On April 1, West Virginia enacted HB 5353, which amends state money transmission laws to explicitly include operating virtual currency kiosks within the definition of money transmission. The law defines a virtual currency kiosk as an “automated electronic machine that allows users to engage in money transmission, including any machine that is capable of accepting or dispensing cash in exchange for virtual currency,” excluding consumer cell phones and similar devices. Operators doing business in West Virginia prior to the law’s effective date must apply for licensure through NMLS within 90 days. The law is effective from passage on March 14.

The law establishes consumer protection requirements, including pre-transaction disclosures warning that losses from fraudulent or accidental transactions may not be recoverable and that virtual currency transactions may be irreversible. It imposes daily transaction limits of $1,000 for new customers (registered 10 days or less) and $10,000 for existing customers. It also provides new customers with the right to a refund for fraud occurring within 10 days of registering as a customer, provided the customer reports the fraud within 30 days. Licensees must obtain government-issued identification, use third-party blockchain analysis to identify high-risk or sanctioned wallets, designate a chief compliance officer, and may place temporary transaction holds of up to 72 hours where elevated risk is identified.