Engrossed Senate Bill 5280, Protecting Consumers of Virtual Currency Kiosks (Washington, 2025)

Summary

Engrossed Senate Bill 5280, State of Washington, 69th Legislature, 2025 Regular Session, by Senators Kauffman, Christian, Nobles, Stanford, and Valdez, by request of Department of Financial Institutions, read first time 01/15/25 and referred to Committee on Business, Financial Services & Trade. The act relates to protecting consumers of virtual currency kiosks and amends RCW 19.230.150. A licensee operating a virtual currency kiosk shall not accept, dispense, or transmit more than $2,000 or the equivalent value in virtual currency per day from or to a customer. Aggregate fees and charges may not exceed the greater of five dollars or 15 percent of the United States' dollar equivalent of the virtual currency involved. Kiosks must disclose fraud warnings, and licensees must give each customer a receipt.

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“Engrossed Senate Bill 5280, Protecting Consumers of Virtual Currency Kiosks (Washington, 2025).” Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2025-01-29-a32584-bill-5280-e-71c77255a1/, SHA-256 7fb325a0d77856fe0329929eea659e8187fb44770ce379de4ad7bd71d73b065c.

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                           ENGROSSED SENATE BILL 5280


     State of Washington        69th Legislature        2025 Regular Session

     By Senators Kauffman, Christian, Nobles, Stanford, and Valdez; by
     request of Department of Financial Institutions

     Read first time 01/15/25.      Referred   to   Committee   on   Business,
     Financial Services & Trade.




1        AN ACT Relating to protecting consumers of virtual currency
2    kiosks; amending RCW 19.230.150; adding a new section to chapter
3    19.230 RCW; and creating a new section.


 4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 5       NEW SECTION.    Sec. 1.    The legislature finds that there is
 6   burgeoning financial fraud involving victims who are induced to
 7   purchase virtual currency and then are persuaded to open themselves
 8   to the theft of this purchase by sophisticated fraud rings.
 9       The legislature further finds that the federal trade commission
10   has reported that in 2023 it received more reports of imposter scams
11   per million in population from Washington than from any other state,
12   that scammers are increasingly convincing people to pay with virtual
13   currency, and that virtual currency payments are difficult to trace
14   and typically not reversible.
15       The legislature intends for this act, which protects consumers of
16   virtual currency kiosks, to constitute an exercise of the state's
17   police power to protect and promote the health, safety, and welfare
18   of the residents of the state in general. Accordingly, while this act
19   is intended to protect the public generally, it is not intended to
20   create a duty owed to any individual or entity on the part of the
21   state.
                                      p. 1                            ESB 5280
 1       NEW SECTION. Sec. 2. A new section is added to chapter 19.230
 2   RCW to read as follows:
 3       (1) A licensee that operates a virtual currency kiosk shall
 4   report all licensee branch locations and all authorized delegates to
 5   the nationwide licensing system at least 30 days prior to commencing
 6   business at the branch or authorized delegate location to provide
 7   money services in Washington. Accurate records must be maintained
 8   within the licensing system as prescribed in rule.
 9       (2) A licensee operating a virtual currency kiosk shall not
10   accept, dispense, or transmit more than $2,000 or the equivalent
11   value in virtual currency per day from or to a customer through a
12   virtual currency kiosk.
13       (3) The aggregate fees and charges, directly or indirectly,
14   charged to a customer related to a single transaction or series of
15   related transactions involving virtual currency effected through a
16   virtual currency kiosk, including any difference between the price
17   charged to a customer to buy, sell, exchange, swap, or convert
18   virtual currency and the prevailing market value of such virtual
19   currency at the time of such transaction, may not exceed the greater
20   of the following:
21       (a) Five dollars; or
22       (b) 15 percent of the United States' dollar equivalent of virtual
23   currency involved in the transaction or transactions.
24       (4) Before a consumer initiates a transaction on a virtual
25   currency   kiosk,   each   virtual  currency   kiosk    must  clearly,
26   conspicuously, and separately disclose to the consumer:
27       (a) The name, unique identifier, address, and telephone number of
28   the licensee;
29       (b) The days, times, and means by which a consumer can contact
30   the licensee for customer assistance;
31       (c) A statement alerting consumers on fraud; and
32       (d) A statement that fraudulent transactions may result in the
33   loss of the consumer's money or virtual currency with no recourse.
34       (5)(a) Upon the completion of any transaction through its virtual
35   currency kiosk, each licensee engaged in virtual currency activity
36   shall provide a receipt to each customer with the following:
37       (i) The name of the customer;
38       (ii) The type, date, time, and precise amount of the transaction;
39       (iii) The amount of any fee or other charge;
40       (iv) The exchange rate;
                                     p. 2                         ESB 5280
 1       (v) The full unique transaction hash or identification number;
 2       (vi) The public virtual currency address of the customer;
 3       (vii) The amount of any difference between the price paid by the
 4   customer for any virtual currency and the prevailing market price of
 5   such virtual currency, if applicable; and
 6       (viii) The name, unique identifier, and contact information of
 7   the licensee.
 8       (b) The amount or value of any virtual currency must also include
 9   the equivalent United States' dollar value.
10       (6) In addition to the requirements of this section, each
11   licensee operating a virtual currency kiosk is subject to the
12   disclosure requirements set forth in RCW 19.230.370.
13       (7) For the purposes of this section, "virtual currency kiosk"
14   means an electronic terminal that facilitates the exchange of virtual
15   currency for money or other virtual currency. "Virtual currency
16   kiosk" does not include consumer mobile cellular phones and other
17   similar devices.


18       Sec. 3.   RCW 19.230.150 and 2017 c 30 s 12 are each amended to
19   read as follows:
20       (1) A licensee shall file with the director within thirty days
21   any material changes in information provided in a licensee's
22   application as prescribed in rule by the director. If this
23   information indicates that the licensee is no longer in compliance
24   with this chapter, the director may take any action authorized under
25   this chapter to ensure that the licensee operates in compliance with
26   this chapter.
27       (2) ((A)) Unless required otherwise in this chapter, a licensee
28   shall report all licensee branch locations and all authorized
29   delegates to the nationwide licensing system within ((thirty)) 30
30   days of the contractual agreement with the licensee to provide money
31   services in Washington. Accurate records must be maintained within
32   the licensing system as prescribed in rule.
33       (3) A licensee shall file a report with the director within one
34   business day after the licensee has reason to know of the occurrence
35   of any of the following events:
36       (a) The filing of a petition by or against the licensee, or any
37   authorized delegate of the licensee, under the United States
38   Bankruptcy Code (11 U.S.C. Sec. 101-110) for bankruptcy or
39   reorganization;
                                     p. 3                         ESB 5280
 1       (b) The filing of a petition by or against the licensee, or any
 2   authorized   delegate  of   the   licensee,  for    receivership,  the
 3   commencement of any other judicial or administrative proceeding for
 4   its dissolution or reorganization, or the making of a general
 5   assignment for the benefit of its creditors;
 6       (c) The commencement of a proceeding to revoke, suspend,
 7   restrict, or condition its license, or otherwise discipline or
 8   sanction the licensee, in a state or country in which the licensee
 9   engages in business or is licensed;
10       (d) The cancellation or other impairment of the licensee's bond;
11       (e) A charge or conviction of the licensee or of an executive
12   officer, responsible individual, board director of the licensee, or
13   person in control of the licensee, for a felony; or
14       (f) A charge or conviction of an authorized delegate for a
15   felony.

                                  --- END ---




                                     p. 4                         ESB 5280

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