SB 887 — Relating to requirements for licensure and regulation of money transmission services

Intr SB 887 2026R3972S 2026R3956H (1) Maintaining possession, custody, or control over virtual currency on behalf of another person, including as a virtual currency control-services vendor;

The commissioner shall approve or deny every application for an original license within 120 days from the date a 9 CS for SB 887 complete application is submitted, unless the commissioner extends the period for good cause.

(d) The licensee at each office it owns and operates in West Virginia shall prominently Intr SB 887 2026R3972S 2026R3956H display, or maintain available for inspection, a copy of the license authorizing the conduct of a currency exchange business if the location offers and provides such services.

(i) A virtual currency kiosk operator shalldoing complybusiness within West Virginia prior to the effective 10 CS for SB 887 date of the amendments to this article andmade submitduring applicationsthe throughregular NMLSsession onof orthe beforeLegislature, November2026, 1,shall 2026,make application through NMLS for licensure beginningwithin January90 1,days 2027.of the effective date of this section.

Applicants must provide a list of delegate locations within NMLS at the time of application and include the appropriate fee.

1(a) (a)(1)A The licensee, in establishing a relationship with a customeruser and before entering into an initial virtual currency transaction on behalf of or with the customer,user, shall disclose in clear, conspicuous, and legible writing all material risks associated with virtual currency generally.

(2) The material risks associated with virtual currency required to be disclosed under subdivision (a)(1) include without limitation:

(A)(1) A disclosure that is acknowledged by the customercustomer, and provided separately from the disclosures provided under subdivisionsubdivisions (a)(2)(B)(2) and subdivision(7) (a)(2)(G),of this subsection, and written prominently and in bold type,type stating the following:

(B)(2) Virtual currency is not backed or insured by the government, and accounts and value balances are not subject to protections of the Federal Deposit Insurance Corporation, National Credit Union Administration, or Securities Investor Protection Corporation;

(C)(3) A virtual currency transaction may be deemed to be made when recorded on a public ledger which may not be the date or time when the customer initiates the virtual currency transaction;

(D)(4) The value of virtual currency may be derived from the continued willingness of market participants to exchange fiat currency for virtual currency which may result in the permanent and total loss of the value of a particular virtual currency if the market for that virtual currency disappears;

(E)(5) The volatility and unpredictability of the price of virtual currency relative to fiat currency may result in a significant loss over a short period of time;

(F)11 CS for SB 887 (6) A bond maintained by the licensee for the benefit of the customers of the licensee may not be sufficient to cover all losses incurred by customers;

and (G)(7) Virtual currency transactions are irreversible and may be used by a person seeking to defraud customers, includingincluding, but not limited to, a person impersonating a customer’s family or Intrfriends, SBthreatening 887jail 2026R3972Stime, 2026R3956Hstating friends;that a customer’s identity has been stolen, insisting that a customer withdraw money from the customer’s bank account and purchase virtual currency, or alleging that a customer’s personal computer has been hacked.

threatening(b) jailA time,licensee, statingwhen thatopening an account for a customer’snew identitycustomer hasand beenbefore stolenentering insistinginto thatan ainitial customervirtual withdrawcurrency moneytransaction fromfor, on behalf of, or with the customer’scustomer, bankshall accountdisclose in clear, conspicuous, and purchaselegible virtualwriting, currencyusing ornot allegingless thatthan a24 customer’spoint personalsans-serif-type computerfont, hasall beenrelevant hacked.terms and conditions associated with the products, services, and activities of the licensee and virtual currency generally.

(b)(1)The Adisclosure licensee, when opening an account for a new customer and before entering into an initial virtual currency transaction for, on behalf of, or with the customer, shall discloseinclude inwithout clear,limitation: conspicuous, and legible writing, using not less than 24 point sans-serif-type font, all relevant terms and conditions associated with the products, services, and activities of the licensee and virtual currency generally.

(2)(1) The disclosurecustomer’s requiredliability underfor subdivisionunauthorized (b)(1)virtual shallcurrency includetransactions; without limitation:

(A)(2) The customer’s liabilityright forto unauthorizedstop payment of a preauthorized virtual currency transactions;transfer and the procedure used to initiate a stop-payment order;

(B)(3) The customer’scircumstances rightunder towhich stopthe paymentlicensee, ofabsent a preauthorizedcourt virtualor currencygovernment transferorder, andwill thedisclose procedureinformation usedconcerning tothe initiatecustomer’s aaccount stop-paymentto order;third parties;

(C)(4) The circumstancesrequirement underthat which the licensee,licensee absentcommunicate ato courtthe orcustomer governmentwhat order,customer will disclose information concerningmay thebe customer’sdisclosed account to third parties;

(D)(5) The requirementcustomer’s thatright theto licenseereceive communicatea toreceipt thefor customera whatvirtual customercurrency informationtransaction mayat bethe disclosedtime toof thirdthe parties;transaction;

(E)(6) TheUpon a change in the rules or policies of the owner or operator, the customer’s right to receiveconsent ato receiptthe forchanged arules virtualor currencypolicies transactionbefore atperforming thea timetransaction ofafter the transaction;change;

(F)and Upon(7) aAny changeother indisclosures thethat rulesare orcustomarily policiesprovided ofin theconnection ownerwith oropening operator, the customer’s right to consent to the changed rules or policies before performing a transactionperson’s afteraccount. the change;

and(c) (G)A Anylicensee, otherbefore disclosureseach thattransaction arein customarilyvirtual providedcurrency infor, connectionon behalf of, or with openinga 12 CS for SB 887 customer, shall disclose to the customer in an easily readable manner that is in clear, conspicuous, and legible writing to advertise, solicit, or negotiate, either orally or in writing, for a person’stransaction account.conducted in person, electronically, or by phone, using not less than 24 point sans-serif-type font, the terms and conditions of the virtual currency transaction.

(c)(1)The A licensee, before each transaction in virtual currency for, on behalf of, or with a customer, shall disclose to the customer in an easily readable manner that is in clear, conspicuous, and legible writing to advertise, solicit, or negotiate, either orally or in writing, for a transaction conducted in person, electronically, or by phone, using not less than 24 point sans-serif-type font, Intr SB 887 2026R3972S 2026R3956H the terms and conditions ofshall theinclude virtualwithout currencylimitation: transaction.

(2)(1) The termsamount andof conditionsthe requiredtransaction; under subdivision (c)(1) shall include without limitation:

(A)(2) TheAny amountfees, ofexpenses, and charges borne by the transaction;customer, including without limitation, applicable exchange rates;

(B)(3) AnyThe fees,type expenses, and chargesnature borneof by the customer,virtual includingcurrency withouttransaction; limitation applicable exchange rates;

(C)(4) TheA typewarning andthat, natureonce ofexecuted, the virtual currency transaction;transaction may not be undone, if applicable;

(D)(5) A warningdaily that, once executed, the virtual currency transaction maylimit notaccording beto undone,subsection if(g) applicable;of this section;

(E)(6) AThe dailydifference in the sale price of the virtual currency transactionversus limitthe accordingcurrent tomarket subsectionprice; (g);

(F)and The(7) differenceAny inother thedisclosures salethat priceare ofcustomarily thegiven virtualin currencyconnection versuswith thea currentvirtual marketcurrency price;transaction.

and (G) Any other disclosures that are customarily given in connection with a virtual currency transaction.

(e)(1)(e) A licensee, upon the completion of a virtual currency transaction, shall provide to the customer a written, paper receiptreceipt. containing:

(A) The namereceipt of,shall andbe contactprovided informationin fora theretainable licensee,form includingand withoutmay limitationbe theprovided licensee’selectronically businessif addressthe and a customer servicerequests telephoneand numberagrees established by the licensee to answerreceive questionsan andelectronic registerreceipt. complaints;

(B) The namereceipt ofshall theinclude customer;without limitation:

(C)(1) The type,name value, date and precisecontact timeinformation offor the virtuallicensee, currencyincluding transaction,without transactionlimitation, hashthe orlicensee’s identificationbusiness number,address and eacha virtualcustomer currencyservice address;telephone number established by the licensee to answer questions and register complaints;

(D)(2) The amountname of the virtualcustomer; currency transaction expressed in United States currency;

(E)13 CS for SB 887 (3) The publictype, virtualvalue, currencydate, addressand precise time of the customer;virtual currency transaction, transaction hash or identification number, and each virtual currency wallet address;

Intr(4) SB 887 2026R3972S 2026R3956H (F) The uniqueamount identifier of the virtual currency kiosktransaction operator;expressed in United States currency;

(G)(5) AThe feepublic charged,virtual includingcurrency withoutwallet limitationaddress aof fee charged directly or indirectly by the licenseecustomer; or a third party involved in the virtual currency transaction;

(H)(6) The exchangeunique rate,identifier ifof applicable;the virtual currency kiosk operator;

(I)(7) AnyA taxfee collectedcharged, including without limitation, a fee charged directly or indirectly by the licensee foror a third party involved in the virtual currency transaction;

(J)(8) AThe statementexchange ofrate, theif liabilityapplicable; of the licensee for non delivery or delayed delivery;

(K)(9) AAny statementtax ofcollected by the refundlicensee policyfor of the licensee;virtual currency transaction;

(L)(10) TheA namestatement and telephone number of the Divisionliability of Financial Institutions and a statement disclosing that the licensee’slicensee customersfor maynon-delivery contact the division with questions or complaintsdelayed aboutdelivery; the licensee’s virtual currency kiosk services;

and(11) (M)A Anystatement additionalof information the commissionerrefund maypolicy require.of the licensee;

(2)(12) The receiptname requiredand undertelephone subdivisionnumber (e)(1)of shallthe beDivision providedof inFinancial Institutions and a retainablestatement formdisclosing andthat maythe belicensee’s providedcustomers electronicallymay ifcontact the customerdivision requestswith andquestions agreesor tocomplaints receiveabout anthe electroniclicensee’s receipt.virtual currency kiosk services;

(f) The total amount of a fee and commission(13) chargedAny byadditional theinformation licensee for a virtual currency transaction shall not exceed $5 or 10 percent of the amountcommissioner ofmay therequire. virtual currency transaction.

(g)(f) ThereThe aretotal establishedamount of a fee and commission charged by the followinglicensee maximumfor dailya virtual currency kiosk transaction limits:shall not exceed 15 percent of the amount of the virtual currency transaction.

(g) The following shall be the maximum daily virtual currency kiosk transaction limits:

and (2) TwoTen thousand five hundred dollars for each existing customer of a virtual currency kiosk.

(h) The licensee shall allow a new customer, upon the request of the new customer, to cancel and receive a full refund for any fraudulent virtual currency transactions that occurred not later than 10 days after the new customer registered as a customer of the licensee if, not later than 30 days after the last virtual currency transaction that occurred during the 1010-day day period, the new customer:

Intr SB 887 2026R3972S 2026R3956H (1) Contacts the licensee and a government or law enforcement agency to inform them of 14 CS for SB 887 the fraudulent nature of the virtual currency transaction;

(7)(A)(7) IdentifyEstablish an enhanced due diligence protections policy and speakprovide byenhanced telephonedue withdiligence anprotections for elder adultadults whowhich isshall ainclude newdocumentation customerof beforerisk-based, thepre- eldertransaction adultprocedures whodesigned isto aidentify newand customermitigate completesfraud, hisscams, or herfinancial firstexploitation, virtualincluding currencyestablishing transactionthe withnature and purpose of the licensee.transaction, evaluating transaction and behavioral risk indicators, and placing a temporary transaction hold of up to 72 hours where elevated risk is identified.

(B)The Duringlicensee’s theapproval communication,of whichthe transaction shall be recordeddependent andupon retainedthe by15 theCS licensee,for SB 887 licensee’s assessment of the licenseeenhanced shall:due diligence protections;

Intr SB 887 2026R3972S 2026R3956H (i) Reconfirm any attestations made by the new customer at a virtual currency kiosk owned or operated by the licensee;

(ii) Discuss the transaction;

and (iii) Discuss types of fraudulent schemes relating to virtual currency.

(C) The licensee’s approval of the transaction shall be dependent upon the licensee’s assessment of the communication;

and (B) NotOwn ownnot more than 20 percent of the licensee that employs the chief compliance officer;

Cooperative agreements.agreements;

inconsistencies with federal law.

(1) Arrange for the exchange of information among government officials concerning the regulation of a currency exchange, transportationtransportation, or transmission business;

(2) Cooperate in and coordinate training programs concerning the regulation of currency exchange, transportationtransportation, or transmission businesses;

(b) The commissioner may request the assistance of the WestState VirginiaPolice state police in enforcing this article.

Intr SB 887 2026R3972S 2026R3956H (d) In the event of any inconsistencies between this article and a federal law that governs pursuant to subsection (c) of this section, the commissioner may provide interpretive guidance that:

and 16 CS for SB 887 (2) Identifies the appropriate means of compliance with federal law.

(b) A licensee may not knowingly authorize a person to act as its delegate who has, within the previous 10 years, a disqualifying criminal conviction of the type set forth in §32A-2-8(c)(2) of this article.article code.

(f) The licensee shall require the authorized delegate to hold in trust for the licensee from Intr SB 887 2026R3972S 2026R3956H the moment of receipt of the proceeds of any business transacted under this article in an amount equal to the amount of proceeds due the licensee less the amount due the authorized delegate.

The funds shall remain the property of the licensee whether or not commingled by the authorized 17 CS for SB 887 delegate with its own funds.

NOTE:18

The purpose of this bill is to bring virtual currency kiosks within the purview of money transmission licensure and create disclosure requirements and daily transaction limitations for new and existing customers.

Intr SB 887 2026R3972S 2026R3956H Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.

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