Senate Bill Report — SB 5280
- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2025-01-23
- Case
- 2025 01 23 A32437 D275412 Bill Report 5280 Sba Bft 25
Summary
A Senate Bill Report on SB 5280, an act relating to protecting consumers of virtual currency kiosks, prepared as of January 21, 2025 for the Senate Committee on Business, Financial Services & Trade, with committee activity on January 23, 2025. It states the bill was requested by the Department of Financial Institutions. The background describes the Uniform Money Services Act and existing disclosure duties of virtual currency licensees. The summary of the bill describes reporting and recordkeeping requirements for kiosk operators, a daily transaction limit of $1,000 per consumer, a cap on transaction fees, and required pre-transaction disclosures and receipt contents. The three-page report lists Appropriation as none and an effective date of ninety days after adjournment.
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Full text
SENATE BILL REPORT
SB 5280
As of January 21, 2025
Title: An act relating to protecting consumers of virtual currency kiosks.
Brief Description: Protecting consumers of virtual currency kiosks.
Sponsors: Senators Kauffman, Christian, Nobles, Stanford and Valdez; by request of
Department of Financial Institutions.
Brief History:
Committee Activity: Business, Financial Services & Trade: 1/23/25.
Brief Summary of Bill
• Provides reporting and recordkeeping requirements for money
transmitter licensees operating virtual currency kiosks.
• Limits virtual currency kiosk daily transaction amounts per consumer to
$1,000 per day.
• Limits virtual currency kiosk transaction fees to the greater of $5 or 5
percent of the United States dollar equivalent of virtual currency
involved in the transaction.
• Requires certain information be disclosed before a transaction through a
virtual currency kiosk and on the receipt.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES & TRADE
Staff: John Kim (786-7453)
Background: The Department of Financial Institutions (DFI) administers the state
Uniform Money Services Act (Act), which regulates money transmitters and currency
exchange businesses. In 2017, the definition of money transmission under the Act was
This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.
Senate Bill Report -1- SB 5280
amended to include the receiving of virtual currency and the transmission of the same.
Virtual currency means a digital representation of value used as a medium of exchange, a
unit of account, or a store of value, but does not have legal tender status as recognized by
the United States government. A person that engages in the business of receiving and
transmitting virtual currency by any means must be licensed with DFI as a money
transmitter.
Money transmitter licensees must submit certain reports of condition to the Nationwide
Multistate Licensing System (NMLS), a multistate system of record for nondepository
financial services licensing.
Virtual currency licensees must disclose to consumers:
• a schedule of all fees and charges the licensee may assess on a transaction, how the
fees and charges will be calculated if not set in advance and disclosed, and the timing
of the fees and charges;
• whether the product or service provided is insured or guaranteed by an agency of the
United States, such as the Federal Deposit Insurance Corporation or the Securities
Investor Protection Corporation or by private insurance against theft or loss, including
cybertheft or theft by other means;
• a notice that the transfer of virtual currency or digital units is irrevocable, and any
exception to the irrevocability of transfer; and
• a notice describing the licensee's liability for unauthorized, mistaken, or accidental
transfers and, describing the user's responsibility for providing notice of such mistake
to the licensee and of general error-resolution rights applicable to any transaction.
Summary of Bill: A virtual currency kiosk is defined as an electronic terminal that
facilitates the exchange of virtual currency for money or other virtual currency. It does not
include consumer mobile cellular phones and other similar devices.
Reporting and Recordkeeping Requirements. A licensee operating a virtual currency kiosk
must report all of its branch locations and authorized delegates to the NMLS at least 30 days
before commencing business at the branch or authorized delegate location to provide money
services in the state. Accurate records must be maintained in NMLS as prescribed by rule.
Daily Transaction Limit. A licensee operating a virtual currency kiosk may not accept,
dispense, or transmit more than $1,000 per day from or to a consumer through a virtual
currency kiosk.
Transaction Fee Limit. The aggregate fees and charges, directly or indirectly, charged to a
customer related to a single transaction or series of transaction involving virtual currency
effected through a virtual currency kiosk may not exceed the greater of $5 or 5 percent of
the United States dollar equivalent of virtual currency involved in the transaction or
transactions. This amount includes any difference between the price charged to a customer
to buy, sell, exchange, swap, or convert virtual currency and the prevailing market value of
Senate Bill Report -2- SB 5280
such virtual currency at the time of transaction.
Disclosure Requirements. In addition to disclosures required under current law, before a
consumer initiates a transaction on a virtual currency kiosk, the kiosk must clearly,
conspicuously, and separately disclose:
• the name, unique identifier, address, and telephone number of the licensee;
• the days, times, and means by which a consumer can contact the licensee for
customer assistance;
• a statement alerting consumers on fraud; and
• a statement that fraudulent transactions may result in the loss of the consumer's
money or virtual currency with no recourse.
Upon completion of any transaction through a virtual currency kiosk, the licensee must
provide a receipt showing the:
• name of the customer;
• type, date, time, and precise amount of the transaction;
• amount of any fee or other charge;
• exchange rate;
• full unique transaction hash or identification number;
• public virtual currency address of the customer;
• amount of any difference between the price paid by the customer for any virtual
currency and the prevailing market price of such virtual currency, if applicable; and
• name, unique identifier, and contact information of the licensee.
The amount or value of the virtual currency must include the equivalent United States'
dollar value.
Appropriation: None.
Fiscal Note: Available.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Senate Bill Report -3- SB 5280
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- 2025-01-23_a32437_d275412_bill-report-5280-sba-bft-25.pdf
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- d89e37f2a93055dded3cbfdf58070584387a9f9c48bfa3f62da0a1224c75b701
- Original
- app.leg.wa.gov