Bill > HB881

This bill updates the Money Transmission Business Licensing Law to include virtual currency transmission, expanding the existing regulatory framework for money transmission services. The bill introduces comprehensive definitions for virtual currency, including what qualifies as virtual currency and what is excluded, such as rewards program credits and in-game digital representations of value. It requires businesses engaged in transmitting virtual currency to obtain a license from the Department of Banking and Securities, similar to existing requirements for traditional money transmission. The legislation establishes new licensing qualifications, including a minimum tangible net worth of $500,000, and requires licensees to maintain a $1 million bond. The bill also addresses exemptions, such as for certain banking institutions and transactions between business entities, and introduces a specific exemption for self-hosted wallets with limited conditions. Additionally, the bill mandates that licensees operate safely, comply with federal and state laws, register agents, and maintain detailed reporting requirements. The new law aims to provide regulatory oversight for virtual currency transmission while protecting consumers and ensuring financial institutions maintain appropriate standards and accountability in this emerging financial technology sector.