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Florida Senate
-
2026
CS for CS for SB 198
By
the Committees on Rules; and Banking and Insurance; and
Senators Rouson and Arrington
595-02678-26 2026198c2
1 A bill to be entitled
2 An act relating to virtual currency kiosks; amending
3 s. 560.103, F.S.; revising the definition of the term
4 “money services business”; defining terms; amending s.
5 560.105, F.S.; revising the requirements for certain
6 rules adopted by the Financial Services Commission;
7 amending s. 560.114, F.S.; revising the actions by
8 money services businesses, authorized vendors, or
9 affiliated parties which constitute grounds for
10 disciplinary action; amending s. 560.125, F.S.;
11 prohibiting persons from engaging in certain business
12 unless they are registered or exempt from
13 registration; creating part V of ch. 560, F.S.,
14 entitled “Virtual Currency Kiosk Businesses”; creating
15 s. 560.501, F.S.; defining terms; creating s. 560.502,
16 F.S.; prohibiting a virtual currency kiosk business
17 from operating in this state without registering or
18 renewing its registration; requiring the Office of
19 Financial Regulation to give a specified notice to
20 applicants; specifying that certain money transmitters
21 are exempt from registration as a virtual currency
22 kiosk business but are subject to certain provisions;
23 prohibiting certain entities from performing certain
24 actions without being licensed as a money services
25 business; specifying that virtual currency kiosk
26 business registrations are not transferable or
27 assignable; creating s. 560.503, F.S.; requiring
28 applicants to submit certain information to the office
29 to be registered as a virtual currency kiosk business;
30 requiring certain virtual currency kiosk businesses to
31 submit a registration application to the office by a
32 specified date; requiring registrants to report a
33 change in the information within a specified
34 timeframe; requiring registrants to renew their
35 registration annually; specifying requirements for a
36 renewal application; requiring registrants to be made
37 inactive for a specified timeframe under certain
38 circumstances; prohibiting registrants from conducting
39 business while registration is inactive; specifying
40 requirements for registrants to renew an inactive
41 registration; providing that a renewal registration
42 becomes effective on a specified date; requiring the
43 office to approve applications for renewal
44 registration within a specified timeframe; providing
45 that a registration expires under certain
46 circumstances; providing requirements if a
47 registration expires; authorizing the office to deny
48 certain applications under certain circumstances;
49 providing that certain false statements made by a
50 virtual currency kiosk business render its
51 registration void; providing construction; creating s.
52 560.504, F.S.; requiring a virtual currency kiosk
53 business to ensure that its virtual currency kiosk
54 requires certain attestations from the customer and
55 displays a certain disclosure; creating s. 560.505,
56 F.S.; prohibiting a virtual currency kiosk business
57 from permitting new or existing customers from
58 transacting more than specified dollar amounts per
59 calendar day; creating s. 560.506, F.S.; requiring a
60 virtual currency kiosk business to provide a customer
61 with a specified physical or electronic receipt upon
62 completion of a virtual currency transaction; creating
63 s. 560.507, F.S.; requiring a virtual currency kiosk
64 business to issue a full refund under certain
65 circumstances; providing effective dates.
66
67 Be It Enacted by the Legislature of the State of Florida:
68
69 Section 1. Subsection (23) of section 560.103, Florida
70 Statutes, is amended, and subsections (37), (38), and (39) are
71 added to that section, to read:
72 560.103 Definitions.—As used in this chapter, the term:
73 (23) “Money services business” means any person located in
74 or doing business in this state, from this state, or into this
75 state from locations outside this state or country who acts as a
76 payment instrument seller, foreign currency exchanger, check
77 casher,
or
money transmitter
, or virtual currency kiosk
78
business
.
79
(37)
“Virtual currency kiosk” means an electronic terminal
80
that acts as a mechanical agent of the kiosk business, enabling
81
the kiosk business to facilitate the exchange of virtual
82
currency for fiat currency or other virtual currency for a
83
customer.
84
(38)
“Virtual currency kiosk business” or “kiosk business”
85
means a corporation, limited liability company, limited
86
liability partnership, or foreign entity qualified to do
87
business in this state which offers virtual currency kiosk
88
services to a customer in this state.
89
(39)
“Virtual currency kiosk transaction” means the process
90
by which a customer uses a virtual currency kiosk to exchange
91
virtual currency for fiat currency or other virtual currency. A
92
transaction begins at the point at which the customer is able to
93
initiate a transaction after the customer is given the option to
94
select the type of transaction or account and does not include
95
any of the screens that display the required terms and
96
conditions, disclaimers, or attestations.
97 Section 2. Paragraph (b) of subsection (2) of section
98 560.105, Florida Statutes, is amended to read:
99 560.105 Supervisory powers; rulemaking.—
100 (2) The commission may adopt rules pursuant to ss.
101 120.536(1) and 120.54 to administer this chapter.
102 (b) Rules adopted to regulate money services businesses,
103 including deferred presentment providers
and
virtual currency
104
kiosk businesses
, must be responsive to changes in economic
105 conditions, technology, and industry practices.
106 Section 3. Paragraph (w) of subsection (1) of section
107 560.114, Florida Statutes, is amended to read:
108 560.114 Disciplinary actions; penalties.—
109 (1) The following actions by a money services business,
110 authorized vendor, or affiliated party constitute grounds for
111 the issuance of a cease and desist order; the issuance of a
112 removal order; the denial, suspension, or revocation of a
113 license; or taking any other action within the authority of the
114 office pursuant to this chapter:
115 (w) Engaging or advertising engagement in the business of a
116 money services business or deferred presentment provider without
117 a license
or registration
, unless exempted from licensure
or
118
registration
.
119 Section 4. Section 560.125, Florida Statutes, is amended to
120 read:
121 560.125 Unlicensed
or unregistered
activity; penalties.—
122 (1) A person may not engage in the business of a money
123 services business or deferred presentment provider in this state
124 unless the person is licensed
or registered,
or exempted from
125 licensure
or registration
under this chapter. A deferred
126 presentment transaction conducted by a person not authorized to
127 conduct such transaction under this chapter is void, and the
128 unauthorized person has no right to collect, receive, or retain
129 any principal, interest, or charges relating to such
130 transaction.
131 (2) Only a money services business licensed under part II
132 of this chapter may appoint an authorized vendor. Any person
133 acting as a vendor for an unlicensed money transmitter or
134 payment instrument issuer becomes the principal thereof, and no
135 longer merely acts as a vendor, and is liable to the holder or
136 remitter as a principal money transmitter or payment instrument
137 seller.
138 (3) Any person whose substantial interests are affected by
139 a proceeding brought by the office pursuant to this chapter may,
140 pursuant to s. 560.113, petition any court of competent
141 jurisdiction to enjoin the person or activity that is the
142 subject of the proceeding from violating any of the provisions
143 of this section. For the purpose of this subsection, any money
144 services business licensed under this chapter, any person
145 residing in this state, and any person whose principal place of
146 business is in this state are presumed to be substantially
147 affected. In addition, the interests of a trade organization or
148 association are deemed substantially affected if the interests
149 of any of its members are affected.
150 (4) The office may issue and serve upon any person who
151 violates any of the provisions of this section a complaint
152 seeking a cease and desist order or impose an administrative
153 fine as provided in s. 560.114.
154 (5) A person who violates this section, if the violation
155 involves:
156 (a) Currency, monetary value, payment instruments, or
157 virtual currency of a value exceeding $300 but less than $20,000
158 in any 12-month period, commits a felony of the third degree,
159 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
160 (b) Currency, monetary value, payment instruments, or
161 virtual currency of a value totaling or exceeding $20,000 but
162 less than $100,000 in any 12-month period, commits a felony of
163 the second degree, punishable as provided in s. 775.082, s.
164 775.083, or s. 775.084.
165 (c) Currency, monetary value, payment instruments, or
166 virtual currency of a value totaling or exceeding $100,000 in
167 any 12-month period, commits a felony of the first degree,
168 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
169 (6) In addition to the penalties authorized by s. 775.082,
170 s. 775.083, or s. 775.084, a person who has been convicted of,
171 or entered a plea of guilty or nolo contendere to, having
172 violated this section may be sentenced to pay a fine of up to
173 the greater of $250,000 or twice the value of the currency,
174 monetary value, payment instruments, or virtual currency, except
175 that on a second or subsequent violation of this section the
176 fine may be up to the greater of $500,000 or quintuple the value
177 of the currency, monetary value, payment instruments, or virtual
178 currency.
179 (7) A person who violates this section is also liable for a
180 civil penalty of up to the greater of the value of the currency,
181 monetary value, payment instruments, or virtual currency
182 involved or $25,000.
183 (8) In any prosecution brought pursuant to this section,
184 the common law corpus delicti rule does not apply. The
185 defendant’s confession or admission is admissible during trial
186 without the state having to prove the corpus delicti if the
187 court finds in a hearing conducted outside the presence of the
188 jury that the defendant’s confession or admission is
189 trustworthy. Before the court admits the defendant’s confession
190 or admission, the state must prove by a preponderance of the
191 evidence that there is sufficient corroborating evidence that
192 tends to establish the trustworthiness of the statement by the
193 defendant. Hearsay evidence is admissible during the
194 presentation of evidence at the hearing. In making its
195 determination, the court may consider all relevant corroborating
196 evidence, including the defendant’s statements.
197 Section 5.
Part V of chapter 560, Florida Statutes,
198
consisting of ss. 560.501-560.507, Florida Statutes, is created
199
and entitled “Virtual Currency Kiosk Businesses.”
200 Section 6. Section 560.501, Florida Statutes, is created to
201 read:
202
560.501
Definitions.—For purposes of this part, the term:
203
(1)
“Blockchain” means a mathematically secured,
204
chronological, decentralized, distributed, and digital ledger or
205
database that consists of records of transactions that cannot be
206
altered retroactively.
207
(2)
“Blockchain analytics” means the process of examining,
208
monitoring, and gathering insights from the data and transaction
209
patterns on a blockchain network. The primary aims of blockchain
210
analytics are to understand and monitor the network’s health,
211
track transaction flows, and identify potential security
212
threats, including illicit activity, in order to extract
213
actionable insights.
214
(3) “Daily transaction limit
” means a new customer being
215
limited to no more than $2,000 in transactions per calendar day,
216
or an existing customer being limited to no more than $10,000 in
217
transactions per calendar day
, whether through a single
218
transaction or multiple transactions
or whether through one or
219
more virtual currency kiosks.
220
(
4
)
“Existing customer” means a customer who has transacted
221
with
a
kiosk business
o
n its
virtual currency kiosk for 7 or
222
more days.
223
(
5
)
“New customer” means a customer who has transacted with
224
a
kiosk business
o
n its
virtual currency kiosk for fewer than 7
225
days.
226
(6) “Registrant” means a corporation, limited liability
227
company, limited liability partnership, or foreign entity
228
qualified to do business in this state which offers virtual
229
currency kiosk services and receives notice from the office that
230
the agency has granted an application for registration pursuant
231
to the provisions of this part.
232
(
7
)
“Transaction hash” means a unique identifier consisting
233
of a string of characters
which
provides a verifiable record
234
that a transaction has been confirmed and added to the
235
blockchain.
236
(
8
)
“Wallet” means hardware or software that enable
s
a
237
customer to store
,
use
, send, receive, and spend
virtual
238
currency
or store virtual currency private keys or passcodes
239
enabling the same.
240 Section 7. Effective March 1, 2027, section 560.502,
241 Florida Statutes, is created to read:
242
560.502
Registration required; exemptions; penalties.—
243
(1)
Except as provided in subsection (2), a virtual
244
currency kiosk business may not operate in this state without
245
first registering, or renewing its registration,
in accordance
246
with s. 560.503. The office
shall
give written notice to each
247
applicant that the
office
has granted or denied the application
248
for registration.
249
(2)
A money transmitter that is licensed as a money
250
services business pursuant to s. 560.141 and offers virtual
251
currency kiosk services is exempt from registration as a virtual
252
currency kiosk business but is subject to ss. 560.504, 560.505,
253
560.506, and 560.507.
254
(3)
An entity, in the course of its business, may not act
255
as an intermediary with the ability to unilaterally execute or
256
indefinitely prevent a virtual currency kiosk transaction, or
257
otherwise meet the definition of a money transmitter as defined
258
in s. 560.103, without being licensed as a money services
259
business pursuant to s. 560.141.
260
(4)
A virtual currency kiosk business registration issued
261
under this part is not transferable or assignable.
262 Section 8. Section 560.503, Florida Statutes, is created to
263 read:
264
560.503
Registration applications.—
265
(1)
To apply to be registered as a virtual currency kiosk
266
business under this part, the applicant must submit all of the
267
following information to the office:
268
(a)
A completed registration application on forms
269
prescribed by rule of the commission. The application must
270
include the following information:
271
1.
The legal name, including any fictitious or trade names
272
used by the applicant in the conduct of its business, and the
273
physical and mailing addresses of the applicant.
274
2.
The date of the applicant’s formation and the state in
275
which the applicant was formed, if applicable.
276
3.
The name, social security number, alien identification
277
or taxpayer identification number, business and residence
278
addresses, and employment history for the past 5 years for each
279
control person as defined in s. 560.103.
280
4.
A description of the organizational structure of the
281
applicant, including the identity of any parent or subsidiary of
282
the applicant, and the disclosure of whether any parent or
283
subsidiary is publicly traded.
284
5.
The name and mailing address of the registered agent in
285
this state for service of process.
286
6.
The physical address of the location of each virtual
287
currency kiosk through which the applicant proposes to conduct
288
or is conducting business in this state.
289
7. An attestation that the applicant has developed clearly
290
documented policies, processes, and procedures regarding the use
291
of blockchain analytics to prevent transfers to wallet addresses
292
linked to known criminal activity, including the manner in which
293
such blockchain analytics activity will integrate into its
294
compliance controls, and that the applicant will maintain and
295
comply with such blockchain analytics policies, processes, and
296
procedures.
297
8.
Any other information as required by this chapter or
298
commission rule.
299
(b)
Any information needed to resolve any deficiencies
300
found in the application within a time period prescribed by
301
rule.
302
(2) A virtual currency kiosk business operating in this
303
state on or before January 1, 2027, must submit a registration
304
application to the office within 30 days after that date.
305
(3)
A registrant shall report, on a form prescribed by rule
306
of the commission, any change in the information contained in
307
the initial application form or an amendment thereto within 30
308
days after the change is effective.
309
(4)
A registrant must renew its registration annually on or
310
before December 31 of the year preceding the expiration date of
311
the registration. To renew such registration, the registrant
312
must submit a renewal application that provides:
313
(a)
The information required in paragraph (1)(a) if there
314
are changes in the application information, or an affidavit
315
signed by the registrant that the information remains the same
316
as the prior year’s information.
317
(b)
Upon request by the office, evidence that the
318
registrant has been operating in compliance with ss. 560.504,
319
560.505, 560.506, and 560.507. Such evidence may be prescribed
320
by rule by the commission and may include, but need not be
321
limited to, all of the following:
322
1.
Current disclosures presented to customers during the
323
transaction process.
324
2.
Current use of blockchain analytics to prevent transfers
325
to wallet addresses linked to known criminal activity.
326
(5)
A registrant that does not renew its registration by
327
December 31 of the year preceding expiration shall be made
328
inactive for 60 days. A registrant may not conduct business
329
while its registration is inactive.
330
(6)
To renew an inactive registration, a
registrant
must,
331
within 60 days after the registration becomes inactive, submit
332
all of the following
:
333
(a)
The information required in paragraph (1)(a) if there
334
are changes in the application information, or an affidavit
335
signed by the registrant that the information remains the same
336
as the prior year’s information.
337
(b)
Evidence that the registrant was operating in
338
compliance with ss. 560.504, 560.505, 560.506, and 560.507. Such
339
evidence may be prescribed by rule by the commission and may
340
include, but need not be limited to, all of the following:
341
1.
Current disclosures presented to customers during the
342
transaction process.
343
2. Reports that confirm compliance with daily transaction
344
limits.
345
3. Copies of receipts provided to customers.
346
4. Records showing refunds provided to customers in
347
required circumstances.
348
5.
Current use of blockchain analytics to prevent transfers
349
to wallet addresses linked to known criminal activity.
350
351
Any renewal registration made pursuant to this subsection
352
becomes effective upon the date the office approves the
353
application for registration. The office shall approve the
354
application for renewal registration within a timeframe
355
prescribed by rule.
356
(7)
Except as provided in s. 560.502(2), failure to submit
357
an application to renew a virtual currency kiosk business’s
358
registration within 60 days after the registration becomes
359
inactive shall result in the registration becoming expired. If
360
the registration is expired, a new application to register the
361
virtual currency kiosk business pursuant to subsection (1) must
362
be submitted to the office and a certification of registration
363
must be issued by the office before the virtual currency kiosk
364
business may conduct business in this state.
365
(8)
If a control person of a registrant or prospective
366
registrant has engaged in any unlawful business practice, or
367
been convicted or found guilty of, or pled guilty or nolo
368
contendere to, regardless of adjudication, a crime involving
369
dishonest dealing, fraud, acts of moral turpitude, or other acts
370
that reflect an inability to engage lawfully in the business of
371
a registered virtual currency kiosk business, the office may
372
deny the prospective registrant’s initial registration
373
application or the registrant’s renewal application.
374
(9)
The office shall deny the application of a virtual
375
currency kiosk business that submits
a renewal application and
376
fails to provide evidence of compliance upon request pursuant to
377
paragraph (4)(b) or as required in paragraph (6)(b).
378
(10)
Any false statement made by a virtual currency kiosk
379
business in an application for registration under this section
380
renders the registration void. A void registration may not be
381
construed as creating a defense to any prosecution for violation
382
of this chapter.
383 Section 9. Section 560.504, Florida Statutes, is created to
384 read:
385
560.504
Disclosures.—
Before a customer initiate
s
a virtual
386
currency kiosk transaction,
a virtual currency
kiosk
business
387
must ensure that
its
virtual currency kiosk
:
388
(1) Requires the customer to confirm whether the customer
389
has conducted any transactions at another virtual currency kiosk
390
on the same calendar day and any amount of such transactions to
391
determine how much, if any, the customer may transact at the
392
virtual currency kiosk before reaching the appropriate daily
393
transaction limit.
394
(2) C
learly and conspicuously
display the following
395
disclosure
to the customer
on the screen:
396
397
WARNING: FRAUD OFTEN STARTS WITH CONTACT FROM A
398
STRANGER. IF YOU HAVE BEEN DIRECTED TO THIS MACHINE BY
399
SOMEONE CLAIMING TO BE A GOVERNMENT AGENT, BILL
400
COLLECTOR, LAW ENFORCEMENT OFFICER, OR ANYONE YOU DO
401
NOT KNOW PERSONALLY, STOP THIS TRANSACTION IMMEDIATELY
402
AND CONTACT YOUR FINANCIAL ADVISOR OR LOCAL LAW
403
ENFORCEMENT
.
404
405 Section 10. Section 560.505, Florida Statutes, is created
406 to read:
407
560.505
Transaction limits.—A
virtual currency kiosk
408
business
may not permit a new customer to transact more than
409
$2,000 per calendar day
,
whether through a single transaction or
410
multiple transactions
or whether through one or more virtual
411
currency kiosks
.
A
virtual currency kiosk
business
may not
412
permit an existing customer to transact more than $
10,000
per
413
calendar day
,
whether through a single transaction or multiple
414
transactions
or whether through one or more virtual currency
415
kiosks
.
416 Section 11. Section 560.506, Florida Statutes, is created
417 to read:
418
560.506
Mandatory receipt.—
Upon completion of a virtual
419
currency transaction, the
virtual currency kiosk
business
must
420
provide the customer with
a choice of a physical or
electronic
421
receipt that includes
all of the following
:
422
(
1
)
The name and contact information of the
virtual
423
currency kiosk business
, including
an e-mail address and
a toll
424
free telephone number
for such business
.
425
(
2
)
The date, time,
amount of the transaction in United
426
States dollars
, and type of transaction
.
427
(
3
)
The transaction hash and each
wallet
used
.
428
(
4
)
The total fee charged
for the transaction
.
429
(
5
)
The exchange rate, if applicable
.
430
(
6
)
A statement of the
virtual currency kiosk’s
liability,
431
if any, for nondelivery or delayed delivery of the
virtual
432
currency
.
433
(
7
)
The refund policy of the
virtual currency kiosk
434
business
.
435 Section 12. Section 560.507, Florida Statutes, is created
436 to read:
437
560.507
Mandatory refund.—A virtual currency kiosk business
438
must issue a full refund within 72 hours to a customer for the
439
customer’s first virtual currency transaction if all of the
440
following conditions are met:
441
(1)
Within 60 days, the customer notifies the virtual
442
currency kiosk business and a law enforcement or governmental
443
agency regarding the fraudulent nature of the transaction.
444
(2)
The customer provides proof of the alleged fraud to the
445
virtual currency kiosk business
, such as a police report or a
446
notarized affidavit.
447 Section 13. Except as otherwise expressly provided in this
448 act, this act shall take effect January 1, 2027.