summary
Introduced
02/12/2026
02/12/2026
In Committee
02/24/2026
02/24/2026
Crossed Over
Passed
Dead
Introduced Session
Potential new amendment
2026 Regular Session
Bill Summary
Establish Subtitle 13 of KRS Chapter 286 and create new sections thereof to regulate virtual currency kiosks; establish definitions; provide for enforcement by the commissioner of the Department of Financial Institutions; establish license requirements for virtual currency kiosks; require regulatory filings to be submitted to a nationwide licensing system registry; establish initial and renewal application processes and requirements, reporting, surety bond and tangible net worth, and change of control requirements for virtual currency kiosk operators; require the commissioner to promulgate administrative regulations to establish format, document submission, fee, and trade practice requirements for virtual currency kiosk operators; establish record retention requirements for persons required to be licensed as virtual currency kiosk operators; establish trade practice requirements relating to protection of resident assets, virtual currency kiosk transactions, prohibited practices, and fraud and information security compliance procedures; authorize the commissioner to conduct investigations and examinations; provide for the confidentiality of certain documents provided to the commissioner; authorize the commissioner to share, disclose, and report information and take other actions to assist in the commissioner's duties; require the commissioner to submit an annual licensing report to the Legislative Research Commission; establish due process requirements for adverse actions taken by the commissioner against licensees and other persons; establish requirements for the denial, suspension, or revocation of a license; authorize the commissioner to enter cease and desist orders and emergency orders; authorize the commissioner to order civil penalties against persons that violate the subtitle; require the commissioner of the Department of Financial Institutions to promulgate any required emergency and ordinary administrative regulations on or before January 1, 2027; EFFECTIVE, in part, March 31, 2027.
AI Summary
This bill establishes new regulations for virtual currency kiosks in Kentucky, defining terms like "virtual currency" (digital value not legal tender, used for exchange, accounts, or storage) and "virtual currency kiosk" (a terminal for exchanging fiat currency for virtual currency, or vice versa). The Commissioner of the Department of Financial Institutions will oversee these regulations, requiring operators to obtain licenses, submit applications and reports to a nationwide licensing system, and meet requirements for surety bonds and net worth. The bill also mandates record retention, outlines trade practice rules to protect customer assets, and grants the Commissioner authority to conduct investigations, issue cease and desist orders, and impose civil penalties for violations, with specific due process protections for those affected. The Commissioner is required to create necessary administrative regulations by January 1, 2027, and the provisions of the bill will take effect on March 31, 2027.
Committee Categories
Business and Industry
Sponsors (2)
Last Action
Senate Committee Substitute - Senate Committee Substitute 1 (on 02/25/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://apps.legislature.ky.gov/record/26RS/sb189.html |
| Senate Committee Substitute 1 | https://apps.legislature.ky.gov/recorddocuments/bill/26RS/SB189/SCS1.pdf |
| BillText | https://apps.legislature.ky.gov/recorddocuments/bill/26RS/sb189/orig_bill.pdf |
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