On April 13, Virginia enacted HB 665, establishing a licensing and regulatory framework for virtual currency kiosk operators. The law mandates that any operator of a virtual currency kiosk must obtain a license from the State Corporation Commission (SCC) before engaging in virtual currency kiosk transactions or locating kiosks in the state. Any unlicensed transactions are void. Applicants must disclose financial, background, and experience information and post a surety bond of up to $25,000, and licensees must file annual and quarterly reports covering transaction data, refunds, and suspicious activity. The law sets minimum standards and expressly does not preempt local governments from adopting stricter requirements. The statute outlines clear disclosure requirements at kiosks, including prominent warnings regarding fraud risk and the volatility of virtual currency, while also setting transaction limits of $2,000 for new users and $5,000 for existing users, with a $10,000 monthly limit for all users, and capping fees at 18 percent per transaction. The law also includes an extensive list of prohibited practices.

Operators are required to verify user identity with a government-issued ID, maintain anti-money laundering programs in compliance with the BSA/AML that include the use of blockchain analytics technology and staff training to detect illicit activity, and are prohibited from using the terms “automated teller machine” or “ATM” in connection with a kiosk. The law states that violations may result in civil penalties of up to $1,000 per violation, license suspension or revocation, and referral to the attorney general for enforcement, relief and restitution for affected consumers. The statute provides fraud victims who report within 90 days with the right to a refund of transaction fees, provided they submit a police report, government agency report, or sworn statement within 120 days. The law treats any breach of these requirements as an unlawful practice subject to enforcement by the attorney general or other agencies under the Virginia Consumer Protection Act. The SCC must begin accepting license applications by March 1, 2027, and the law takes effect July 1, 2027.