious metals on behalf of another person or issuing 2
shares or electronic certificates representing interests in precious metals; or 3
(C) exchanging one or more digital representations of value 4
used within one or more online games, game platforms, or family of games for 5
(i) virtual currency offered by or on behalf of the same 6
publisher from which the original digital representation of value was 7
received; or 8
(ii) money or bank credit outside the online game, game 9
platform, or family of games offered by or on behalf of the same 10
publisher from which the original digital representation of value was 11
received; 12
(30) "virtual currency control services vendor" means a person that has 13
control of virtual currency solely under an agreement with a person that, on behalf of 14
another person, assumes control of virtual currency; 15
(31) "virtual currency exchange" means to 16
(A) assume control of virtual currency from or on behalf of a 17
person, at least momentarily; 18
(B) sell, trade, or convert 19
(i) virtual currency for money, bank credit, or one or 20
more forms of virtual currency or money; or 21
(ii) bank credit for one or more forms of virtual 22
currency; 23
(32) "virtual currency transfer" means to assume control of virtual 24
currency from or on behalf of a person and to 25
(A) credit the virtual currency to the account of another person; 26
(B) move the virtual currency from one account of a person to 27
another account of the same person; or 28
(C) relinquish control of virtual currency to another person. 29
* Sec. 5. AS 45.50.471(b) is amended by adding a new paragraph to read: 30
(58) violating AS 06.55.120 - 06.55.195 (virtual currency kiosks). 31
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* Sec. 6. This Act takes effect October 1, 2026. 1