HB 977 — Virtual Currency Kiosk Businesses

Summary

Virtual Currency Kiosk Businesses; Requires OFR to supervise virtual currency kiosk businesses; provides legislative intent; prohibits virtual currency kiosk business from operating without registering; requires certain entities to be licensed as money services businesses; provides that registration is not transferable or assignable; specifies requirements for certain disclosures & attestations; requires registrant to transact business under its legal name; requires registrant to hold new customers' assets in initial transactions in segregated wallets for specified period before initiating transactions; authorizes customers to request refunds during such holding periods; authorizes such customers' assets to be sold at market value & returned to customers; requires certain customers to be queried for specified information; provides criminal penalties.

Bill Text

• Introduced H 977 Filed Current pdf

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill establishes regulations and requirements for virtual currency kiosk businesses, including registration and compliance provisions.

• 560.103

  (4) "Blockchain analytics" refers to the process of examining, monitoring, and gathering insights from the data and transaction patterns on a blockchain network. The primary aim of blockchain analytics is to understand and monitor the network's health, track money flows, and identify potential security threats, including illicit activity, to extract actionable insights. (38) "Virtual currency kiosk" means an electronic terminal that acts as a mechanical agent of the owner-operator, enabling the owner-operator to facilitate the exchange of virtual currency for fiat currency or other virtual currency for a customer. (39) "Virtual currency kiosk business" or "registrant" means a corporation, limited liability company, limited liability partnership, or foreign entity qualified to do business in this state which operates a virtual currency kiosk and which is not a money transmitter as defined in this section. (40) "Virtual currency kiosk transaction" means the process in which a customer uses a virtual currency kiosk to exchange virtual currency for fiat currency or other virtual currency. A transaction begins at the point at which the customer is able to initiate a transaction, after the customer is given the option to select the type of transaction or account, and does not include any of the screens that display the required terms and conditions, disclaimers, or attestations. (41) "Wallet" means hardware or software that enables customers to store and use virtual currency.

  This change adds specific definitions related to blockchain and virtual currency operations.

• 560.105

  Supervise all money services businesses and their authorized vendors and registrants. → Supervise all money services businesses, their authorized vendors, and registrants; supervise virtual currency kiosk businesses.

  This change explicitly includes supervision of virtual currency kiosk businesses by the Office of Financial Regulation.

• Part V of chapter 560, Florida Statutes, consisting of ss. 560.501-560.507, Florida Statutes, is created and entitled "Virtual Currency Kiosk Businesses."

  This creates a new part in the Florida Statutes specifically governing virtual currency kiosk businesses.

• 560.501 Legislative intent.—The Legislature intends to reduce unlawful and fraudulent activities by requiring virtual currency kiosk businesses to register with the state and by requiring such businesses and money transmitter licensees to regularly and consistently disclose to all customers of virtual currency kiosks certain specified risks relating to virtual currency kiosk transactions.

  This establishes the legislative intent behind regulating virtual currency kiosks.

• 560.502 Registration required; exemptions; penalties.—(1) A virtual currency kiosk business in this state may not operate without first registering, or renewing its registration, in accordance with s. 560.503 and being issued a certificate of registration by the office.

  This mandates that virtual currency kiosk businesses must be registered to operate.

• 560.503 Registration applications.—(1) To apply to be registered as a virtual currency kiosk business under this part, the applicant must submit all of the following to the office: (a) A completed registration application on forms prescribed by rule of the commission which must include the following information: ...

  This specifies the requirements for registration applications for virtual currency kiosk businesses.

• 560.504 Disclosure and attestations requirements for virtual currency kiosks; rules; enforcement; penalties.

  This section outlines disclosure and attestation requirements for virtual currency kiosks.

• 560.505 Legal name requirement.—A registrant shall transact business under its legal name, with certain exceptions.

  This requires virtual currency kiosk businesses to operate under their legal names.

• 560.506 Customer asset handling requirements.—(1) A registrant shall hold new customers' assets in initial transactions in segregated wallets for a specified period before initiating transactions; authorizing customers to request refunds during such holding periods.

  This mandates how registrants must handle customer assets during initial transactions.

• 560.507 Criminal penalties and enforcement provisions for violations relating to virtual currency kiosk businesses.

  This establishes criminal penalties for violations of the provisions related to virtual currency kiosks.

Action History

1. March 08, 2024

   Died in Insurance & Banking Subcommittee

2. January 09, 2024

   1st Reading (Original Filed Version)

3. January 05, 2024

   Now in Insurance & Banking Subcommittee

4. January 05, 2024

   Referred to Commerce Committee

5. January 05, 2024

   Referred to State Administration & Technology Appropriations Subcommittee

6. January 05, 2024

   Referred to Insurance & Banking Subcommittee

7. December 20, 2023

   Filed

Sponsors

• Kevin M. Steele · Primary
• Dan Daley · Primary

Subjects