Bill > HB1268

This bill establishes comprehensive regulations for virtual currency transaction kiosks in Washington state, requiring operators to obtain money transmission licenses and adhere to strict operational and disclosure requirements. The bill mandates that anyone owning, operating, marketing, or facilitating virtual currency transaction kiosks must be licensed as a money transmitter and provides detailed guidelines for their operations. Operators must disclose significant risks associated with virtual currency, including the lack of government backing, potential for total value loss, transaction irreversibility, and vulnerability to fraud. The legislation requires kiosk operators to maintain substantial tangible net worth, implement robust know-your-customer procedures, use blockchain analysis to prevent high-risk transactions, provide live customer support, and employ a full-time chief compliance officer. Additionally, operators must provide detailed transaction receipts to customers and have a comprehensive plan for winding down operations if necessary. The bill defines key terms related to virtual currency and transaction kiosks, and establishes penalties for non-compliance. These regulations aim to protect consumers by increasing transparency, accountability, and risk awareness in virtual currency transactions. The new rules will take effect on January 1, 2026, giving businesses time to prepare for the new regulatory framework.

Business and Industry

https://app.leg.wa.gov/billsummary?BillNumber=1268&Year=2025&Initiative=false