Vending of Digital Assets

2025-2026 Bill 4592: Vending of Digital Assets - South Carolina Legislature Online

South Carolina General Assembly
126th Session, 2025-2026
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H. 4592
STATUS INFORMATION
General Bill
Sponsors: Reps. Guffey, B. Newton and Pope
Document Path: LC-0393SA26.docx
Introduced in the House on January 13, 2026
Currently residing in the House Committee on
Labor, Commerce and Industry
Summary: Vending of Digital Assets
HISTORY OF LEGISLATIVE ACTIONS

Date

Body

Action Description with journal page number

12/16/2025

House

Prefiled

12/16/2025

House

Referred to Committee on
Labor, Commerce and Industry

1/13/2026

House

Introduced and read first time (
House Journal-page 31
)

1/13/2026

House

Referred to Committee on
Labor, Commerce and Industry
(
House Journal-page 31
)

View the latest
legislative information
at the website
VERSIONS OF THIS BILL
12/17/2025

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING ARTICLE
13 TO CHAPTER 3, TITLE 34 SO AS TO PROVIDE VENDING OF DIGITAL ASSET DEFINITIONS
AND TO PROVIDE THAT OWNERS AND OPERATORS OF VIRTUAL CURRENCY KIOSKS MUST HAVE
MONEY TRANSMITTER LICENSES AND MUST PROVIDE CERTAIN DISCLOSURES ON THE SCREENS
OF THE VIRTUAL CURRENCY KIOSKS.

B
e it enacted by the
General Assembly of the State of South Carolina:

S
ECTION 1.
C
hapter 3, Title 34 of the S.C. Code is amended by
adding:

A
rticle 13

V
ending of Digital Assets

S
ection
34-3-910
.
A
s used in this article:

(
1)
"Blockchain technology" means a mathematically secured, chronological,
decentralized, distributed, and digital ledger or database that consists of
records of transactions that cannot be altered retroactively.

(
2)
(
a) "New customer" means a customer
transacting at a virtual currency kiosk in this State who has been a customer
of an own
er or operator of a virtual currency kiosk
for less than seven days.

(
b)
Seven days after a customer first transacts with an owner or operator of a
virtual currency kiosk, the customer is considered an existing customer and is
not subject to the new customer transaction limit described in Section
34-3-920
.

(
3)
"Transaction hash" means a unique identifier made up of a string of characters
that acts as a record and provides proof that a transaction was verified and
added to blockchain technology.

(
4)
(
a) "Virtual currency" means a type of
digital unit that is used as a medium of exchange or a form of digitally stored
value or that is incorporated into payment system technology.

(
b)
"Virtual currency" includes digital units that:

(
i)
have a centralized repository or administrator;

(
ii)
are decentralized and have no centralized repository or administrator; or

(
iii) may be created or obtained by
computing or manufacturing effort.

(
c)
"Virtual currency" does not include digital units that:

(
i)
are used solely within online gaming platforms, with no market or application
outside the gaming platforms;

(
ii)
are used exclusively as part of a consumer affinity or rewards program and can
be applied as payment for purchases with the issuer or other designated
merchants but cannot be converted into or redeemed for fiat currency; or

(
iii) are used as part of a consumer
affinity or rewards program offered through an institution that is insured by
the Federal Deposit Insurance Corporation or the National Credit Union Administration.

(
5)
"Virtual currency address" means an alphanumeric identifier representing a
destination for a virtual currency transfer that is associated with a virtual
currency wallet.

(
6)
"Virtual currency kiosk" means an electronic terminal acting as a mechanical
agent of the owner or operator to enable the owner or operator to facilitate
the exchange of virtual currency for other virtual currency or fiat currency,
including by:

(
a)
connecting to a separate virtual currency exchanger that performs the actual
virtual currency transmission; or

(
b)
drawing upon the virtual currency in the possession of the owner or operator of
the electronic terminal.

(
7)
"Virtual currency wallet" means a software application or other mechanism
providing a means for holding, storing, and transferring virtual currency.

S
ection
34-3-920
.
(
A)
(
1) An owner or operator of a virtual
currency kiosk must obtain a money transmitter license.

(
2)
Before entering into a virtual currency transaction for, on behalf of, or with
a customer, the owner or operator of a virtual currency kiosk shall disclose to
the customer in clear and conspicuous writing in the English language all
material risks associated with virtual currency. The disclosures must be
displayed on the screen of the virtual currency kiosk with the ability for a
customer to acknowledge receipt of the disclosures. The disclosures must
include at least the following statement:

"
WARNING: THIS TECHNOLOGY
CAN BE USED TO DEFRAUD YOU. IF YOU HAVE BEEN DIRECTED TO THIS MACHINE BY
SOMEONE CLAIMING TO BE A GOVERNMENT AGENT, BILL COLLECTOR, LAW ENFORCEMENT
OFFICER, OR ANYONE YOU DO NOT KNOW PERSONALLY, STOP THIS TRANSACTION
IMMEDIATELY AND CONTACT YOUR FINANCIAL ADVISOR AND LOCAL LAW ENFORCEMENT."

(
3)
If the owner or operator of a virtual currency kiosk fails to provide the
statement described in item (2), his license must be revoked.

(
B)
When opening an account for a customer, the owner or operator of a virtual
currency kiosk shall disclose to the customer in clear and conspicuous writing
in the English language all relevant terms and conditions associated with the
products, services, and activities of the owner or operator and virtual
currency generally, including the following:

(
1)
the customer's liability for unauthorized virtual currency transactions;

(
2)
under which circumstances the owner or operator will, absent a court or
government order, disclose information concerning the customer's account to
third parties;

(
3)
the customer's right to receive periodic account statements and valuations from
the owner or operator;

(
4)
the customer's right to receive a receipt, a trade ticket, or other evidence of
a virtual currency transaction; and

(
5)
the customer's right to prior notice of a change in the rules or policies of
the owner or operator.

(
C)
Prior to a transaction in virtual currency for, on behalf of, or with a
customer, the owner or operator of a virtual currency kiosk shall disclose to
the customer in clear and conspicuous writing in the English language the terms
and conditions of the virtual currency transaction, including the following:

(
1)
the amount of the transaction;

(
2)
the fees, expenses, and charges borne by the customer, including applicable
exchange rates;

(
3)
the type and nature of the transaction;

(
4)
a warning that, once completed, the transaction is irreversible, if applicable;

(
5)
the difference in the virtual currency's sale price versus the current market
price; and

(
6)
other disclosures that are customarily given in connection with a virtual
currency transaction.

(
D)
The owner or operator of a virtual currency kiosk shall ensure that each
customer acknowledges receipt of all disclosures required under this section.

(
E)
Upon the completion of a virtual currency transaction, the owner or operator of
a virtual currency kiosk shall provide the customer an electronic receipt
containing the following information:

(
1)
the name of and contact information for the owner or operator, including a
telephone number established by the owner or operator to answer questions and
register complaints;

(
2)
the type, value, date, and precise time of the virtual currency transaction,
the transaction hash, and each virtual currency address;

(
3)
the fee charged;

(
4)
the exchange rate, if applicable;

(
5)
a statement of the liability of the owner or operator for nondelivery or
delayed delivery of the currency for which the customer exchanged virtual
currency; and

(
6)
a statement of the refund policy of the owner or operator.

(
F)
(
1) For a new customer, the maximum
daily transaction limit of a virtual currency kiosk is two thousand dollars for
each customer.

(
2)
For an existing customer, the maximum daily transaction limit of a virtual
currency kiosk is ten thousand five hundred dollars for each customer.

(
G)
(
1) The owner or operator of a virtual
currency kiosk shall, at the expense of the owner or operator, allow a customer
to cancel and receive a full refund for a virtual currency transaction if:

(
a)
the virtual currency transaction was the customer's first virtual currency
transaction;

(
b)
the virtual currency transaction was to a virtual currency wallet or exchange
located outside of the United States; and

(
c)
within sixty days after the virtual currency transaction, the customer contacts
the owner or operator of the virtual currency kiosk and a government or law
enforcement entity regarding the fraudulent nature of the transaction and
submits proof of the fraud, such as a police report or notarized declaration
detailing the fraudulent nature of the virtual currency transaction.

(
2)
If the conditions of item (1) are met, the owner or operator shall issue a full
refund within seventy-two hours after being notified that the virtual currency
transaction was fraudulent.

S
ECTION 2. This act takes effect upon approval
by the Governor.

----XX----

This web page was last updated on January 13, 2026 at 2:42 PM