Florida Senate - 2025

SB 292

By Senator Burton

A bill to be entitled

An act relating to virtual currency kiosk businesses; amending s. 560.103, F.S.; defining terms and revising the definition of the term "control person"; amending s. 560.105, F.S.; requiring the Office of Financial Regulation of the Financial Services Commission to supervise virtual currency kiosk businesses; requiring that rules adopted to regulate virtual currency kiosk businesses be responsive to certain changes; creating part V of ch. 560, F.S., entitled "Virtual Currency Kiosk Businesses"; creating s. 560.501, F.S.; providing legislative intent; creating s. 560.502, F.S.; prohibiting a virtual currency kiosk business from operating without registering or renewing its registration in accordance with certain provisions; requiring the office to make certain notifications; specifying that certain money transmitters are exempt from registration but are subject to certain provisions; requiring that certain entities that perform or prevent certain actions be licensed as money services businesses; providing criminal penalties for certain entities that operate or solicit business as a virtual currency kiosk business under certain circumstances; providing criminal penalties for persons who register or attempt to register as a virtual currency kiosk business by certain means; providing that a virtual currency kiosk business registration is not transferable or assignable; creating s. 560.503, F.S.; specifying application requirements for registering as a virtual currency kiosk business; requiring certain virtual currency kiosk businesses to submit an application within a specified timeframe; requiring a registrant to report certain changes in information within a specified timeframe; requiring a registrant to renew its registration within a specified timeframe; specifying requirements for a registrant to renew its registration; requiring that the registration of a virtual currency kiosk business be made inactive if such business does not renew its registration by a certain date; specifying requirements for a virtual currency kiosk business to renew an inactive registration; providing that a registration becomes null and void under certain circumstances; providing requirements if a registration becomes null and void; requiring the office to deny certain applications under certain circumstances; providing that certain false statements made by a virtual currency kiosk business render its registration void; authorizing the commission to adopt rules; creating s. 560.504, F.S.; specifying requirements for specified disclosures and attestations displayed by a virtual currency kiosk; authorizing the commission to adopt rules; creating s. 560.505, F.S.; requiring an owner-operator to transact business under the legal name by which it is registered; providing exceptions; requiring an owner operator to maintain certain policies, processes, and procedures; requiring an owner-operator to use blockchain analytics; creating s. 560.506, F.S.; providing criminal penalties; authorizing a court to invalidate the registration of a registrant under certain circumstances; providing effective dates.

Be It Enacted by the Legislature of the State of Florida:

Section 1. Present subsections (4) through (28) and (29) through (36) of section 560.103, Florida Statutes, are redesignated as subsections (5) through (29) and (31) through (38), respectively, new subsections (4) and (30) and subsections (39) through (42) are added to that section, and present subsection (10) of that section is amended, to read:

560.103 Definitions. --As used in this chapter, the term:

(4) "Blockchain analytics" means the process of examining, monitoring, and gathering insights from the data and transaction patterns on a blockchain network. The primary aims of blockchain analytics are to understand and monitor the network's health, track transaction flows, and identify potential security threats, including illicit activity, in order to extract actionable insights.

(11) ~~(10)~~ "Control person" means, with respect to a money services business or virtual currency kiosk business, any of the following:

(a) A person who holds the title of president, treasurer, chief executive officer, chief financial officer, chief operations officer, chief legal officer, or compliance officer for a money services business or virtual currency kiosk business.

(b) A person who holds any of the officer, general partner, manager, or managing member positions named in the money services business's or virtual currency kiosk business's governing documents. As used in this paragraph, the term "governing documents" includes bylaws, articles of incorporation or organization, partnership agreements, shareholder agreements, and management or operating agreements.

(d) A shareholder in whose name shares are registered in the records of a corporation for profit, whether incorporated under the laws of this state or organized under the laws of any other jurisdiction and existing in that legal form, who owns 25 percent or more of a class of the company's equity securities.

(e) A general partner or a limited partner, as those terms are defined in s. 620.1102, who has a 25 percent or more transferable interest, as defined in s. 620.1102, of a limited partnership, limited liability limited partnership, foreign limited partnership, or foreign limited liability limited partnership, as those terms are defined in s. 620.1102.

(f) A member, who is a person that owns a membership interest in a limited liability company or a foreign limited liability company, as those terms are defined in s. 605.0102(36) and (26), respectively, that holds a 25 percent or more membership interest in such company. As used in this subsection, the term "membership interest" means a member's right to receive distributions or other rights, such as voting rights or management rights, under the articles of organization.

(g) A natural person who indirectly owns 25 percent or more of the shares or stock interest, transferable interest as defined in s. 620.1102, or membership interest as defined in paragraph (f), of any legal entities referred to in paragraphs (d)-(f).

(30) "Owner-operator" means a registrant or a licensed money services business.

(39) "Virtual currency kiosk" means an electronic terminal that acts as a mechanical agent of the owner-operator, enabling the owner-operator to facilitate the exchange of virtual currency for fiat currency or other virtual currency for a customer.

(40) "Virtual currency kiosk business" or "registrant" means a corporation, limited liability company, limited liability partnership, or foreign entity qualified to do business in this state which operates a virtual currency kiosk and which is not a money transmitter as defined in this section.

(41) "Virtual currency kiosk transaction" means the process in which a customer uses a virtual currency kiosk to exchange virtual currency for fiat currency or other virtual currency. A transaction begins at the point at which the customer is able to initiate a transaction after the customer is given the option to select the type of transaction or account, and does not include any of the screens that display the required terms and conditions, disclaimers, or attestations.

(42) "Wallet" means hardware or software that enables customers to store and use virtual currency.

Section 2. Paragraph (a) of subsection (1) and paragraph (b) of subsection (2) of section 560.105, Florida Statutes, are amended to read:

560.105 Supervisory powers; rulemaking. --

(1) The office shall:

(a) Supervise all money services businesses and their authorized vendors and virtual currency kiosk businesses.

(2) The commission may adopt rules pursuant to ss. 120.536(1) and 120.54 to administer this chapter.

(b) Rules adopted to regulate money services businesses, including deferred presentment providers and virtual currency kiosk businesses, must be responsive to changes in economic conditions, technology, and industry practices.

Section 3. Part V of chapter 560, Florida Statutes, consisting of ss. 560.501-560.506, Florida Statutes, is created and entitled "Virtual Currency Kiosk Businesses."

Section 4. Section 560.501, Florida Statutes, is created to read:

560.501 Legislative intent. --The Legislature intends to reduce unlawful and fraudulent activities by requiring virtual currency kiosk businesses to register with the state and by requiring such businesses and money transmitter licensees to regularly and consistently disclose to all customers of virtual currency kiosks certain specified risks relating to virtual currency kiosk transactions.

Section 5. Effective March 1, 2026, section 560.502, Florida Statutes, is created to read:

560.502 Registration required; exemptions; penalties. --

(1) A virtual currency kiosk business in this state may not operate without first registering, or renewing its registration, in accordance with s. 560.503. The office shall give written notice, in person or by mail, to each applicant that the agency has granted or denied the application for registration.

(2) A money transmitter licensed as a money services business pursuant to s. 560.141 is exempt from registration as a virtual currency kiosk business but is subject to ss. 560.504, 560.505, and 560.506.

(3) An entity, in the course of its business, may not act as an intermediary with the ability to unilaterally execute or indefinitely prevent a virtual currency kiosk transaction, or otherwise meet the definition of a money transmitter as defined in s. 560.103, without being licensed as a money services business pursuant to part II of this chapter.

(4) Unless licensed as a money services business pursuant to part II of this chapter, an entity that operates or solicits business as a virtual currency kiosk business without first being registered with the office or without maintaining its registration commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(5) A person who registers or attempts to register as a virtual currency kiosk business by means of fraud, misrepresentation, or concealment commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(6) A virtual currency kiosk business registration issued under this part is not transferable or assignable.

Section 6. Section 560.503, Florida Statutes, is created to read:

560.503 Registration applications. --

(1) To apply to be registered as a virtual currency kiosk business under this part, the applicant must submit all of the following to the office:

(a) A completed registration application on forms prescribed by rule of the commission. The application must include the following information:

1. The legal name, including any fictitious or trade names used by the applicant in the conduct of its business, and the physical and mailing addresses of the applicant.

2. The date of the applicant's formation and the state in which the applicant was formed, if applicable.

3. The name, social security number, alien identification or taxpayer identification number, business and residence addresses, and employment history for the past 5 years for each control person as defined in 560.103.

4. A description of the organizational structure of the applicant, including the identity of any parent or subsidiary of the applicant, and the disclosure of whether any parent or subsidiary is publicly traded.

5. The name of the registered agent in this state for service of process.

6. The physical address of the location of each virtual currency kiosk through which the applicant proposes to conduct or is conducting business in this state.

7. An attestation that the applicant has developed clearly documented policies, processes, and procedures regarding the use of blockchain analytics to prevent transfers to wallet addresses linked to known criminal activity, including the manner in which such blockchain analytics activity will integrate into its compliance controls, and that the applicant will maintain and comply with such blockchain analytics policies, processes, and procedures.

8. Any other information as required by this chapter or commission rule.

(b) Any information needed to resolve any deficiencies found in the application within a time period prescribed by rule.

(2) A virtual currency kiosk business operating in this state on or before January 1, 2026, must submit a registration application to the office within 30 days after that date.

(3) A registrant shall report, on a form prescribed by rule of the commission, any change in the information contained in an initial application form or an amendment thereto within 30 days after the change is effective.

(4) A registrant must renew its registration annually on or before December 31 of the year preceding the expiration date of the registration. To renew such registration, the registrant must submit a renewal application that provides:

(a) The information required in paragraph (1)(a) if there are changes in the application information, or an affidavit signed by the registrant that the information remains the same as the prior year.

(b) Upon request by the office, evidence that the registrant has been operating in compliance with ss. 560.504 and 560.505. Such evidence may be prescribed by rule by the commission and may include, but need not be limited to, all of the following:

1. Current disclosures presented to customers during the transaction process.

2. Current use of blockchain analytics to prevent transfers to wallet addresses linked to known criminal activity.

(5) The registration of a virtual currency kiosk business that does not renew its registration by December 31 of the year of expiration must be made inactive for 60 days. A virtual currency kiosk business may not conduct business while its registration is inactive.

(6) To renew an inactive registration, a virtual currency kiosk business must, within 60 days after the registration becomes inactive, submit all of the following:

(a) The information required in paragraph (1)(a) if there are changes in the application information or an affidavit signed by the registrant that the information remains the same as the prior year.

(b) Evidence that the registrant was operating in compliance with ss. 560.504 and 560.505. Such evidence may be prescribed by rule by the commission and may include, but need not be limited to, all of the following:

1. Current disclosures presented to customers during the transaction process.

2. Current use of blockchain analytics to prevent transfers to wallet addresses linked to known criminal activity.

Any renewal registration made pursuant to this subsection becomes effective upon the date the office approves the application for registration. The office shall approve the renewal registration within a timeframe prescribed by rule.

(7) Failure to submit an application to renew a virtual currency kiosk business's registration within 60 days after the registration becomes inactive shall result in the registration becoming null and void. If the registration is null and void, a new application to register the virtual currency kiosk business pursuant to subsection (1) must be submitted to the office and a certification of registration must be issued by the office before the virtual currency kiosk business may conduct business in this state.

(8) If a control person of a registrant or prospective registrant has engaged in any unlawful business practice, or been convicted or found guilty of, or pled guilty or nolo contendere to, regardless of adjudication, a crime involving dishonest dealing, fraud, acts of moral turpitude, or other acts that reflect an inability to engage lawfully in the business of a registered virtual currency kiosk business, the office must deny the prospective registrant's initial registration application or the registrant's renewal application.

(9) The office shall deny the application of a virtual currency kiosk business that submits a renewal application and fails to provide evidence of compliance upon request pursuant to paragraph (4)(b) or as required in paragraph (6)(b).

(10) Any false statement made by a virtual currency kiosk business with respect to the name of the business or its business address or location in any application for registration under this section renders the registration void. A void registration may not be construed as creating a defense to any prosecution for violation of this chapter.

(11) The commission may adopt rules to administer this section.

Section 7. Section 560.504, Florida Statutes, is created to read:

560.504 Disclosures. --

(1) Disclosures or attestations required by this section and displayed by a virtual currency kiosk must meet all of the following requirements:

(a) Be full and complete.

(b) Contain no material misrepresentations.

(d) Be displayed in at least 14-point type.

(2) Before authorizing a customer to initiate a virtual currency kiosk transaction, the owner-operator shall ensure that the virtual currency kiosk displays the disclosures in this section on two separate screens.

(a) The first disclosure must be in substantially the following form:

WARNING: CONSUMER FRAUD OFTEN STARTS WITH CONTACT FROM

A STRANGER WHO IS INITIATING A DISHONEST SCHEME.

I UNDERSTAND THAT DISHONEST SCHEMES MAY APPEAR IN MANY

FORMS, INCLUDING, BUT NOT LIMITED TO:

1. Claims of a frozen bank account or credit card.

2. Fraudulent bank transactions.

3. Claims of identity theft or job offerings in exchange for payments.

4. Requests for payments to government agencies or companies.

5. Requests for disaster relief donations or loans.

6. Offers to purchase tickets for lotteries, sweepstakes, or drawings for vehicles.

7. Prompts to click on desktop pop-ups, such as virus warnings or communication from alleged familiar merchants.

8. Communication from someone impersonating a representative of your bank or a law enforcement officer.

9. Requests from persons who are impersonating relatives or friends in need or promoting investment or romance scams.

PROTECT YOURSELF FROM FRAUD. NEVER SEND MONEY TO

SOMEONE YOU DON'T KNOW.

(b) The second disclosure must be in substantially the following form:

WARNING: FUNDS LOST DUE TO USER ERROR OR FRAUD MAY NOT

BE RECOVERABLE. TRANSACTIONS CONDUCTED ON THIS VIRTUAL

CURRENCY KIOSK ARE IRREVERSIBLE. I UNDERSTAND THESE

RISKS AND WISH TO CONTINUE CONDUCTING MY VIRTUAL

CURRENCY KIOSK TRANSACTION.

PROTECT YOURSELF FROM FRAUD. NEVER SEND MONEY TO

SOMEONE YOU DON'T KNOW.

(3)(a) After the disclosures provided in subsection (2) are acknowledged by the customer, the virtual currency kiosk business shall ensure that the virtual currency kiosk displays on a pop-up window the following question to the customer: "ARE YOU USING THIS KIOSK TO SEND VIRTUAL CURRENCY TO A WALLET OWNED BY SOMEONE ELSE?"

(b) The virtual currency kiosk business shall require the customer to respond to the question in paragraph (a) with a "no" response before the customer can proceed to the attestation required in subsection (4).

(c) The virtual currency kiosk business shall ensure that the virtual currency kiosk terminates a customer's virtual currency kiosk transaction if the customer provides a "yes" response to the question in paragraph (a).

(4) After the disclosure provided in subsection (2) and, with respect to virtual currency kiosk businesses, an answer of "no" to the question provided in paragraph (3)(a), the owner operator must ensure that the virtual currency kiosk displays, on a screen by itself, a toll-free number for the customer to contact regarding the risk of engaging in virtual currency transactions and the following attestation in substantially the following form:

I ATTEST THAT I HAVE BEEN GIVEN A TOLL-FREE NUMBER AND

THAT I HAVE HAD AN OPPORTUNITY TO CALL THE NUMBER TO

SPEAK WITH SOMEONE REGARDING THE RISKS OF ENGAGING IN

VIRTUAL CURRENCY KIOSK TRANSACTIONS. I FURTHER ATTEST

THAT I UNDERSTAND THAT I MAY BE SOLELY RESPONSIBLE FOR

LOSS OF FUNDS DUE TO USER ERROR OR FRAUD.

(a) If a customer makes the attestation in this subsection, the virtual currency kiosk may allow the customer to proceed with the virtual currency kiosk transaction.

(b) If the customer does not make the attestation in this subsection, the owner-operator must ensure that the virtual currency kiosk terminates the customer's virtual currency kiosk transaction.

(5) The commission may adopt rules to administer this section and to ensure that virtual currency kiosk disclosures are responsive to consumer fraud and emerging technology.

Section 8. Section 560.505, Florida Statutes, is created to read:

560.505 Conduct of business. --

(1) An owner-operator may transact business under this part only under the legal name by which such business is registered. The use of a fictitious name is allowed if the fictitious name has been registered with the Department of State and disclosed to the office as part of an initial registration or license application, or subsequent amendment to the application, before its use.

(2) An owner-operator must maintain clearly documented policies, processes, and procedures with regard to the manner in which the blockchain analytics activity integrates into their compliance controls. An owner-operator must use blockchain analytics to prevent transfers to wallet addresses linked to known criminal activity.

Section 9. Section 560.506, Florida Statutes, is created to read:

560.506 Penalties. --

(1) An owner-operator of a virtual currency kiosk which violates s. 560.504 commits a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

(2) Each of the following violations constitutes a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083:

(a) Operating a virtual currency kiosk under any name other than that designated in the registration, unless written notification is given to the office.

(b) Assigning or attempting to assign a virtual currency kiosk business registration issued under this part.

(3) In addition to the criminal penalties provided in this section, a court may invalidate the registration of any registrant under this part who has been found guilty of conduct punishable under subsection (1) or subsection (2).

Section 10. Except as otherwise expressly provided in this act, this act shall take effect January 1, 2026.

Florida S 292

Virtual Currency Kiosk Businesses

2025 FL S 292

Florida S 292

Virtual Currency Kiosk Businesses

2025 FL S 292