SB 173

01-21 10:28  S.B. 173
1Cryptocurrency Amendments
                                       2026 GENERAL SESSION
                                            STATE OF UTAH
                                   Chief Sponsor: Brady Brammer
                                              House Sponsor:
2
3   LONG TITLE
4   General Description:
5This bill modifies the Money Transmitter Act to regulate virtual currency kiosk operations.
6   Highlighted Provisions:
7This bill:
8▸ defines terms;
9▸ requires virtual currency kiosk operators to obtain money transmitter licenses;
10▸ limits virtual currency transactions in certain situations;
11▸ caps the amount that a virtual currency kiosk operator may charge as a transaction fee;
12▸ requires a virtual currency kiosk operator to provide certain fraud warnings prior to a
13   transaction; and
14▸ provides enforcement authority to the attorney general.
15   Money Appropriated in this Bill:
16None
17   Other Special Clauses:
18None
19   Utah Code Sections Affected:
20   ENACTS:
217-25-501, Utah Code Annotated 1953
227-25-502, Utah Code Annotated 1953
237-25-503, Utah Code Annotated 1953
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247-25-504, Utah Code Annotated 1953
257-25-505, Utah Code Annotated 1953
26
27   Be it enacted by the Legislature of the state of Utah:
28Section 1. Section 7-25-501 is enacted to read:
297-25-501 . Definitions.
30      As used in this part:
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31  (1) "Blockchain analytics" means the analysis of data from blockchains or publicly
32      distributed ledgers, including associated transaction information to provide risk-specific
33      information about virtual currency transactions and virtual currency addresses.
34  (2) "Fiat currency" means United States currency or coin that is designated as legal tender
35      by the United States government.
36  (3) "Transaction hash" means a unique identifier made up of a string of characters that act
37      as a record and provide proof the transaction was verified and added to the blockchain.
38  (4) "Virtual currency" means a digital representation of value that is used as a medium of
39      exchange, unit of account, or store of value and is not money, whether or not
40      denominated in money.
41  (5) "Virtual currency address" means an alphanumeric identifier associated with a virtual
42      currency wallet identifying the location to which a virtual currency transaction may be
43      sent.
44  (6) "Virtual currency kiosk" means an electronic terminal acting as a mechanical agent of
45      the virtual currency kiosk operator to enable the virtual currency kiosk operator to
46      facilitate the exchange of virtual currency for money, bank credit, or other virtual
47      currency.
48  (7) "Virtual currency kiosk operator" means a person that operates a virtual currency kiosk
49      in this state.
50  (8) "Virtual currency kiosk transaction" means a transaction conducted or performed, in
51      whole or in part, by electronic means via a virtual currency kiosk to purchase virtual
52      currency with fiat currency or to sell virtual currency for fiat currency.
53  (9) "Virtual currency wallet" means a software application or other mechanism providing a
54      means to hold, store, or transfer virtual currency.
55Section 2. Section 7-25-502 is enacted to read:
567-25-502 . Virtual currency kiosk operators -- Licensing requirement.
57  (1) Notwithstanding Subsection 7-25-102(9)(b), an individual or entity that operates a
58      virtual currency kiosk in this state shall:
59      (a) obtain a license under this chapter;
60      (b) register each virtual currency kiosk with the department;
61      (c) pay the license fee required by Section 7-1-401; and
62      (d) comply with the requirements of this part.
63  (2) For purposes of this chapter, the operation of a virtual currency kiosk constitutes money
64      transmission, regardless of whether the transactions involve blockchain tokens.
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65Section 3. Section 7-25-503 is enacted to read:
667-25-503 . Transaction limits -- Fee restrictions.
67   (1) A virtual currency kiosk operator may not accept virtual currency kiosk transactions
68from a single customer that exceed a cumulative total of $1,000 or the equivalent in
69virtual currency per calendar day in this state via one or more virtual currency kiosks
70operated by the same virtual currency kiosk operator.
71   (2) A virtual currency kiosk operator may not accept virtual currency kiosk transactions that
72exceed a cumulative total of $2,000 or the equivalent in virtual currency from a
73customer who has completed fewer than five virtual currency kiosk transactions with the
74virtual currency kiosk operator.
75   (3) A virtual currency kiosk operator may not charge a fee that exceeds 3% of the
76transaction amount for any virtual currency kiosk transaction.
77Section 4. Section 7-25-504 is enacted to read:
787-25-504 . Disclosures.
79   (1) A virtual currency kiosk operator shall disclose in a clear, conspicuous, and easily
80readable manner in the chosen language of the customer, all relevant terms and
81conditions generally associated with the products, services, and activities of the virtual
82currency kiosk operator and virtual currency.
83   (2) The virtual currency kiosk operator shall receive acknowledgment of receipt of all
84disclosures required under this section via confirmation of consent.
85   (3) Each virtual currency kiosk shall include a fraud prevention warning written
86prominently and in bold type.
87   (4) The fraud prevention warning described in Subsection (3) shall state in substantially the
88following form: "WARNING: CONSUMER FRAUD OFTEN STARTS WITH
89CONTACT FROM A STRANGER WHO IS INITIATING A DISHONEST SCHEME
90THAT FREQUENTLY TARGETS VULNERABLE POPULATIONS, INCLUDING
91THE ELDERLY. IF YOU BELIEVE YOU ARE BEING SCAMMED, CALL A
92LOCAL LAW ENFORCEMENT OFFICER BEFORE ANY TRANSACTION. FUNDS
93LOST DUE TO USER ERROR OR FRAUD MAY NOT BE RECOVERABLE.
94TRANSACTIONS CONDUCTED ON THIS VIRTUAL CURRENCY KIOSK ARE
95IRREVERSIBLE. PROTECT YOURSELF FROM FRAUD. NEVER SEND MONEY
96TO SOMEONE YOU DO NOT KNOW."
97   (5) After the completion of each transaction, the virtual currency kiosk operator shall
98provide an individual with a choice of a physical or digital receipt in the language
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99      chosen by the customer.
100  (6) The receipt described in Subsection (5) shall contain the virtual currency kiosk
101      operator's name and contact information, including a telephone number to answer
102      questions and register complaints, the relevant state and local law enforcement or
103      government agency for reporting fraud, the type, value, date, and precise time of the
104      transaction, transaction hash, and each applicable virtual currency address, all fees
105      charged, the exchange rate of the virtual currency to United States dollars, and a
106      statement of the virtual currency kiosk operator's refund policy.
107Section 5. Section 7-25-505 is enacted to read:
1087-25-505 . Customer service -- Enforcement.
109  (1) A virtual currency kiosk operator performing business in this state shall provide a
110      method for live customer service at a minimum Monday through Friday between 8 a.m.
111      and 10 p.m. Mountain Time.
112  (2) The virtual currency kiosk operator shall display the customer service contact
113      information described in Subsection (1) on the virtual currency kiosk or the virtual
114      currency kiosk screens.
115  (3) The attorney general may enforce this part.
116  (4) A violation of this part constitutes a deceptive trade practice under Title 13, Chapter 11,
117      Utah Consumer Sales Practices Act.
118  (5) The commissioner may impose administrative penalties in accordance with Section
119      7-25-405 for violations of this part.
120Section 6. Effective Date.
121  This bill takes effect on May 6, 2026.
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