Cryptocurrency Amendments

9
7-25-501
7-25-502
7-25-503
7-25-504
7-25-505
0
Cryptocurrency Amendments
2026 GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Brady Brammer
House Sponsor:
LONG TITLE
General Description:
This bill modifies the Money Transmitter Act to regulate virtual currency kiosk operations.
Highlighted Provisions:
This bill:
defines terms;
requires virtual currency kiosk operators to obtain money transmitter licenses;
limits virtual currency transactions in certain situations;
caps the amount that a virtual currency kiosk operator may charge as a transaction fee;
requires a virtual currency kiosk operator to provide certain fraud warnings prior to a
transaction; and
provides enforcement authority to the attorney general.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
7-25-501
, Utah Code Annotated 1953
7-25-502
, Utah Code Annotated 1953
7-25-503
, Utah Code Annotated 1953
7-25-504
, Utah Code Annotated 1953
7-25-505
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section
7-25-501
is enacted to read:
7-25-501
. Definitions.
As used in this part:
(1)
"Blockchain analytics" means the analysis of data from blockchains or publicly
distributed ledgers, including associated transaction information to provide risk-specific
information about virtual currency transactions and virtual currency addresses.
(2)
"Fiat currency" means United States currency or coin that is designated as legal tender
by the United States government.
(3)
"Transaction hash" means a unique identifier made up of a string of characters that act
as a record and provide proof the transaction was verified and added to the blockchain.
(4)
"Virtual currency" means a digital representation of value that is used as a medium of
exchange, unit of account, or store of value and is not money, whether or not
denominated in money.
(5)
"Virtual currency address" means an alphanumeric identifier associated with a virtual
currency wallet identifying the location to which a virtual currency transaction may be
sent.
(6)
"Virtual currency kiosk" means an electronic terminal acting as a mechanical agent of
the virtual currency kiosk operator to enable the virtual currency kiosk operator to
facilitate the exchange of virtual currency for money, bank credit, or other virtual
currency.
(7)
"Virtual currency kiosk operator" means a person that operates a virtual currency kiosk
in this state.
(8)
"Virtual currency kiosk transaction" means a transaction conducted or performed, in
whole or in part, by electronic means via a virtual currency kiosk to purchase virtual
currency with fiat currency or to sell virtual currency for fiat currency.
(9)
"Virtual currency wallet" means a software application or other mechanism providing a
means to hold, store, or transfer virtual currency.
Section 2. Section
7-25-502
is enacted to read:
7-25-502
. Virtual currency kiosk operators -- Licensing requirement.
(1)
Notwithstanding Subsection
7-25-102(9)(b)
, an individual or entity that operates a
virtual currency kiosk in this state shall:
(a)
obtain a license under this chapter;
(b)
register each virtual currency kiosk with the department;
(c)
pay the license fee required by Section
7-1-401
; and
(d)
comply with the requirements of this part.
(2)
For purposes of this chapter, the operation of a virtual currency kiosk constitutes money
transmission, regardless of whether the transactions involve blockchain tokens.
Section 3. Section
7-25-503
is enacted to read:
7-25-503
. Transaction limits -- Fee restrictions.
(1)
A virtual currency kiosk operator may not accept virtual currency kiosk transactions
from a single customer that exceed a cumulative total of $1,000 or the equivalent in
virtual currency per calendar day in this state via one or more virtual currency kiosks
operated by the same virtual currency kiosk operator.
(2)
A virtual currency kiosk operator may not accept virtual currency kiosk transactions that
exceed a cumulative total of $2,000 or the equivalent in virtual currency from a
customer who has completed fewer than five virtual currency kiosk transactions with the
virtual currency kiosk operator.
(3)
A virtual currency kiosk operator may not charge a fee that exceeds 3% of the
transaction amount for any virtual currency kiosk transaction.
Section 4. Section
7-25-504
is enacted to read:
7-25-504
. Disclosures.
(1)
A virtual currency kiosk operator shall disclose in a clear, conspicuous, and easily
readable manner in the chosen language of the customer, all relevant terms and
conditions generally associated with the products, services, and activities of the virtual
currency kiosk operator and virtual currency.
(2)
The virtual currency kiosk operator shall receive acknowledgment of receipt of all
disclosures required under this section via confirmation of consent.
(3)
Each virtual currency kiosk shall include a fraud prevention warning written
prominently and in bold type.
(4)
The fraud prevention warning described in Subsection
(3)
shall state in substantially the
following form: "WARNING: CONSUMER FRAUD OFTEN STARTS WITH
CONTACT FROM A STRANGER WHO IS INITIATING A DISHONEST SCHEME
THAT FREQUENTLY TARGETS VULNERABLE POPULATIONS, INCLUDING
THE ELDERLY. IF YOU BELIEVE YOU ARE BEING SCAMMED, CALL A
LOCAL LAW ENFORCEMENT OFFICER BEFORE ANY TRANSACTION. FUNDS
LOST DUE TO USER ERROR OR FRAUD MAY NOT BE RECOVERABLE.
TRANSACTIONS CONDUCTED ON THIS VIRTUAL CURRENCY KIOSK ARE
IRREVERSIBLE. PROTECT YOURSELF FROM FRAUD. NEVER SEND MONEY
TO SOMEONE YOU DO NOT KNOW."
(5)
After the completion of each transaction, the virtual currency kiosk operator shall
provide an individual with a choice of a physical or digital receipt in the language
chosen by the customer.
(6)
The receipt described in Subsection
(5)
shall contain the virtual currency kiosk
operator's name and contact information, including a telephone number to answer
questions and register complaints, the relevant state and local law enforcement or
government agency for reporting fraud, the type, value, date, and precise time of the
transaction, transaction hash, and each applicable virtual currency address, all fees
charged, the exchange rate of the virtual currency to United States dollars, and a
statement of the virtual currency kiosk operator's refund policy.
Section 5. Section
7-25-505
is enacted to read:
7-25-505
. Customer service -- Enforcement.
(1)
A virtual currency kiosk operator performing business in this state shall provide a
method for live customer service at a minimum Monday through Friday between 8 a.m.
and 10 p.m. Mountain Time.
(2)
The virtual currency kiosk operator shall display the customer service contact
information described in Subsection
(1)
on the virtual currency kiosk or the virtual
currency kiosk screens
.
(3)
The attorney general may enforce this part.
(4)
A violation of this part constitutes a deceptive trade practice under Title 13, Chapter 11,
Utah Consumer Sales Practices Act.
(5)
The commissioner may impose administrative penalties in accordance with Section
7-25-405
for violations of this part.
Section 6.
Effective Date.
This bill takes effect on
May 6, 2026
.
1-21-26 10:28 AM