Pennsylvania SB 1015: An Act providing for regulation and reporting requirements for qualifying virtual currency kiosk operators and for money transmitter license; and imposing duties on the Department of Banking and Securities.

Bill Text

PRINTER'S NO. 1172
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1015
Session of
2025
INTRODUCED BY PENNYCUICK, VOGEL AND BROWN, SEPTEMBER 17, 2025
REFERRED TO COMMUNICATIONS AND TECHNOLOGY, SEPTEMBER 17, 2025
AN ACT
Providing for regulation and reporting requirements for
qualifying virtual currency kiosk operators and for money
transmitter license; and imposing duties on the Department of
Banking and Securities.
TABLE OF CONTENTS
Section 1. Short title.
Section 2. Definitions.
Section 3. Confidentiality.
Section 4. Disclosures of material risks.
Section 5. Disclosure of general terms and conditions.
Section 6. Warning disclosure.
Section 7. Receipts.
Section 8. Blockchain analytics.
Section 9. Customer service.
Section 10. Anti-fraud policy.
Section 11. Financial Exploitation of Elder and Vulnerable
Adults Policy.
Section 12. Compliance policies.
Section 13. Compliance officer.
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Section 14. Consumer protection officer.
Section 15. Reporting virtual currency kiosk locations.
Section 16. Money transmitter license.
Section 17. Armored car carrier.
Section 18. Effective date.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Virtual
Currency Kiosk Regulation Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Armored car carrier." A corporation, limited liability
company, limited liability partnership or foreign entity
qualified to do business in this Commonwealth that is used by a
virtual currency kiosk operator to transport fiat currency to or
from a virtual currency kiosk.
"Blockchain." A distributed digital ledger or database which
is chronological, consensus-based, decentralized and
mathematically verified in nature.
"Blockchain analytics." A software service that uses data
from various virtual currencies and their applicable blockchains
to provide a risk rating specific to digital wallet addresses
from users of virtual currency kiosks.
"Department." The Department of Banking and Securities of
the Commonwealth.
"Digital wallet." Hardware or software that enables
individuals to store and use virtual currency.
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"Digital wallet address." An alphanumeric identifier
representing a destination on a blockchain for a virtual
currency transfer that is associated with a digital wallet.
"Fiat currency." A medium of exchange that is authorized or
adopted by the Federal Government as part of its currency and is
not backed by a commodity.
"NMLS." The Nationwide Multistate Licensing System and
Registry developed by the Conference of State Bank Supervisors
and the American Association of Residential Mortgage Regulators
and owned and operated by the State Regulatory Registry, LLC, or
any successor or affiliated entity, for the licensing and
registration of persons in financial services industries.
"Virtual currency." As follows:
(1) The term includes a digital representation of value
that:
(i) Is used as a medium of exchange, unit of account
or store of value.
(ii) Is not money, unless the virtual currency was
adopted or authorized by a domestic or international
government as a medium of exchange, whether denominated
in cash.
(2) The term does not include:
(i) A transaction in which a merchant grants, as
part of an affinity or rewards program, value that cannot
be taken from or exchanged with the merchant for money,
bank credit or virtual currency.
(ii) A digital representation of value issued by or
on behalf of a publisher and used solely within an online
game, game platform or family of games sold by the same
publisher or offered on the same game platform.
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"Virtual currency kiosk." An electronic terminal of the
virtual currency kiosk operator that enables the owner or
operator to facilitate the exchange of fiat currency for virtual
currency or virtual currency for fiat currency or other virtual
currency, including, but not limited to:
(1) connecting directly to a separate virtual currency
exchange that performs the actual virtual currency
transmission; or
(2) drawing upon the virtual currency in the possession
of the owner or operator of the electronic terminal.
"Virtual currency kiosk operator." A corporation, limited
liability company, limited liability partnership or foreign
entity qualified to do business in this Commonwealth which
operates a virtual currency kiosk within this Commonwealth.
Section 3. Confidentiality.
(a) Restricted use.--Except as otherwise provided in this
section, all information or reports obtained by the department
from a virtual currency kiosk operator, and all information
contained in or related t