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SECOND REGULAR SESSION
SENATE BILL NO. 1510
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR HENDERSON.
6490S.01I KRISTINA MARTIN, Secretary
AN ACT
To repeal section 361.1100, RSMo, and to enact in lieu thereof one new section relating to virtual
currency kiosks.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Section 361.1100, RSMo, is repealed and one 1
new section enacted in lieu thereof, to be known as section 2
361.1100, to read as follows:3
361.1100. 1. This section shall be known and may be 1
cited as the "Virtual Currency Kiosk Consumer Protection 2
Act". 3
2. For purposes of this section, the following terms 4
and phrases mean: 5
(1) "Bank Secrecy Act", the federal Bank Secrecy Act, 6
31 U.S.C. Section 5311, et seq., and its implementing rules 7
and regulations, as amended and recodified from time to time; 8
(2) "Blockchain", a distributed digital ledger or 9
database that is chronological, consensus-based, 10
decentralized, and mathematically verified in nature; 11
(3) "Blockchain analytics", a software service that 12
uses data from various virtual currencies and their 13
applicable blockchains to provide a risk rating specific to 14
digital wallet addresses from users of virtual currency 15
kiosks; 16
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(4) "Digital wallet", hardware or software that 17
enables individuals to store and use virtual currency; 18
(5) "Digital wallet address", an alphanumeric 19
identifier representing a destination on a blockchain for a 20
virtual currency transfer that is associated with a digital 21
wallet; 22
(6) "Director", the director of the division; 23
(7) "Division", the division of finance within the 24
department of commerce and insurance; 25
(8) "Federal Deposit Insurance Corporation or 26
Securities Investor Protection Corporation", a bank, credit 27
union, savings and loan association, trust company, savings 28
association, savings bank, industrial bank, or industrial 29
loan company organized under the laws of the United States 30
or any state of the United States, if the bank, credit 31
union, savings and loan association, trust company, savings 32
association, savings bank, industrial bank, or industrial 33
loan company has federally insured deposits; 34
(9) "Fiat currency", a medium of exchange that is 35
authorized or adopted by the United States government as 36
part of its currency and is not backed by a commodity; 37
(10) "Individual", a natural person; 38
(11) "NMLS", the Nationwide Multistate Licensing 39
System and Registry developed by the Conference of State 40
Bank Supervisors and the American Association of Residential 41
Mortgage Regulators and owned and operated by the State 42
Regulatory Registry, LLC, or any successor or affiliated 43
entity, for the licensing and registration of persons in 44
financial services industries; 45
(12) "United States PATRIOT Act", the federal Uniting 46
and Strengthening America by Providing Appropriate Tools 47
Required to Intercept and Obstruct Terrorism Act of 2001 and 48
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its implementing rules and regulations, as amended and 49
recodified from time to time; 50
(13) "Virtual currency", 51
(a) Any type of digital unit that is used as a medium 52
of exchange or a form of digitally stored value or that is 53
incorporated into payment system technology. Virtual 54
currency shall be construed to include digital units of 55
exchange that: 56
a. Have a centralized repository or administrator; 57
b. Are decentralized and have no centralized 58
repository or administrator; or 59
c. May be created or obtained by computing or 60
manufacturing effort; 61
(b) Virtual currency shall not be construed to include 62
digital units that are used: 63
a. Solely within online gaming platforms with no 64
market or application outside such gaming platforms; or 65
b. Exclusively as part of a consumer affinity or 66
rewards program, and can be applied solely as payment for 67
purchases with the issuer or other designated merchants, but 68
cannot be converted into or redeemed for fiat currency; 69
(14) "Virtual currency kiosk", an electronic terminal 70
of the virtual currency kiosk operator that enables the 71
owner or operator to facilitate the exchange of fiat 72
currency for virtual currency or virtual currency for fiat 73
currency or other virtual currency, including, but not 74
limited to: 75
(a) Connecting directly to a separate virtual currency 76
exchange that performs the actual virtual currency 77
transmission; or 78
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(b) Drawing upon the virtual currency in the 79
possession of the owner or operator of the electronic 80
terminal; 81
(15) "Virtual currency kiosk operator", a corporation, 82
limited liability company, limited liability partnership, or 83
foreign entity qualified to do business in this state that 84
operates a virtual currency kiosk within this state. 85
3. (1) Except as otherwise provided in this section, 86
all information or reports obtained by the division from a 87
virtual currency kiosk operator, and all information 88
contained in or related to an examination, investigation, 89
operating report, or condition report prepared by, on behalf 90
of, or for the use of the division in relation to a virtual 91
currency kiosk operator, are confidential and are not 92
subject to disclosure under chapter 610. 93
(2) Information contained in the records of the 94
division that is not confidential and may be available to 95
the public either on the division's website, upon receipt by 96
the division of a written request, or in NMLS shall include: 97
(a) The name, business address, telephone number, and 98
unique identifier of a virtual currency kiosk operator; 99
(b) The business address of a virtual currency kiosk 100
operator's registered agent for service; and 101
(c) Copies of any final orders of the division 102
relating to any violation of this section or regulations 103
implementing this section. 104
4. If any provision of this section is inconsistent 105
with any federal law, including, but not limited to, the 106
Bank Secrecy Act or the United States PATRIOT Act, the 107
applicable federal law shall govern to the extent of any 108
inconsistency. 109
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5. (1) The director may request evidence of 110
compliance with this section or a rule adopted or order 111
issued pursuant to this section as reasonably necessary or 112
appropriate to administer and enforce this section, and 113
other applicable law, including the Bank Secrecy Act and the 114
United States PATRIOT Act. 115
(2) A virtual currency kiosk operator shall provide 116
the director all records the director may reasonably require 117
to ensure compliance with this section. 118
6. As part of establishing a relationship with a 119
customer, and prior to entering into an initial transaction 120
for, on behalf of, or with such customer, each virtual 121
currency kiosk operator shall disclose in clear, 122
conspicuous, and legible writing in the English language, 123
whether in accessible terms of service or elsewhere, all 124
material risks associated with its products, services, and 125
activities and virtual currency generally, including 126
disclosures substantially similar to the following: 127
(1) Virtual currency is not legal tender, is not 128
backed by the government, and accounts and value balances 129
are not subject to Federal Deposit Insurance Corporation or 130
Securities Investor Protection Corporation protections; 131
(2) Legislative and regulatory changes or actions at 132
the state, federal, or international level may adversely 133
affect the use, transfer, exchange, and value of virtual 134
currency; 135
(3) Transactions in virtual currency may be 136
irreversible, and, accordingly, losses due to fraudulent or 137
accidental transactions may not be recoverable; 138
(4) Some virtual currency transactions shall be deemed 139
to be made when recorded on a public ledger, which is not 140
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necessarily the date or time that the customer initiates the 141
transaction; 142
(5) The value of virtual currency may be derived from 143
the continued willingness of market participants to exchange 144
fiat currency for virtual currency, which may result in the 145
potential for permanent and total loss of value of a 146
particular virtual currency should the market for that 147
virtual currency disappear; 148
(6) There is no assurance that a person who accepts a 149
virtual currency as payment today will continue to do so in 150
the future; 151
(7) The volatility and unpredictability of the price 152
of virtual currency relative to fiat currency may result in 153
significant loss over a short period of time; 154
(8) The nature of virtual currency may lead to an 155
increased risk of fraud or cyber attack; 156
(9) The nature of virtual currency means that any 157
technological difficulties experienced by the virtual 158
currency kiosk operator may prevent the access or use of a 159
customer's virtual currency; and 160
(10) Any bond or trust account maintained by the 161
virtual currency kiosk operator for the benefit of its 162
customers may not be sufficient to cover all losses incurred 163
by customers. 164
7. When opening an account for a new customer, and 165
prior to entering into an initial transaction for, on behalf 166
of, or with such customer, each virtual currency kiosk 167
operator shall disclose in clear, conspicuous, and legible 168
writing in the English language, whether in accessible terms 169
of service or elsewhere, all relevant terms and conditions 170
associated with its products, services, and activities and 171
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virtual currency generally, including disclosures 172
substantially similar to the following: 173
(1) The customer's liability for unauthorized virtual 174
currency transactions; 175
(2) Under what circumstances the virtual currency 176
kiosk operator will, absent a court or government order, 177
disclose information concerning the customer's account to 178
third parties; 179
(3) The customer's right to receive periodic account 180
statements and valuations from the virtual currency kiosk 181
operator; 182
(4) The customer's right to receive a receipt, trade 183
ticket, or other evidence of a transaction; 184
(5) The customer's right to prior notice of a change 185
in the virtual currency kiosk operator's rules or policies; 186
and 187
(6) Such other disclosures as are customarily given in 188
connection with the opening of customer accounts. 189
8. Prior to entering into a virtual currency 190
transaction with a customer, each virtual currency kiosk 191
operator shall ensure a warning is disclosed to a customer 192
substantially similar to the following: 193
194 Customer Notice. Please Read Carefully.
195
196
197
198
199
200
Did you receive a phone call from your
bank, software provider, the police, or
were you directed to make a payment for
Social Security, utility bill, investment,
warrants, or bail money at this kiosk?
STOP
201
202
Is anyone on the phone pressuring you to
make a payment of any kind? STOP
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9. Upon completion of any virtual currency kiosk 210
transaction, each virtual currency kiosk operator shall 211
provide to a customer a digital or physical receipt 212
containing the following information: 213
(1) The name and contact information of the virtual 214
currency kiosk operator, including a telephone number 215
established by the virtual currency kiosk operator to answer 216
questions and register complaints; 217
(2) The type, value, date, and precise time of the 218
transaction in the local time zone; 219
(3) The fee charged; 220
(4) The exchange rate, if applicable; 221
(5) A statement of the liability of the virtual 222
currency kiosk operator for nondelivery or delayed delivery; 223
and 224
(6) A statement of the refund policy of the virtual 225
currency kiosk operator. 226
10. All virtual currency kiosk operators shall use 227
blockchain analytics software to assist in the prevention of 228
sending purchased virtual currency from a virtual currency 229
kiosk operator to a digital wallet known to be affiliated 230
with fraudulent activity at the time of a transaction. The 231
division may request evidence from any virtual currency 232
kiosk operator of current use of blockchain analytics. 233
203
204
205
I understand that the purchase and sale of
cryptocurrency is a final irreversible and
nonrefundable transaction.
206
207
208
209
I confirm I am sending funds to a wallet I
own or directly have control over. I
confirm that I am using funds gained from
my own initiative to make my transaction.
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11. All virtual currency kiosk operators performing 234
business in this state shall provide live customer service 235
at a minimum on Monday through Friday between the hours of 236
8:00 a.m. and 10:00 p.m. The customer service toll-free 237
number shall be displayed on the virtual currency kiosk or 238
the virtual currency kiosk screens. 239
12. All virtual currency kiosk operators shall take 240
reasonable steps to detect and prevent fraud, including 241
establishing and maintaining a written anti-fraud policy. 242
The anti-fraud policy shall, at a minimum, include: 243
(1) The identification and assessment of fraud-related 244
risk areas; 245
(2) Procedures and controls to protect against 246
identified risks; 247
(3) Allocation of responsibility for monitoring risks; 248
and 249
(4) Procedures for the periodic evaluation and 250
revision of the anti-fraud procedures, controls, and 251
monitoring mechanisms. 252
13. (1) Each virtual currency kiosk operator shall 253
maintain, implement, and enforce a written "enhanced due 254
diligence policy". Such a policy shall be reviewed and 255
approved by the virtual currency kiosk operator's board of 256
directors or an equivalent governing body of the virtual 257
currency kiosk operator. 258
(2) The enhanced due diligence policy shall identify, 259
at minimum, individuals who are at risk of fraud based on 260
age or mental capacity. 261
14. (1) Each virtual currency kiosk operator shall 262
comply with the provisions of this section, any lawful 263
order, rule, or regulation made or issued under the 264
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provisions of this section, and all applicable federal and 265
state laws, rules, and regulations. 266
(2) Each virtual currency kiosk shall maintain, 267
implement, and enforce written compliance policies and 268
procedures. Such policies and procedures shall be reviewed 269
and approved by the virtual currency kiosk operator's board 270
of directors or an equivalent governing body of the virtual 271
currency kiosk operator. 272
15. (1) Each virtual currency kiosk operator shall 273
designate and employ a compliance officer with the following 274
requirements: 275
(a) The individual shall be qualified to coordinate 276
and monitor compliance with this section and all other 277
applicable federal and state laws, rules, and regulations; 278
(b) The individual shall be employed full time by the 279
virtual currency kiosk operator; and 280
(c) The designated compliance officer cannot be any 281
individual who owns more than twenty percent of the virtual 282
currency kiosk operator by whom the individual is employed. 283
(2) Compliance responsibilities required under federal 284
and state laws, rules, and regulations shall be completed by 285
full-time employees of the virtual currency kiosk operator. 286
16. Each virtual currency kiosk operator shall 287
designate and employ a consumer protection officer with each 288
of the following requirements: 289
(1) The individual shall be qualified to coordinate 290
and monitor compliance with this section and all other 291
applicable federal and state laws, rules, and regulations; 292
(2) The individual shall be employed full time by the 293
virtual currency kiosk operators; and 294
(3) The designated consumer protection officer cannot 295
be an individual who owns more than twenty percent of the 296
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virtual currency kiosk operator by whom the individual is 297
employed. 298
17. (1) Each virtual currency kiosk operator shall 299
submit a report to the division of the location of each 300
virtual currency kiosk located within this state within 301
forty-five days of the end of the calendar quarter. The 302
director shall formulate a system for virtual currency kiosk 303
operators to submit such locations that is consistent with 304
the requirements of this section. 305
(2) The location report shall include, at a minimum, 306
the following information regarding the location where a 307
virtual currency kiosk is located: 308
(a) Company legal name; 309
(b) Any fictitious or trade name; 310
(c) Physical address; 311
(d) Start date of operation of virtual currency kiosk 312
at location; and 313
(e) End date of operation of virtual currency kiosk at 314
location, if applicable. 315
18. (1) Any virtual currency kiosk operator who owns, 316
operates, solicits, markets, advertises, or facilitates 317
virtual currency kiosks in this state shall be deemed to be 318
engaged in money transmission and require licensure pursuant 319
to sections 361.900 to 361.1035. 320
(2) All unlicensed virtual currency kiosk operators 321
shall apply for a money transmitter license within sixty 322
days after August 28, 2025. Virtual currency kiosk 323
operators who apply within this time will be allowed to 324
continue operations while the division reviews the 325
application. Any virtual currency kiosk operator whose 326
application is denied by the division shall cease operations 327
until granted a money transmitter license. 328
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19. The division of finance may promulgate rules for 329
the purpose of implementing the provisions of this section. 330
Any rule or portion of a rule, as that term is defined in 331
section 536.010, that is created under the authority 332
delegated in this section shall become effective only if it 333
complies with and is subject to all of the provisions of 334
chapter 536 and, if applicable, section 536.028. This 335
section and chapter 536 are nonseverable and if any of the 336
powers vested with the general assembly pursuant to chapter 337
536 to review, to delay the effective date, or to disapprove 338
and annul a rule are subsequently held unconstitutional, 339
then the grant of rulemaking authority and any rule proposed 340
or adopted after August 28, 2025, shall be invalid and void. 341
20. (1) If the attorney general has reasonable belief 342
that a virtual currency kiosk operator is in violation of 343
this section, the attorney general has the sole authority to 344
bring civil action to provide for any or all of the 345
following: 346
(a) Enjoin further violations by the operator; 347
(b) Enforce compliance with this section; 348
(c) Seek civil penalties in an amount not more than 349
ten thousand dollars for each violation of this section; or 350
(d) Other remedies permitted under law. 351
(2) If the attorney general has reasonable belief that 352
a person is in violation of an injunction issued pursuant to 353
this subsection, the attorney general has the sole authority 354
to bring civil action to provide for civil penalties in an 355
amount not more than one hundred thousand dollars. 356
(3) An individual that has knowledge of a violation of 357
this section may report the violation to the attorney 358
general. 359
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(4) The attorney general shall establish an electronic 360
reporting system for the submission of reports pursuant to 361
this subsection. 362
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