Bill > SB1705

This bill establishes comprehensive regulations for virtual currency kiosks in Texas, creating a new chapter in the state's Finance Code that mandates strict operational requirements for businesses that operate these machines. Virtual currency kiosks must register with the Texas Department of Banking, obtain prior approval for activation, and submit quarterly reports detailing each kiosk's location and associated virtual currency addresses. Operators are required to implement robust fraud prevention measures, including using blockchain analytics software and maintaining an antifraud policy. The bill imposes several consumer protection provisions, such as mandatory risk disclosures that warn customers about the volatile and unregulated nature of virtual currency, a daily transaction limit of $3,000, identification requirements for customers, and a 72-hour hold on first-time customer transactions. Operators must provide live customer service, display contact information, and offer detailed transaction receipts. The bill also allows law enforcement to request transaction information within 72 hours and gives the banking commissioner authority to issue cease and desist orders or assess administrative penalties up to $5,000 per violation for non-compliance. The regulations aim to protect consumers from fraud, provide transparency, and ensure responsible operation of virtual currency kiosks in the state, with the law set to take effect on September 1, 2025.

Business and Industry, Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1705