Vermont S 129: An act relating to the management of fish and wildlife

Bill Text

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VT LEG #381384 v.1
S.129 1
Introduced by Senator Cummings 2
Referred to Committee on 3
Date: 4
Subject: Money services; virtual currency; kiosk operators; regulation 5
Statement of purpose of bill as introduced: This bill proposes to amend 6
Vermont law as it pertains to the regulation of virtual-currency kiosk operators. 7
An act relating to the regulation of virtual-currency kiosk operators 8
It is hereby enacted by the General Assembly of the State of Vermont: 9
Sec. 1. 8 V.S.A. § 2577 is amended to read: 10
§ 2577. VIRTUAL-CURRENCY KIOSK OPERATORS 11
(a) Daily transaction limit. 12
(1) A virtual-currency kiosk operator shall not accept or dispense more 13
than $1,000.00 $2,000.00 of cash in a day in connection with virtual-currency 14
transactions with a single new customer in this State via one or more money 15
transmission kiosks. As used in this section, a “new customer” means an 16
individual who has not completed more than two virtual-currency transactions 17
with a virtual-currency kiosk operator or who has completed a second virtual-18
currency transaction with a virtual-currency kiosk operator but that transaction 19
was completed not more than 72 hours ago. 20

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(2) A virtual-currency kiosk operator shall not accept or dispense more 1
than $5,000.00 of cash in a day in connection with virtual-currency 2
transactions with a single existing customer in this State via one or more 3
money transmission kiosks. As used in this section, an “existing customer” 4
means an individual who has completed at least two virtual-currency 5
transactions with a virtual-currency kiosk operator and the second virtual-6
currency transaction occurred more than 72 hours ago. 7
(b) Fee cap. The aggregate fees and charges, directly or indirectly, charged 8
to a customer related to a single transaction or series of related transactions 9
involving virtual currency effected through a money transmission kiosk in this 10
State, including any difference between the price charged to a customer to buy, 11
sell, exchange, swap, or convert virtual currency and the prevailing market 12
value of such virtual currency at the time of such transaction, shall not exceed 13
the greater of the following: 14
(1) $5.00; or 15
(2) three percent 15 percent of the U.S. dollar equivalent of virtual 16
currency involved in the transaction or transactions. 17
(c) Single transaction. The purchase, sale, exchange, swap, or conversion 18
of virtual currency, or the subsequent transfer of virtual currency, in a series of 19
transactions shall be deemed to be a single transaction for purposes of 20
subsection (b) of this section. 21

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(d) Licensing requirement. A virtual-currency kiosk operator shall comply 1
with the licensing requirements of this subchapter to the extent that the virtual-2
currency kiosk operator engages in virtual-currency business activity. 3
(e) Operator accountability. If a virtual-currency kiosk operator allows or 4
facilitates another person to engage in virtual-currency business activity via a 5
money transmission kiosk in this State that is owned, operated, or managed by 6
the virtual-currency kiosk operator, the virtual-currency kiosk operator shall do 7
all of the following: 8
(1) ensure that the person engaging in virtual-currency business activity 9
is licensed under subchapter 2 of this chapter to engage in virtual-currency 10
business activity and complies with all other applicable provisions of this 11
chapter; 12
(2) ensure that any charges collected from a customer via the money 13
transmission kiosk comply with the limits provided by subsection (b) of this 14
section; and 15
(3) comply with all other applicable provisions of this chapter. 16
(f) Moratorium. To protect the public safety and welfare and safeguard the 17
rights of consumers, virtual-currency kiosks shall not be permitted to operate 18
in Vermont prior to July 1, 2025. This moratorium shall not apply to a virtual-19
currency kiosk that was operational in Vermont on or before June 30, 2024 20
Disclosure of material risks. As part of establishing a relationship with a 21

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customer, and prior to entering into an initial transaction for, on behalf of, or 1
with such customer, each virtual-currency kiosk operator shall disclose in 2
clear, conspicuous, and legible writing in the English language, whether in 3
accessible terms of service or elsewhere, all material risks associated with its 4
products, services, and activities and virtual currency generally, including 5
disclosures substantially similar to the following: 6
(1) virtual currency is not legal tender, is not backed by the government, 7
and accounts and value balances are not subject to Federal Deposit Insurance 8
Corporation or Securities Investor Protection Corporati