Virtual currency kiosks; require licensure in accordance with Money Transmission Modernization Act.

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To: Banking and Financial
Services
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representative Aguirre

HOUSE BILL NO. 1625
(As Sent to Governor)

AN ACT TO CREATE THE MISSISSIPPI VIRTUAL CURRENCY KIOSK 1
CONSUMER PROTECTION ACT; TO PROHIBIT A PERSON FROM OPERATING A 2
VIRTUAL CURRENCY KIOSK WITHOUT BEING LICENSED UNDER THE MONEY 3
TRANSMISSION MODERNIZATION ACT; TO DEFINE TERMS; TO REQUIRE 4
CERTAIN DISCLOSURES BY VIRTUAL CURRENCY KIOSK OPERATORS REGARDING 5
THE RISKS OF VIRTUAL CURRENCY KIOSK TRANSACTIONS; TO IMPLEMENT 6
CERTAIN FRAUD PREVENTION MEASURES; TO REQUIRE VIRTUAL CURRENCY 7
KIOSK OPERATORS TO PROVIDE RECEIPTS TO CUSTOMERS; TO PROVIDE 8
CERTAIN TRANSACTION LIMITS FOR NEW CUSTOMERS AND FOR EXISTING 9
CUSTOMERS; TO AMEND SECTIONS 75-16-21 AND 75-16-69, MISSISSIPPI 10
CODE OF 1972, TO CONFORM WITH THE PROVISIONS OF THIS ACT; AND FOR 11
RELATED PURPOSES. 12
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 13
SECTION 1. This act shall be known and may be cited as the 14
"Mississippi Virtual Currency Kiosk Consumer Protection Act." 15
SECTION 2. The definitions provided in Section 75-16-5 shall 16
also apply to the terms used in this act, and for the purposes of 17
this act, the following terms have the meanings as defined in this 18
section, unless the context clearly indicates otherwise: 19
(a) "Blockchain analytics" means the analysis of data 20
from blockchains or public distributed ledgers, including 21
associated transaction information to provide risk-specific 22
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information about virtual currency transactions and virtual 23
currency addresses. 24
(b) "Blockchain analytics software" means a software 25
service that uses blockchain analytics data to provide 26
risk-specific information about virtual currency wallet addresses, 27
among other things. 28
(c) "Commissioner" means the Commissioner of Banking 29
and Consumer Finance. 30
(d) "Elder adult" means a person who is sixty (60) 31
years of age or older. 32
(e) "Existing customer" means an individual who is not 33
a new customer. 34
(f) "New customer" means an individual who has never 35
previously transacted with the virtual currency kiosk operator. 36
The new customer shall remain defined as such during the 37
fourteen-day period after the first virtual currency kiosk 38
transaction with the virtual currency kiosk operator. 39
(g) "Transaction hash" means a unique identifier made 40
up of a string of characters that acts as a record of and provides 41
proof that the transaction was verified and added to the 42
blockchain. 43
(h) "Unique identifier" means a number or other 44
identifier that is assigned by a protocol established by the 45
automated licensing system approved operator. This will be 46
determined by valid identification. 47
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(i) "Virtual currency address" means an alphanumeric 48
identifier associated with a virtual currency wallet identifying 49
the location to which a virtual currency transaction can be sent. 50
(j) "Virtual currency kiosk" means a stand-alone 51
automated platform through which a consumer may deposit or receive 52
cash or use a credit or debit card to obtain virtual currency 53
services. 54
(k) "Virtual currency kiosk operator" means a person 55
that engages in virtual currency business activity through a 56
virtual currency kiosk located in this state or a person that 57
owns, operates or manages a virtual currency kiosk located in this 58
state through which virtual currency business activity is offered. 59
(l) "Virtual currency kiosk transaction" means a 60
transaction made at a virtual currency kiosk to purchase virtual 61
currency with U.S. dollars or to sell virtual currency for U.S. 62
dollars. 63
(m) "Virtual currency storage" means: 64
(i) Maintaining possession, custody or control 65
over virtual currency on behalf of another person, including as a 66
virtual currency control-services vendor; 67
(ii) Issuing, transferring or otherwise granting 68
or providing to any person in this state any claim or right or any 69
physical, digital or electronic instrument, receipt, certificate 70
or record representing any claim or right to receive, redeem, 71
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withdraw, transfer, exchange or control any virtual currency or 72
amount of virtual currency; or 73
(iii) Receiving possession, custody or control 74
over virtual currency from a person in this state in return for a 75
promise or obligation to return, repay, exchange or transfer such 76
virtual currency or a like amount of such virtual currency. 77
(n) "Virtual currency wallet" means a software 78
application or other mechanism providing a means for holding, 79
storing and transferring virtual currency. 80
SECTION 3. (1) A virtual currency kiosk operator may not 81
engage in virtual currency kiosk activity or hold itself out as 82
being able to engage in such activity with or on behalf of another 83
person without having first obtained a license under the Money 84
Transmission Modernization Act, Section 75-16-1 et seq. 85
(2) A virtual currency kiosk operator shall comply with all 86
requirements of a money transmitter and shall be subject to the 87
provisions of the Money Transmission Modernization Act, including 88
all duties, requirements and fees imposed on licensees, and the 89
Mississippi Department of Banking and Consumer Finance shall 90
exercise all power and authority and perform all duties with 91
respect to virtual currency kiosk operators as are provided in the 92
Money Transmission Modernization Act; however, in the case of a 93
conflict, the provisions of this act shall control. 94
SECTION 4. (1) A virtual currency kiosk operator may not 95
use any sign or handwritten or printed paper using the words 96
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"automatic teller machine" or "ATM" or any other words in a manner 97
reasonably calculated to convey the impression that the entity is 98
engaged in the business of banking unless the act is done by or on 99
behalf of an entity conducting banking activities pursuant to 100
Title 81, Mississippi Code of 1972. 101
(2) Nothing in this section shall prohibit the commissioner 102
from making a determination that a name proposed to be registered 103
is potentially misleading to the public and requiring the 104
registrant to select a name that is not potentially misleading. 105
SECTION 5. (1) (a) The virtual currency kiosk operator, in 106
establishing a relationship with a customer and before entering 107
into an initial virtual currency kiosk transaction for, on behalf 108
of or with the customer, shall disclose in clear, conspicuous and 109
legible writing, both: (i) in English; and (ii) in the language 110
principally used by the licensee or authorized delegate to 111
advertise, solicit or negotiate, either orally or in writing, for 112
a transaction conducted in person, electronically or by phone, if 113
other than English; all material risks generally associated with 114
virtual currency. 115
(b) The material risks associated with virtual currency 116
required to be disclosed under paragraph (a) of this subsection 117
(1) include, but are not limited to: 118
(i) A disclosure that is acknowledged by the 119
customer and provided separately from the disclosures provided 120
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under subparagraphs (ii) and (vii) of this paragraph (b), and 121
written prominently and in bold type, stating the following: 122
WARNING: CONSUMER FRAUD OFTEN STARTS WITH CONTACT FROM A 123
STRANGER WHO IS INITIATING A DISHONEST SCHEME. I UNDERSTAND THAT 124
CRIMINAL ACTIVITY MAY APPEAR IN MANY FORMS, INCLUDING: 125
(1) Claims of a frozen bank account or credit card. 126
(2) Fraudulent bank transactions. 127
(3) Claims of identity theft or job offerings in exchange for 128
payments. 129
(4) Requests for payments to government agencies or 130
companies. 131
(5) Requests for disaster relief donations or loans. 132
(6) Offers to purchase tickets for lotteries, sweepstakes, or 133
drawings for vehicles. 134
(7) Prompts to click on desktop popups, such as virus 135
warnings or communication from alleged familiar merchants. 136
(8) Communication from someone impersonating a representative 137
of your bank or a law enforcement officer. 138
IF YOU BELIEVE YOU ARE BEING SCAMMED, CALL A LOCAL LAW 139
ENFORCEMENT OFFICER BEFORE ANY TRANSACTION. 140
WARNING: FUNDS LOST DUE TO USER ERROR OR FRAUD MAY NOT BE 141
RECOVERABLE. TRANSACTIONS CONDUCTED ON THIS VIRTUAL CURRENCY KIOSK 142
ARE IRREVERSIBLE. I UNDERSTAND THESE RISKS AND WISH TO CONTINUE 143
WITH CONDUCTING MY VIRTUAL CURRENCY KIOSK TRANSACTION. PROTECT 144
YOURSELF FROM FRAUD. NEVER SEND MONEY TO SOMEONE YOU DO NOT KNOW. 145
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(ii) Virtual currency is not backed or insured by 146
the government, and accounts and value balances are not subject to 147
protections of the Federal Deposit Insurance Corporation, National 148
Credit Union Administration, or Securities Investor Protection 149
Corporation; 150
(iii) A virtual currency transaction may be deemed 151
to be made when recorded on a public ledger, which may not be the 152
date or time when the customer initiates the virtual currency 153
transaction; 154
(iv) The value of virtual currency may be derived 155
from the continued willingness of market participants to exchange 156
fiat currency for virtual currency, which may result in the 157
permanent and total loss of the value of a particular virtual 158
currency if the market for that virtual currency disappears; 159
(v) The volatility and unpredictability of the 160
price of virtual currency relative to fiat currency may result in 161
a significant loss over a short period of time; 162
(vi) A bond maintained by the virtual currency 163
kiosk operator for the benefit of the customers of the virtual 164
currency kiosk operator may not be sufficient to cover all losses 165
incurred by customers; and 166
(vii) Virtual currency transactions are 167
irreversible and may be used by a person seeking to defraud 168
customers. As used in this subparagraph (vii), "seeking to 169
defraud customers" includes, but is not limited to: 170
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1. Impersonating a customer's family or 171
friends; 172
2. Threatening jail time; 173
3. Stating that a customer's identity has 174
been stolen; 175
4. Insisting that a customer withdraw money 176
from the customer's bank account and purchase virtual currency; or 177
5. Alleging that a customer's personal 178
computer has been hacked. 179
(2) (a) A virtual currency kiosk operator, when opening an 180
account for a new customer and before entering into an initial 181
virtual currency transaction for, on behalf of, or with the 182
customer, shall disclose in clear, conspicuous and legible 183
writing, using not less than twenty-four (24) point 184
sans-serif-type font, both: (i) in English; and (ii) in the 185
language principally used by the licensee or authorized delegate 186
to advertise, solicit or negotiate, either orally or in writing, 187
for a transaction conducted in person, electronically or by phone, 188
if other than English; using not less than twenty-four (24) point 189
sans-serif-type font, all relevant terms and conditions associated 190
with the products, services and activities of the virtual currency 191
kiosk operator and virtual currency generally. 192
(b) The disclosure required under paragraph (a) of this 193
subsection (2) shall include, but is not limited to: 194
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(i) The customer's liability for unauthorized 195
virtual currency transactions; 196
(ii) The customer's right to stop payment of a 197
preauthorized virtual currency transfer and the procedure used to 198
initiate a stop-payment order; 199
(iii) The circumstances under which the virtual 200
currency kiosk operator, absent a court or government order, will 201
disclose information concerning the customer's account to third 202
parties; 203
(iv) The requirement that the virtual currency 204
kiosk operator communicate to the customer what customer 205
information may be disclosed to third parties; 206
(v) The customer's right to receive a receipt for 207
a virtual currency transaction at the time of the transaction; 208
(vi) Upon a change in the rules or policies of the 209
operator, the customer's right to consent to the changed rules or 210
policies before performing a transaction after the change; and 211
(vii) Any other disclosures that are customarily 212
provided in connection with opening a person's account. 213
(3) (a) A virtual currency kiosk operator, before each 214
transaction in virtual currency for, on behalf of, or with a 215
customer, shall disclose to the customer in an easily readable 216
manner that is in clear, conspicuous and legible writing, using 217
not less than twenty-four (24) point sans-serif-type font, both: 218
(i) in English; and (ii) in the language principally used by the 219
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licensee or authorized delegate to advertise, solicit or 220
negotiate, either orally or in writing, for a transaction 221
conducted in person, electronically or by phone, if other than 222
English; the terms and conditions of the virtual currency 223
transaction. 224
(b) The terms and conditions required under paragraph 225
(a) of this subsection (3) shall include, but are not limited to: 226
(i) The amount of the transaction; 227
(ii) The total amount of all fees, expenses, 228
commissions and charges borne by the customer, including, but not 229
limited to, applicable exchange rates, displayed both as a dollar 230
amount and as a percentage of the transaction; 231
(iii) The type and nature of the virtual currency 232
transaction; 233
(iv) A warning that, once executed, the virtual 234
currency transaction may not be undone, if applicable; 235
(v) A daily virtual currency transaction limit; 236
(vi) The difference in the sale price of the 237
virtual currency versus the current market price; and 238
(vii) Any other disclosures that are customarily 239
given in connection with a virtual currency transaction. 240
(4) A virtual currency kiosk operator shall ensure that each 241
customer acknowledges receipt of all disclosures required under 242
this section. 243
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(5) (a) Before the acceptance of any cash or funding for a 244
virtual currency transaction, a virtual currency kiosk operator 245
must require every customer, regardless of age, to respond to the 246
following requests: 247
(i) Enter the name, job title, and employer or 248
company represented by the person instructing you to use this 249
machine. 250
(ii) If no one is instructing you to use this 251
machine, click the box that says "I am not on the phone with 252
anyone," and enter the purpose for which you are buying virtual 253
currency. 254
(b) Additionally, the virtual currency kiosk operator 255
must require the customer to answer at least five (5) of the 256
following questions, which shall be generated randomly so that the 257
same five (5) questions do not appear before each transaction: 258
(i) "Are you sending this money in response to a 259
demand for payment to unfreeze a bank account, investment account 260
or credit card?" 261
(ii) "Are you sending this money to someone 262
offering a job or some other financial benefit, such as the 263
purchase of lottery tickets, sweepstakes entries or prize 264
drawings?" 265
(iii) "Are you sending this money to someone 266
claiming to be a representative of a financial institution, such 267
as a bank, mortgage company or loan company, or a bill collector?" 268
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(iv) "Are you sending this money to someone 269
claiming to be a law enforcement officer or representative of a 270
government agency?" 271
(v) "Are you sending this money to someone 272
claiming to represent a disaster relief organization or some other 273
type of charitable organization?" 274
(vi) "Are you sending this money in response to a 275
prompt from a popup message on your computer desktop, an email, a 276
text message, a telephone call, or some other communication from 277
an unknown merchant containing computer virus or fraud warnings?" 278
(vii) "Are you sending this money to someone posing 279
as a romantic partner or potential business partner whom you have 280
never met in a face-to-face, in-person meeting?" 281
(viii) "Are you sending this money to someone 282
threatening you or a relative or loved one with arrest, fines, 283
fees, a lawsuit, foreclosure or repossession?" 284
(ix) "Are you sending this money in response to a 285
threat of any kind, including physical, financial or reputational 286
harm, to you, a relative or a loved one?" 287
(c) Each question must appear separately and require a 288
response via an on-screen prompt, except as provided for elder 289
adults in Section 8 of this act, before proceeding to the next 290
question. If the customer enters a name in response to the 291
request in paragraph (a)(i) of this subsection (5), or responds 292
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with "yes" or with a similar affirmative answer to any question 293
asked under paragraph (b) of this subsection (5): 294
(i) The transaction shall be declined and voided 295
upon completion of the questions; 296
(ii) The virtual currency kiosk must display a 297
"Fraud Warning" that instructs the customer to contact local law 298
enforcement; and 299
(iii) The virtual currency kiosk operator shall 300
not collect any fees or funds from the customer. 301
(d) The security questions provided in paragraphs (a) 302
and (b) of this subsection (5) shall be implemented by all virtual 303
currency kiosk operators no later than January 1, 2027. 304
SECTION 6. (1) A virtual currency kiosk operator, upon the 305
completion of a virtual currency transaction, shall provide to the 306
customer a receipt, in both physical (paper) and electronic (email 307
or SMS) form, containing: 308
(a) The name of, and contact information for, the 309
virtual currency kiosk operator, including, but not limited to, 310
the virtual currency kiosk operator's business address and a 311
customer service telephone number established by the virtual 312
currency kiosk operator to answer questions and register 313
complaints; 314
(b) The name of the customer; 315
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(c) The type, value, date and precise time of the 316
virtual currency transaction, transaction hash or identification 317
number, and each virtual currency address; 318
(d) The amount of the virtual currency transaction 319
expressed in United States currency; 320
(e) The public virtual currency address of the 321
customer; 322
(f) The unique identifier of the virtual currency kiosk 323
operator; 324
(g) The full amount of each fee charged, including, but 325
not limited to, a fee charged directly or indirectly by the 326
virtual currency kiosk operator, or a third party involved in the 327
virtual currency transaction; 328
(h) The exchange rate, if applicable; 329
(i) Any tax collected by the virtual currency kiosk 330
operator for the virtual currency transaction; 331
(j) A statement of the liability of the virtual 332
currency kiosk operator for nondelivery or delayed delivery; 333
(k) A statement of the refund policy of the virtual 334
currency kiosk operator and instructions on how to obtain a 335
refund, including the email address, web address or telephone 336
number the customer should use to request a refund and the time 337
limits within which to obtain a refund; 338
(l) The name and telephone number of the Department of 339
Banking and Consumer Finance and a statement disclosing that the 340
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virtual currency kiosk operator's customers may contact the 341
department with questions or complaints about the virtual currency 342
kiosk operator's virtual currency kiosk services or the refund 343
process; and 344
(m) Any additional information the commissioner may 345
require. 346
(2) The receipt required under subsection (1) of this 347
section shall be provided in: 348
(a) A retainable form; 349
(b) English; and 350
(c) The language principally used by the virtual 351
currency kiosk operator to advertise, solicit or negotiate, orally 352
or in writing. 353
SECTION 7. (1) A virtual currency kiosk operator shall not 354
accept transactions of more than One Thousand Dollars ($1,000.00) 355
per day in cash or the equivalent in virtual currency for new 356
customers and Seven Thousand Five Hundred Dollars ($7,500.00) per 357
day in cash or the equivalent in virtual currency for existing 358
customers. 359
(2) A virtual currency kiosk operator shall hold the funds 360
received in the first virtual currency kiosk transaction by a new 361
customer in a non-interest-bearing account for a period of 362
ninety-six (96) hours before completing the transaction, and the 363
new customer may not carry out another transaction during the 364
ninety-six-hour holding period. After the ninety-six-hour period 365
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following the first transaction, the new customer may make daily 366
transactions. 367
(3) The transaction limit for new customers shall not exceed 368
Five Thousand Dollars ($5,000.00) in cash or the equivalent in 369
virtual currency in the fourteen-day period after the first 370
virtual currency kiosk transaction with the virtual currency kiosk 371
operator. 372
(4) The virtual currency kiosk operator shall issue a refund 373
of the full amount of the transaction if requested by the customer 374
within the initial ninety-six-hour holding period under subsection 375
(2) of this section. 376
SECTION 8. (1) As used in this section, the following terms 377
have the meanings as defined in this subsection: 378
(a) "Live screening" means a real-time, audio-visual 379
interaction between the customer at the virtual currency kiosk and 380
a live representative of the virtual currency kiosk operator, 381
conducted via a camera and microphone integrated into the virtual 382
currency kiosk. 383
(b) "Third-party coaching" means an interaction between 384
a customer and a third party during which the customer 385
communicates with, or receives instructions from, a third party 386
via telephone or other electronic device during the course of a 387
virtual currency kiosk transaction. 388
(2) Upon the request of a customer, a virtual currency kiosk 389
operator shall issue a refund to a new customer for the full 390
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amount of all transactions made within the fourteen-day new 391
customer time period. In order to receive a refund under this 392
subsection (2), a new customer must have: 393
(a) Been fraudulently induced to engage in the virtual 394
currency transactions; 395
(b) Contacted both the virtual currency kiosk operator 396
and a government or law enforcement entity to inform them of the 397
fraudulent nature of the transaction agency within ninety (90) 398
days of the last transaction to occur during the fourteen-day new 399
customer time period; and 400
(c) Submitted proof of the fraud incident, such as a 401
police report or sworn declaration detailing the fraudulent nature 402
of the transaction or transactions. 403
(3) Each virtual currency kiosk operator shall: 404
(a) Obtain a copy of a government-issued identification 405
card that identifies each customer of the virtual currency kiosk 406
operator; 407
(b) Maintain restrictions that prevent more than one 408
(1) customer of the virtual currency kiosk operator from using the 409
same virtual currency wallet; and 410
(c) Be able to prevent virtual currency wallets that 411
have been flagged as potentially connected to fraudulent or other 412
criminal activity from being used at a virtual currency kiosk 413
owned or operated by the virtual currency kiosk operator. 414
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(4) All virtual currency kiosks operators shall use 415
blockchain analytics software to assist in the prevention of 416
sending purchased virtual currency from a kiosk to a digital 417
wallet known to be affiliated with fraudulent, sanctioned or 418
illicit activity at the time of a transaction. The commissioner 419
may request evidence from any operator of current use of 420
blockchain analytics. 421
(5) All virtual currency kiosk operators shall take 422
reasonable steps to detect and prevent fraud, including 423
establishing and maintaining a written anti-fraud policy, which 424
shall include, but not be limited to, the following: 425
(a) The identification and assessment of fraud-related 426
risk areas; 427
(b) Procedures and controls to protect against 428
identified risks; 429
(c) Allocation of responsibility for monitoring risks; 430
and 431
(d) Procedures for the periodic evaluation and revision 432
of the anti-fraud procedures, controls and monitoring mechanisms. 433
(6) All virtual currency kiosk operators shall offer, during 434
the hours of operation of the virtual currency kiosks owned or 435
operated by the virtual currency kiosk operator, live customer 436
support by telephone from a toll-free telephone number prominently 437
displayed at or on the virtual currency kiosk. 438
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(7) All virtual currency kiosk operators shall designate a 439
customer service representative to identify and speak by telephone 440
with an elder adult who is a new customer before the elder adult 441
who is a new customer completes his or her first virtual currency 442
transaction with the virtual currency kiosk operator. During the 443
communication, which shall be recorded and retained by the 444
virtual currency kiosk operator, the virtual currency kiosk 445
operator shall: 446
(a) Reconfirm any attestations made by the new customer 447
at a virtual currency kiosk owned or operated by the virtual 448
currency kiosk operator; 449
(b) Discuss the transaction; 450
(c) Discuss types of fraudulent schemes relating to 451
virtual currency; 452
(d) Identify, through live screening or automated 453
monitoring, whether an elder adult is engaging in or receiving 454
third-party coaching; and 455
(e) Identify, through live screening or automated 456
monitoring, whether an elder adult is on the phone or using a 457
headset during the virtual currency kiosk transaction. 458
The virtual currency kiosk operator's approval of the 459
transaction shall be dependent upon the virtual currency kiosk 460
operator's assessment of the communication. 461
(8) All virtual currency kiosk operators shall designate and 462
employ a chief compliance officer who shall: 463
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(a) Be qualified to coordinate and monitor a compliance 464
program to ensure compliance with this section and all other 465
applicable federal laws and regulations and state laws and rules; 466
(b) Not own more than twenty percent (20%) of the 467
virtual currency kiosk operator that employs the officer; and 468
(c) Use full-time employees to fulfill the virtual 469
currency kiosk operator's compliance responsibilities under 470
federal laws and regulations and state laws and rules. 471
(9) If the virtual currency kiosk operator determines, 472
through live screening or automated monitoring, that a customer 473
who is an elder adult is on the phone or using a headset during 474
the virtual currency kiosk transaction: 475
(a) The virtual currency kiosk transaction must be 476
immediately halted and voided; 477
(b) The virtual currency kiosk operator shall refuse to 478
process any further virtual currency kiosk transactions for that 479
customer for a period of no less than twenty-four (24) hours; and 480
(c) The virtual currency kiosk operator shall preserve 481
and retain a record of the declined virtual currency kiosk 482
transaction and the reason for the decline. 483
SECTION 9. All virtual currency kiosk operators shall notify 484
the Mississippi Department of Banking and Consumer Finance of any 485
customer complaint or refund request within seventy-two (72) hours 486
of receipt of the customer complaint or refund request. 487
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SECTION 10. Virtual currency kiosk operators shall ensure 488
that all virtual currency kiosks are maintained in good working 489
condition so that all requirements under this act are met. 490
SECTION 11. The commissioner may exercise all power and 491
authority and perform all duties with respect to virtual currency 492
kiosk operators licensed under the Money Transmission 493
Modernization Act as are provided in that act, subject to the 494
provisions of Section 3 of this act, and the commissioner may also 495
exercise the following powers and functions: 496
(a) The commissioner may adopt rules necessary to 497
implement, administer and enforce this act. 498
(b) The commissioner may require any virtual currency 499
kiosk to be disabled or removed from its location, at the 500
operator's expense, if the operator fails to comply with the 501
requirements of this act or the Money Transmission Modernization 502
Act. Such order will remain effective until rescinded or released 503
by the commissioner or appealed as provided in Section 75-16-73. 504
(c) Whenever the commissioner believes that any person 505
is failing or omitting or is about to fail or omit to do anything 506
required by the provisions of this act, or by any order of the 507
commissioner, or is doing anything or about to do anything, or 508
permitting anything or about to permit anything to be done, 509
contrary to or in violation of this act or of any order of the 510
commissioner, the commissioner may proceed with appropriate action 511
as provided under the Money Transmission Modernization Act. 512
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SECTION 12. Sections 1 through 11 of this act shall be 513
codified in Title 75, Mississippi Code of 1972. 514
SECTION 13. Section 75-16-21, Mississippi Code of 1972, is 515
amended as follows: 516
75-16-21. License required. (1) A person may not engage in 517
the business of money transmission * * *; advertise, solicit or 518
hold itself out as providing money transmission; engage in virtual 519
currency kiosk activity; or hold itself out as a virtual currency 520
kiosk operator unless the person is licensed under this chapter. 521
(2) Subsection (1) of this section does not apply to: 522
(a) A person who is an authorized delegate of a person 523
licensed under this chapter acting within the scope of authority 524
conferred by a written contract with the licensee; or 525
(b) A person who is exempt pursuant to Section 75-16-7 526
and does not engage in money transmission outside the scope of 527
such exemption. 528
(3) A license issued under Section 75-16-29 is not 529
transferable or assignable. 530
SECTION 14. Section 75-16-69, Mississippi Code of 1972, is 531
amended as follows: 532
75-16-69. Suspension and revocation. (1) The commissioner 533
may suspend or revoke a license or order a licensee to revoke the 534
designation of an authorized delegate if: 535
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(a) The licensee or any authorized delegate, agent, or 536
representative violates this chapter or a rule or regulation 537
adopted or an order issued under this chapter; 538
(b) The licensee or any authorized delegate, agent, or 539
representative does not cooperate with an examination or 540
investigation by the commissioner; 541
(c) The licensee or any authorized delegate, agent, or 542
representative engages in fraud, intentional misrepresentation, or 543
gross negligence; 544
(d) An authorized delegate is convicted of a violation 545
of a state or federal anti-money laundering statute, or violates a 546
rule or regulation adopted or an order issued under this chapter, 547
as a result of the licensee's willful misconduct or willful 548
blindness; 549
(e) The competence, experience, character, or general 550
fitness of the licensee, authorized delegate, person in control of 551
a licensee, key individual, or responsible person of the 552
authorized delegate indicates that it is not in the public 553
interest to permit the person to provide money transmission; 554
(f) The licensee or any authorized delegate, agent, or 555
representative engages in an unsafe or unsound practice; 556
(g) The licensee is insolvent, suspends payment of its 557
obligations, or makes a general assignment for the benefit of its 558
creditors; * * * 559
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ST: Virtual currency kiosks; require licensure
in accordance with Money Transmission
Modernization Act.
(h) The licensee does not remove an authorized delegate 560
after the commissioner issues and serves upon the licensee a final 561
order including a finding that the authorized delegate has 562
violated this chapter * * *; or 563
(i) The licensee is a virtual currency kiosk operator 564
who has violated Sections 1 through 11 of this act. 565
(2) In determining whether a licensee is engaging in an 566
unsafe or unsound practice, the commissioner may consider the size 567
and condition of the licensee's money transmission, the magnitude 568
of the loss, the gravity of the violation of this chapter, and the 569
previous conduct of the person involved. 570
SECTION 15. This act shall take effect and be in force from 571
and after July 1, 2026. 572