An Act amending Title 7 (Banks and Banking) of the Pennsylvania Consolidated Statutes, providing for virtual currency kiosks; imposing requirements on the Department of Banking and Securities; establishing the Virtual Currency Kiosk Public Education Campaign Fund; and imposing penalties.

PRINTER'S NO. 3622
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2643
Session of
2026
INTRODUCED BY CIRESI, HANBIDGE, KHAN, WAXMAN, MADDEN, GUZMAN,
SANCHEZ, POWELL, NEILSON, D. WILLIAMS AND MERSKI,
JUNE 16, 2026
REFERRED TO COMMITTEE ON COMMERCE, JUNE 16, 2026
AN ACT
Amending Title 7 (Banks and Banking) of the Pennsylvania
Consolidated Statutes, providing for virtual currency kiosks;
imposing requirements on the Department of Banking and
Securities; establishing the Virtual Currency Kiosk Public
Education Campaign Fund; and imposing penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 7 of the Pennsylvania Consolidated Statutes
is amended by adding a chapter to read:
CHAPTER 63
VIRTUAL CURRENCY KIOSKS
Sec.
6301. Definitions.
6302. License required.
6303. Requirements for license.
6304. General requirements.
6305. Public education campaign.
6306. Authority of department.
6307. Suspension, revocation or refusal.
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6308. Penalties.
§ 6301. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Applicant." A person who applies for a license under this
chapter.
"Branch." A location, other than the principal place of
business, where a virtual currency kiosk is located.
"Commission." The Banking and Securities Commission
established under section 1121-A of the act of May 15, 1933
(P.L.565, No.111), known as the Department of Banking and
Securities Code.
"Department." The Department of Banking and Securities of
the Commonwealth.
"Existing customer." A customer transacting at a virtual
currency kiosk who has been a customer of the licensee for more
than 30 days.
"Fund." The Virtual Currency Kiosk Public Education Campaign
Fund established under section 6305(c) (relating to public
education campaign).
"Licensee." A person licensed under this chapter.
"Money." Currency, legal tender or any other product that is
generally recognized as a medium of exchange.
"New customer." A customer transacting at a virtual currency
kiosk who has been a customer of the licensee for 30 days or
less.
"NMLS." The Nationwide Multistate Licensing System and
Registry developed by the Conference of State Bank Supervisors
and the American Association of Residential Mortgage Regulators
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and owned and operated by the State Regulatory Registry, LLC, or
any successor or affiliated entity, for the licensing and
registration of persons in financial services industries.
"Person." An individual, association, joint venture or
joint-stock company, partnership, limited partnership, limited
partnership association, limited liability company, business
corporation, nonprofit corporation or any other group of
individuals, however organized.
"Principal place of business." The primary office of a
person at which the person's books, records, accounts and
documents are maintained unless otherwise agreed to by the
department.
"Tangible net worth." A person's net worth less intangible
assets as determined by generally accepted accounting
principles.
"Virtual currency." As follows:
(1) The term includes a digital representation of value
that:
(i) Is used as a medium of exchange, unit of account
or store of value.
(ii) Is not money, unless the virtual currency was
adopted or authorized by a domestic or international
government as a medium of exchange, whether denominated
in cash.
(2) The term does not include:
(i) A transaction in which a merchant grants, as
part of an affinity or rewards program, value that cannot
be taken from or exchanged with the merchant for money,
bank credit or virtual currency.
(ii) A digital representation of value issued by or
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on behalf of a publisher and used solely within an online
game, game platform or family of games sold by the same
publisher or offered on the same game platform.
"Virtual currency kiosk." An electronic terminal that
enables the exchange of any combination of United States dollars
or virtual currency, including by:
(1) connecting directly to a separate virtual currency
exchange that performs the actual exchange; or
(2) drawing upon the virtual currency in the possession
of the licensee of the electronic terminal.
§ 6302. License required.
(a) Requirement.--Except as provided under subsection (b), a
person may not operate a virtual currency kiosk without a
license from the department.
(b) Exception.--A license under subsection (a) shall not be
required for banks, bank and trust companies, credit unions,
savings banks and trust companies organized under the laws of
this Commonwealth or similar banking institutions, credit
unions, savings and loan associations, building and loan
associations or any subsidiary of an organization under this
subsection organized under the laws of the United States or of
any other state.
(c) Separate license.--A license under this act shall not
constitute a license under the act of September 2, 1965
(P.L.490, No.249), known as the Money Transmission and Virtual
Currency Transmission Business Licensing Law.
§ 6303. Requirements for license.
(a) Application contents.--An application for a license
under this chapter shall be on a form prescribed and provided by
the department. All applicants and licensees shall use the NMLS
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to obtain and maintain licenses under this chapter. The
application shall include the full name of the following:
(1) The applicant, if an individual.
(2) Each partner, if the applicant is a partnership.
(3) Each trustee and officer, if the applicant is a
trust.
(4) Each officer and director, if the applicant is a
corporation, joint stock association or other unincorporated
association.
(5) Each other business in which the applicant and any
affiliated companies are engaged.
(b) Additional information.--An applicant shall provide the
following:
(1) A statement that the applicant will undertake to
operate the business honestly, fairly, responsibly and in
accordance with this chapter.
(2) Policies and procedures to comply with all Federal,
State and local law, safeguard and secure information and
systems, prevent fraudulent activity and promptly respond to
consumer inquiries.
(3) A financial statement showing a tangible net worth
of at least $500,000, as determined by audited financial
statements prepared in accordance with United States
generally accepted accounting principles, and dated within
120 days of application. If the audited financial statement
is dated beyond 120 days of the date of application, an
interim attested financial statement dated within 90 days of
the date of application must be supplemented.
(c) Investigation.--Upon receipt of an application for a
license, the department may conduct an investigation of the
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applicant or a director, officer, partner, employee, agent or
ultimate equitable owner of 10% or more of the applicant as the
department deems necessary.
(d) Licensing.--All applicants and licensees must establish
and maintain a separate license for the principal place of
business and each branch.
(e) Application fee and bond.--In addition to an
application, an applicant shall provide the department with the
following:
(1) A nonrefundable application fee in the following
amounts:
(i) Five thousand dollars in the case of a principal
place of business.
(ii) One thousand dollars in the case of a branch.
(2) A bond in the sum of $1,000,000 executed by a surety
company authorized to transact business in this Commonwealth.
The bond shall run to the Commonwealth and shall be for the
use of the Commonwealth and of any person who may have a
cause of action against the licensee for violations of this
chapter. The condition of the bond shall be that the licensee
shall comply with and abide by the provisions of this chapter
and the rules and regulations of the department lawfully
promulgated under this chapter and that the licensee shall
pay to the Commonwealth, to the department or to any other
person any money that may become due from the licensee to the
Commonwealth or to the department or to any other person
under the provisions of this chapter. The bond must remain in
effect for at least 31 days following the last virtual
currency kiosk transaction at any location. If the
department, in its discretion, shall determine the bond
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provided for in this section is not adequate, the department
may require an additional bond in an amount up to the total
amount of United States dollar equivalent transactions in
this Commonwealth during the 30 days preceding the
department's requirement subject to the same conditions and
the same right of execution provided for in this section. If
a licensee becomes insolvent, the principal sum of the bond
shall be applied to the payment in full of claims arising out
of the virtual currency exchange transactions in this
Commonwealth and any administrative costs incurred and fines
imposed by the department.
(f) Duty to update.--All applicants and licensees shall be
required to provide the department with notice of the change in
any information contained in an application for a license or for
any renewal of a license within 10 days of an applicant or
licensee becoming aware of the change.
(g) Issuance of license.--
(1) Within 60 days of receipt of a completed
application, the department shall either issue a license or
refuse to issue a license.
(2) The department may refuse to issue a license for
failure to meet qualifications required under this chapter.
(3) The 60-day time limit required under paragraph (1)
may be extended by the department for an additional 30 days
if the department determines that the extension is necessary.
The department shall provide written notification to any
applicant whose application review has been extended and
include the final date by which a decision shall be rendered
regarding the application.
(h) Denial of license for criminal conviction.--The
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department may deny a license if the applicant, or a director,
officer, partner, employee, agent or ultimate equitable owner of
10% or more of the applicant, has been convicted of a crime of
moral turpitude or felony in any jurisdiction, or has been
convicted of a crime which, if committed in this Commonwealth,
would constitute a crime of moral turpitude or felony, at any
time during the seven years prior to the license application.
For the purposes of this subsection, a person shall be deemed to
have been convicted of a crime if the person:
(1) has pleaded guilty or nolo contendere to a criminal
charge before a Federal magistrate or domestic, foreign or
military court; or
(2) has been found guilty by a decision or judgment of a
Federal magistrate or domestic, foreign or military court or
or by a verdict of a jury, irrespective of the pronouncement
of sentence or the suspension thereof, unless the plea of
guilty or nolo contendere or the decision, judgment or
verdict is set aside, vacated, reversed or otherwise
abrogated by lawful judicial process.
(i) Denial of license for other reasons.--The department may
deny a license or otherwise restrict a license if the department
finds that the applicant or a director, officer, partner,
employee, agent or ultimate equitable owner of 10% or more of
the applicant:
(1) has had a license or license application denied, not
renewed, suspended or revoked by the department, another
Commonwealth licensing agency or any other Federal or State
regulatory agency;
(2) is the subject of an order of the department or any
other regulatory agency;
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(3) has violated or failed to comply with any provision
of this chapter or any regulation, statement of policy or
order of the department;
(4) has any outstanding debt to the Commonwealth or any
Commonwealth agency; or
(5) does not possess the financial responsibility,
character, reputation, integrity and general fitness to
command confidence of the public to warrant the belief that
the virtual currency kiosk will be operated lawfully,
honestly, fairly and within the legislative intent of this
chapter and in accordance with the general laws of this
Commonwealth. For purposes of this paragraph, an applicant is
not financially responsible if the applicant has shown a
disregard in the management of the applicant's own financial
condition. The factors that the department may consider in
making a determination regarding an applicant's financial
responsibility shall include:
(i) current outstanding judgments, other than
judgments solely as a result of medical expenses;
(ii) current outstanding tax liens or other
government liens and filings;
(iii) foreclosures or bankruptcies within the past
three years; or
(iv) pattern of seriously delinquent accounts within
the past three years.
(j) Conditional license.--The department may impose
conditions on the issuance of a license. If the department
determines that conditions imposed upon a licensee have not been
fulfilled, the department may take any action authorized under
this chapter against the licensee that the department deems
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necessary.
(k) Appeal of denial.--If the department refuses to issue a
license, the department shall notify the applicant in writing of
the denial, the reason for the denial and the applicant's right
to appeal the denial. An appeal from the department's refusal to
approve an application for a license must be filed by the
applicant within 30 days of notice of refusal.
(l) Licensee fees.--
(1) No later than six months after the effective date of
this subsection, a licensee shall pay the department $1,000
per kiosk that is located in this Commonwealth and operated
by the licensee.
(2) Beginning the year after payment under paragraph
(1), each year for five years:
(i) a licensee shall pay the department $1,000 per
kiosk that is in operation by the licensee and located in
the Commonwealth; and
(ii) $1.00 per transaction for each kiosk that is
located in this Commonwealth and operated by the
licensee.
(3) Fees collected under paragraphs (1) and (2) shall be
deposited in the fund established under section 6305
(relating to public education campaign).
(m) License terms.--A license issued by the department shall
be valid until the expiration date on December 31 annually. A
license issued by the department shall not be assignable or
transferable by operation of law or otherwise.
(n) Renewal.--All applications for renewals of licenses
shall meet all application requirements in this section and must
be filed on NMLS by October 31 annually.
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§ 6304. General requirements.
(a) Tangible net worth and bond.--A licensee must maintain
the minimum tangible net worth and bond prescribed by this
chapter at all times.
(b) Records.--A licensee shall maintain at the principal
place of business, or other place of the licensee if agreed to
by the department, the original or a copy of any books,
accounts, records and documents or electronic or similar access
thereto, of the business conducted under the license as
prescribed by the department to enable the department to
determine whether the business of the licensee is being
conducted in accordance with the provisions of this chapter. All
instruments, documents, accounts, books and records relating to
the virtual currency exchange business shall be kept separate
and apart from the records of any other business conducted by
the licensee. All records shall be preserved and kept available
for investigation or examination by the department for a period
of four years, unless otherwise determined by the department.
The department shall have free access to and authorization to
examine records maintained by the licensee. The costs of the
examination, including travel costs, shall be borne by the
licensee. The department may deny or revoke the authority to
maintain records at another place for good cause in the interest
of protection for Commonwealth consumers, including for the
licensee's failure to provide books, accounts, records or
documents to the department upon request.
(c) Compliance with chapter.--A licensee shall maintain,
implement and enforce policies and procedures to ensure
compliance with all applicable Federal, State and local laws,
rules and regulations. The policies and procedures shall be
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reviewed and updated regularly and approved annually by the
chief executive officer, chair of the board, executive board or
equivalent internal governing body of the licensee. A licensee
shall designate a compliance officer that is a full-time
employee owning less than 20% of the licensee, who coordinates,
monitors and conducts annual compliance review of compliance
with all applicable Federal, State and local laws, rules and
regulations.
(d) Reports to department.--A licensee shall file
periodically, as determined by the department, a report as
prescribed by the department, setting forth information required
by the department concerning the virtual currency kiosk business
conducted by the licensee. Licensees who fail to file the
required report at the date required by the department may be
subject to a penalty of $100 for each day after the due date
until the report is filed.
(e) Permissible fees.--A licensee may charge to an
individual for each transaction an aggregate fee of no more than
the greater of $5 or 3% of the United States dollar equivalent
of the transaction, inclusive of all fees, charges, sale price
markups over market price, exchange spreads or any other fees or
charges however delineated.
(f) Daily transaction limits.--
(1) A new customer shall be limited to the United States
dollar equivalent of $500 in total transactions across all
the licensee's virtual currency kiosks in a 24-hour period.
(2) An existing customer shall be limited to the United
State dollar equivalent of $1,000 in total transactions
across all the licensee's virtual currency kiosks in a 24-
hour period.
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(g) Warnings and specific statements.--Prior to the
initiation of any transaction, a virtual currency kiosk shall
clearly and conspicuously display on the screen all of the
following:
(1) General warnings informing customers that:
(i) The value of virtual currency may be derived
from the continued willingness of market participants to
exchange United States dollars for virtual currency which
may result in the permanent and total loss of the value
of a particular virtual currency if the market for that
virtual currency disappears.
(ii) The volatility and unpredictability of the
price of virtual currency relative to United States
dollars may result in a significant loss over a short
period of time.
(iii) Consumer fraud often starts with contact from
a stranger, and the customer should never provide login
credentials, wallet information, financial details,
personal identification information, security
verification details or remote access to anyone.
(iv) Examples of the most common types of fraudulent
scheme involving virtual currency kiosks.
(2) The following specific statement:
Virtual currency is not backed or insured by the
government and accounts and value balances are not
subject to protections of the Federal Deposit
Insurance Corporation, National Credit Union
Administration, Securities Investor Protection
Corporation or any other government agency.
No legitimate organization will ever ask you to
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deposit cash into a Virtual Currency ATM to resolve
an issue, protect your money or protect loved ones.
You should contact the virtual currency kiosk
customer service helpline or State or local law
enforcement if you have any uncertainty surrounding
this transaction or suspect fraudulent activity.
(h) Customer service.--A licensee shall provide consumers
with access to customer service agents that are available during
all hours in which the virtual currency kiosk is in operation
and available to perform transactions at a toll-free number.
(i) Government identification.--A virtual currency kiosk
must require a customer to scan a government-issued
identification prior to allowing the initiation of a
transaction.
(j) Receipt.--A virtual currency kiosk must provide a
printed receipt in addition to an electronically provided
receipt. The receipt must contain at a minimum:
(1) The name and contact information of the licensee,
including a toll-free telephone number for customer service.
(2) The customer name and identification information
from scanned government-issued identification.
(3) The type, value, date and precise time of the
transaction.
(4) All fees charged, including those listed in
sub section (e), individually labeled.
(5) In the case of a new customer, and dependent upon
how the licensee chooses to comply with subsection (k) , a
statement of either:
(i) "There is a 72-hour delay in execution of the
transaction, and you have the right to cancel the
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transaction within 72 hours"; or
(ii) "You have the right to cancel the transaction
within 72 hours."
(6) A statement of the refund policy in compliance with
subsection (l).
(k) Cancellation.--A licensee shall wait 72 hours before
processing a new customer's transactions or, at the licensee's
expense, shall allow the new customer to cancel and receive a
full refund for the transaction and fees.
(l) Refunds.--If a customer has been fraudulently induced to
engage in a virtual currency kiosk transaction, the licensee
shall issue a full refund to include the transaction amount and
all fees charged, if the customer contacts the licensee within
60 days after the date of the transaction with the customer's
name, address, phone number, transaction receipt number and copy
of the report from State or local law enforcement.
(m) Disclosures on virtual currency kiosk.--Each licensed
virtual currency kiosk must conspicuously display a unique NMLS
identification number, department issued license number, the
licensee's toll-free customer service number, transaction fee
schedule and any additional information as prescribed by the
department.
§ 6305. Public education campaign.
(a) Duties.--No later that one year after the effective date
of this subsection, the department shall conduct a public
education campaign to provide information to the general public
and populations identified by the department as being
particularly susceptible to virtual currency kiosk scams and
frauds about virtual currency kiosks and fraudulent schemes
involving their use. The public education campaign may include
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public service announcements through television, radio, print
media and the department's publicly accessible Internet website.
(b) Contents.--The department shall ensure that the public
education campaign under this section includes the following
information:
(1) What a virtual currency kiosk is.
(2) How a virtual currency kiosk operates.
(3) Identifying and avoiding virtual currency kiosk
scams and frauds.
(4) How to report suspected virtual currency kiosk scams
and frauds.
(5) Providing examples of responsible behavior when
engaging with virtual currency kiosks.
(c) Fund.--The Virtual Currency Kiosk Public Education
Campaign Fund is established as a separate fund in the State
Treasury. The department shall administer the fund. During the
time period in which the public education campaign is active,
money in the fund shall be used to administer the public
education campaign required under this section. After expiration
of the public education campaign, money in the fund shall be
deposited into the General Fund. Interest earned on money in the
fund shall be credited to the fund and money in the fund shall
not lapse at the end of a fiscal year.
(d) Report.--No later than one year prior to the expiration
of the public education campaign, the department shall submit a
report on the public education campaign to the chair and
minority chair of the Banking and Insurance Committee of the
Senate and the chair and minority chair of the Commerce
Committee of the House of Representatives. The report shall
include:
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(1) A summary of the public education campaign.
(2) An assessment of the public education campaign's
performance and impact.
(3) Recommendations on further action to achieve the
public education goals of the campaign.
(e) Expiration.--The public education campaign required
under subsection (a) shall expire five years from the effective
date of this subsection.
§ 6306. Authority of department.
(a) General authority.--The department shall have the
authority to:
(1) Examine any instrument, document, account, book,
record or file of a licensee or any person having a
connection to the licensee or make other investigation as may
be necessary to administer the provisions of this chapter.
The department may remove any instrument, document, account,
book, record or file of a licensee to a location outside of
the licensee's office location. The costs of the examination
shall be borne by the licensee or the entity subject to the
examination.
(2) Conduct administrative hearings on any matter
pertaining to this chapter, issue subpoenas to compel the
attendance of witnesses and the production of instruments,
documents, accounts, books and records at any hearing. The
instruments, documents, accounts, books and records may be
retained by the department until the completion of all
proceedings in connection with which the materials were
produced. A department official may administer oaths and
affirmations to a person whose testimony is required. In the
event a person fails to comply with a subpoena issued by the
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department or to testify on a matter concerning which the
person may be lawfully interrogated, on application by the
department, Commonwealth Court may issue an order requiring
the attendance of the person, the production of instruments,
documents, accounts, books and records and the giving of
testimony.
(3) Request and receive information or records of any
kind, including reports of criminal history record
information from any Federal, State, local or foreign
government entity regarding an applicant, licensee or person
related in any way to the business of the applicant or
licensee, at a cost to be paid by the applicant or licensee.
(4) Issue regulations, statements of policy or orders as
may be necessary for the proper conduct of the virtual
currency kiosk business by licensees, the issuance and
renewal of licenses and the enforcement of this chapter.
(5) Prohibit or permanently remove a person or licensee
responsible for a violation of this chapter from working in
the present capacity or in any other capacity of the person
or licensee related to activities regulated by the
department.
(6) Order a person or licensee to make restitution for
actual damages to consumers caused by a violation of this
chapter.
(7) Issue cease and desist orders that are effective
immediately, subject to a hearing as specified under
subsection (b) within 14 days of the issuance of the order.
(8) Impose other conditions as the department deems
appropriate.
(b) Hearings.--A person aggrieved by a decision of the
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department may appeal the decision to the commission. The appeal
shall be conducted under 2 Pa.C.S. Ch. 5 Subch. A (relating to
practice and procedure of Commonwealth agencies).
(c) Injunctions.--The department may maintain an action for
an injunction or other process against a person to restrain and
prevent the person from engaging in an activity violating this
chapter.
(d) Final orders.--A decision of the commission or an order
of the department that has not been appealed shall be a final
order of the department and shall be enforceable in a court of
competent jurisdiction. The department may publish final
adjudications issued under this section, subject to redaction or
modification to preserve confidentiality. The department shall
regularly report violations of this chapter, enforcement actions
and other relevant information to the NMLS.
(e) Appeals.--A person aggrieved by a decision of the
commission may appeal the decision under 2 Pa.C.S. Ch. 7 Subch.
A (relating to judicial review of Commonwealth agency action).
§ 6307. Suspension, revocation or refusal.
(a) Departmental action.--The department may suspend, revoke
or refuse to renew a license issued under this chapter if any
fact or condition exists or is discovered, which, if it had
existed or had been discovered at the time of filing of the
application for the license, would have warranted the department
in refusing to issue the license or if a licensee or director,
officer, partner, employee or owner of a licensee has:
(1) Made a material misstatement in an application or
any report or submission required by this chapter or
department regulation, statement of policy or order.
(2) Failed to comply with or violated a provision of
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this chapter or an regulation or order promulgated or issued
by the department under this chapter.
(3) Engaged in dishonest, fraudulent or illegal
practices or conduct in a business or unfair or unethical
practices or conduct in connection with the business.
(4) Been convicted of or pleaded guilty or nolo
contendere to a crime of moral turpitude or felony.
(5) Permanently or temporarily been enjoined by a court
of competent jurisdiction from engaging in or continuing
conduct or a practice involving an aspect of the virtual
currency kiosk business.
(6) Become the subject of an order of the department
denying, suspending or revoking a license applied for or
issued under this chapter.
(7) Become the subject of a United States Postal Service
fraud order.
(8) Failed to comply with the requirements of this
chapter to make and keep records prescribed by regulation,
statement of policy or order of the department, to produce
records required by the department or to file financial
reports or other information that the department by
regulation, statement of policy or order may require.
(9) Become the subject of an order of the department
denying, suspending or revoking a license under the
provisions of any other law administered by the department.
(10) Demonstrated negligence or incompetence in
performing an act for which the licensee is required to hold
a license under this chapter.
(11) Become insolvent, meaning that the liabilities of
the applicant or licensee exceed the assets of the applicant
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or licensee or that the applicant or licensee cannot meet the
obligations of the applicant or licensee as they mature or is
in such financial condition that the applicant or licensee
cannot continue in business with safety to the customers of
the applicant or licensee.
(12) Failed to comply with the terms of an agreement
under which the department authorizes a licensee to maintain
records at a place other than the licensee's principal place
of business.
(b) Reinstatement.--The department may reinstate a license
which was previously suspended, revoked or denied renewal if all
of the following exist:
(1) The condition which warranted the original action
has been corrected to the department's satisfaction.
(2) The department has reason to believe that the
condition is not likely to occur again.
(3) The licensee satisfies all other requirements of
this chapter.
§ 6308. Penalties.
(a) Persons operating without licenses.--A person subject to
the provisions of this chapter and not licensed by the
department that violates a provision of this chapter or that
commits an action which would subject a license to suspension,
revocation or nonrenewal under section 6307 (relating to
suspension, revocation or refusal) may be fined by the
department for up to $10,000 for each offense.
(b) Violation by licensee.--A person licensed under this
chapter or director, officer, owner, partner, employee or agent
of a licensee that violates a provision of this chapter or that
commits an action which would subject the licensee to
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suspension, revocation or nonrenewal under section 6307 may be
fined by the department up to $10,000 for each offense.
Section 2. This act shall take effect in 90 days.
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