Shown verbatim: the complete text as captured from the official page posted by the Alaska State Legislature, fetched 2026-09-21. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
00Enrolled SB 249 01Relating to virtual currency kiosks; relating to transactions involving virtual currency; relating 02 to unfair trade or deceptive acts or practices; and providing for an effective date. 03 _______________ 04 * Section 1. AS 06.55 is amended by adding new sections to read: 05 Article 1A. Virtual Currency Kiosks. 06 Sec. 06.55.120. Virtual currency kiosk operator licensing and reporting. 07 (a) A virtual currency kiosk operator may not engage in a virtual currency kiosk 08 transaction or hold itself out as being able to engage in virtual currency kiosk 09 transactions with or on behalf of another person unless the virtual currency kiosk 10 operator holds a money transmission license. 11 (b) A virtual currency kiosk operator may not locate a virtual currency kiosk 12 in the state unless the virtual currency kiosk operator registers with and obtains the 13 prior approval of the department. 01Sec. 06.55.125. Reporting. (a) Within 45 days after the end of each calendar 02 quarter, a virtual currency kiosk operator shall submit a quarterly report to the 03 department for each location in the state at which the person operates a virtual 04 currency kiosk. The report must include the following: 05 (1) the legal name of the virtual currency kiosk operator; 06 (2) any fictitious or trade name used by the virtual currency kiosk 07 operator; 08 (3) the virtual currency kiosk operator's physical address; 09 (4) the date that operation of a virtual currency kiosk began at the 10 location; 11 (5) if applicable, the date the virtual currency kiosk operator ceased 12 operating a virtual currency kiosk at the location; 13 (6) virtual currency addresses used by the virtual currency kiosk 14 operator to service users at every location in the state; and 15 (7) the number of transactions declined because of suspicion of illicit 16 activity. 17 (b) On or before March 31 of each year, a virtual currency kiosk operator shall 18 submit an annual report to the department relating to the virtual currency kiosk 19 operator's business conducted in the state during the previous calendar year. The 20 report shall be on a form prescribed by the department and must include 21 (1) the gross revenue attributable to virtual currency transactions 22 conducted through virtual currency kiosks in the state; 23 (2) copies of each complaint filed by a user against the virtual currency 24 kiosk operator with the Better Business Bureau or a state or federal agency other than 25 the department and a description of the resolution, if any, of each complaint; 26 (3) the total number and value of virtual currency transactions the 27 virtual currency kiosk operator conducted through virtual currency kiosks in the state; 28 (4) the total number of refunds requested by users, including the 29 number of requests granted and the number denied by the virtual currency kiosk 30 operator; 31 (5) the total dollar amount of refunds the virtual currency kiosk 01 operator provided to users; 02 (6) contact details for the virtual currency kiosk operator's compliance 03 officer; 04 (7) the total number of virtual currency kiosk locations; and 05 (8) the total number and dollar amount of suspicious transaction 06 reports the virtual currency kiosk operator was required to file under 31 U.S.C. 5311 - 07 5336. 08 (c) Upon request, a virtual currency kiosk operator shall make available to the 09 department information on any transaction processed by the virtual currency kiosk or 10 any user of the virtual currency kiosk, including information related to transactions 11 that were attempted but denied. 12 (d) Data collected by the department under this section is confidential and is 13 not a public record for purposes of AS 40.25.110 - 40.25.140 but may be released in 14 composite form. The department shall prepare and make available to the public an 15 annual report summarizing the data reported to the department under this section. 16 Sec. 06.55.130. Disclosures. (a) A virtual currency kiosk operator shall 17 disclose in a clear, conspicuous, and easily readable manner in the chosen language of 18 the user all relevant terms and conditions generally associated with the products, 19 services, and activities of the virtual currency kiosk operator and virtual currency, 20 including transaction charges collected and exchange rates used by the virtual 21 currency kiosk operator. 22 (b) When a user engages with a virtual currency kiosk, the virtual currency 23 kiosk operator shall obtain acknowledgment of receipt of all disclosures required 24 under this section. 25 (c) The disclosures required under this section must address the following: 26 (1) a warning, written prominently and in bold type stating 27 WARNING: this technology can be used to defraud you. If 28 someone asked you to deposit money in this machine or is on the 29 telephone with you and claims to be a friend or family member, 30 government agent, computer software representative, bill collector, law 31 enforcement officer, or anyone you do not know personally 01 IMMEDIATELY STOP THIS TRANSACTION and contact your local 02 law enforcement and the kiosk operator. This may be a scam. NEVER 03 SEND MONEY to someone you don't know; 04 (2) a warning of the material risks associated with virtual currency, 05 including a warning that virtual currency is not issued or backed by the United States 06 government; is not legal tender in the United States; is not subject to protections by the 07 Federal Deposit Insurance Corporation, National Credit Union Administration, or 08 Securities Investor Protection Corporation; and that its value relative to the United 09 States dollar may fluctuate significantly; 10 (3) the name, address, and telephone number of the owner of the kiosk 11 and the days, time, and means by which a user can contact the owner for assistance; 12 (4) the address and telephone number of the Alaska state troopers, 13 local law enforcement, and the department, along with a message that a user may 14 report fraud to any of those entities, shall be displayed on or at the location of a virtual 15 currency kiosk or on the first screen of a kiosk; and 16 (5) other disclosures that the department requires by regulation. 17 (d) The disclosures required under this section do not affect the obligation of a 18 virtual currency kiosk operator to issue a refund under AS 06.55.160 to a user who is a 19 victim of fraud. 20 (e) After the completion of each transaction, the virtual currency kiosk 21 operator shall provide users with paper and electronic receipts. In addition to the 22 information required under AS 06.55.830, the receipt must include the following 23 information: 24 (1) the virtual currency kiosk operator's name and toll-free customer 25 service telephone number; 26 (2) relevant contact information to report fraud to the Alaska state 27 troopers, local law enforcement, and the department; 28 (3) the type, value, date, and time of the transaction; 29 (4) each applicable virtual currency address and transaction hash, if 30 applicable; 31 (5) all charges incurred in the transaction; 01 (6) the exchange rate used between the virtual currency and United 02 States dollar; 03 (7) a statement of the virtual currency kiosk operator's refund policy; 04 (8) any additional information the department requires by regulation. 05 Sec. 06.55.135. Fraud and anti-money laundering policy. A virtual currency 06 kiosk operator shall take reasonable steps to detect and prevent fraud and money 07 laundering, including establishing and maintaining a written anti-fraud policy and 08 abiding by 31 U.S.C. 5311 - 5336 (Bank Secrecy Act). The anti-fraud and money 09 laundering policy must, at a minimum, 10 (1) identify and assess fraud-related and money laundering-related risk 11 areas; 12 (2) establish procedures and controls to protect against identified risks 13 of fraud and money laundering; 14 (3) allocate responsibility for monitoring risks of fraud and money 15 laundering; and 16 (4) require periodic evaluation and revision of the anti-fraud and 17 money laundering procedures, controls, and monitoring mechanisms. 18 Sec. 06.55.140. Blockchain analytics. A virtual currency kiosk operator shall 19 use blockchain analytics and tracing software to assist in the prevention of sending 20 virtual currency to a virtual currency wallet known or likely to be affiliated with 21 fraudulent activity at the time of a transaction and to detect transaction patterns 22 indicative of fraud or other illicit activities. Virtual currency kiosk operators shall 23 block transactions to virtual currency wallets associated with overseas exchanges that 24 are inaccessible to users in the United States. A virtual currency kiosk operator shall 25 make available to the department, upon request, evidence of their current use of 26 blockchain analytics. 27 Sec. 06.55.145. Posted warnings. A virtual currency kiosk operator shall post 28 a conspicuous written warning in plain view of the virtual currency kiosk providing 29 notice to users that criminals may direct victims of fraud or scams to send money by 30 way of virtual currency kiosks. This warning must include the virtual currency kiosk 31 operator's toll-free customer service telephone number. 01Sec. 06.55.150. User identification. (a) A virtual currency kiosk operator or 02 their authorized delegate shall verify the identity of a user before accepting payment 03 from the user for a virtual currency transaction. A virtual currency kiosk operator or 04 their authorized delegate shall obtain a copy of a government-issued identification 05 card that identifies the user and shall collect additional user information, including the 06 user's name, date of birth, telephone number, address, and electronic mail address, 07 before accepting a payment from the user at a virtual currency kiosk. 08 (b) A virtual currency kiosk operator may not allow a user to engage in a 09 transaction at a virtual currency kiosk under any name, account, or identity other than 10 the user's own true name and identity. 11 (c) A virtual currency kiosk operator is strictly liable for a violation of this 12 section. 13 Sec. 06.55.155. Training. On an annual basis, a virtual currency kiosk 14 operator shall provide the store or location where the kiosk is located with staff 15 training materials approved by the department. The training materials must outline 16 how criminals may exploit virtual currency kiosks in illicit activity, including red flag 17 indicators that a virtual currency kiosk user may be the victim of fraud or scams as 18 well as signs of financial abuse and exploitation. The virtual currency kiosk operator 19 may not prohibit or prevent staff at the location of the virtual currency kiosk from 20 educating virtual currency kiosk users on fraud and scams. 21 Sec. 06.55.160. Refunds. For cases related to fraud, a virtual currency kiosk 22 operator shall issue a refund to a user in the full amount of all transactions paid by the 23 user at the time of the transaction, including transaction charges, regardless of any 24 acknowledgment the user may have made before finalizing the transactions. This 25 refund must be paid in the originating currency. A user is entitled to a full refund if the 26 user 27 (1) engaged in a transaction involving the virtual currency kiosk that 28 was affected by fraud; 29 (2) informed the virtual currency kiosk operator of the fraudulent 30 nature of the transaction or transactions at issue within 90 days after the last 31 transaction or within 90 days after the user became aware of the fraud, whichever is 01 later; and 02 (3) within 120 days after contacting the virtual currency kiosk 03 operator, submitted to the virtual currency kiosk operator a police report, report by the 04 department, or a sworn statement detailing the fraudulent nature of the transaction. 05 Sec. 06.55.165. Communication. For all communication between the virtual 06 currency kiosk operator and the user, the virtual currency kiosk operator shall provide 07 written notices in both English and Spanish and communicate with the user in their 08 preferred language through staff, oral interpretation services, or auxiliary aids and 09 services. 10 Sec. 06.55.170. Transaction limit. (a) A virtual currency kiosk operator may 11 not accept transactions totaling more than $1,000, or the equivalent in virtual currency, 12 from a user in one calendar day. 13 (b) A virtual currency kiosk operator may not accept transactions totaling 14 more than $10,000, or the equivalent in virtual currency, from a user in a 30-day 15 period. 16 (c) The limits in this section apply to all products offered by a virtual currency 17 kiosk operator. The use of alternative products, including online purchasing or over- 18 the-counter platforms, may not be employed to circumvent or exceed the limits in this 19 section. 20 Sec. 06.55.172. Transaction fees. A virtual currency kiosk operator may not 21 collect fees from a user for a transaction that total more than 10 percent of the 22 transaction value in United States dollars or the equivalent in virtual currency. 23 Sec. 06.55.175. Customer service. A virtual currency kiosk operator shall 24 provide live customer service during operating hours, including the hours between 25 8:00 a.m. and 10:00 p.m. Alaska time. A customer service toll-free number must be 26 displayed on the virtual currency kiosk or the virtual currency kiosk screen. 27 Sec. 06.55.180. Law enforcement access to investigative information. A 28 virtual currency kiosk operator shall provide a dedicated communications line for 29 government agencies to contact the virtual currency kiosk operator. The dedicated line 30 must be an electronic mail address or telephone number based in the United States. A 31 law enforcement agency or a regulatory agency, including the department, may use the 01dedicated line to communicate with the virtual currency kiosk operator in the event of 02 a fraud report from a user. The dedicated line must be regularly monitored. Upon 03 request from a law enforcement agency or regulatory agency, a virtual currency kiosk 04 operator must provide the agency with trace findings and grant the agency assistance 05 with blockchain analytics to assist in an investigative matter related to potential fraud. 06 Sec. 06.55.185. Penalties. (a) A virtual currency kiosk operator that violates 07 AS 06.55.120 - 06.55.195 commits an unfair trade or deceptive act or practice in 08 violation of AS 45.50.471. 09 (b) A virtual currency kiosk operator operating in this state without a money 10 transmission license or that otherwise violates AS 06.55.120 - 06.55.195 is subject to 11 administrative action, including civil penalties, that may, notwithstanding 12 AS 06.55.605, include the seizure of any virtual currency kiosk and the forfeiture of 13 all fees received from customers in the state during the period of unlicensed activity or 14 noncompliance. 15 Sec. 06.55.190. Municipal regulations. Nothing in AS 06.55.120 - 06.55.195 16 may be interpreted to preempt or nullify a municipal ordinance that provides greater 17 protections, requirements, or restrictions if the municipal ordinance does not directly 18 conflict with AS 06.55.120 - 06.55.195. 19 Sec. 06.55.195. Definitions. In AS 06.55.120 - 06.55.195, 20 (1) "blockchain analytics" means the analysis of data from blockchains 21 or public distributed ledgers, including associated transaction information; 22 (2) "blockchain analytics and tracing software" includes a software 23 service that uses blockchain analytics to provide risk-specific information and tracing 24 of virtual currency wallet addresses; 25 (3) "charges" include 26 (A) fees or expenses paid by a user; and 27 (B) the difference between the market price of the virtual 28 currency and the price of the virtual currency charged to the user; 29 (4) "user" means a person that initiates, authorizes, or completes a 30 transaction involving virtual currency through a virtual currency kiosk for the purpose 31 of purchasing, selling, transferring, or otherwise exchanging virtual currency; 01(5) "virtual currency address" means an alphanumeric identifier 02 associated with a virtual currency wallet that identifies the location to which a virtual 03 currency transaction can be sent; 04 (6) "virtual currency kiosk" means an electronic terminal that enables 05 the virtual currency kiosk operator to facilitate a virtual currency exchange by 06 connecting directly with another person that exchanges virtual currency, drawing upon 07 virtual currency in the possession of the electronic terminal's operator, or by another 08 method; 09 (7) "virtual currency kiosk operator" means a person that engages in 10 virtual currency business activity by way of a virtual currency kiosk located in the 11 state or a person that owns, operates, manages, or provides custodial or noncustodial 12 services for a virtual currency kiosk located in the state through which virtual currency 13 business activity is offered; 14 (8) "virtual currency kiosk transaction" means a transaction conducted 15 or performed, in whole or in part, through a virtual currency kiosk or a transaction 16 made at a virtual currency kiosk to purchase virtual currency with United States 17 dollars or to sell virtual currency for United States dollars; 18 (9) "virtual currency wallet" means a software application or other 19 mechanism providing a means to hold the keys necessary to access and transfer virtual 20 currency. 21 * Sec. 2. AS 06.55.840 is amended by adding a new subsection to read: 22 (b) This section does not apply to a refund requested for a virtual currency 23 kiosk transaction under AS 06.55.120 - 06.55.195. 24 * Sec. 3. AS 06.55.990(15) is amended to read: 25 (15) "money transmission" 26 (A) means 27 (i) selling or issuing payment instruments or stored 28 value to a person located in this state; 29 (ii) [, OR] receiving money or monetary value for 30 transmission to the state, from the state, or within the state; or 31 (iii) operating a virtual currency kiosk; 01 (B) [, BUT] does not mean [INCLUDE] the provision solely of 02 [DELIVERY,] online services, telecommunications services, or network 03 access; 04 * Sec. 4. AS 06.55.990 is amended by adding new paragraphs to read: 05 (25) "control of virtual currency," when used in reference to a 06 transaction or relationship involving virtual currency, means the power to execute 07 unilaterally or prevent indefinitely a virtual currency transaction; 08 (26) "in this state" means at a physical location within this state for a 09 transaction requested in person; 10 (27) "virtual currency" 11 (A) means a digital representation of value that 12 (i) is used as a medium of exchange, unit of account, or 13 store of value; and 14 (ii) is not money, whether or not denominated in 15 money; 16 (B) does not mean 17 (i) a transaction in which a merchant grants, as part of 18 an affinity or rewards program, value that cannot be taken from or 19 exchanged with the merchant for money, bank credit, or virtual 20 currency; or 21 (ii) a digital representation of value issued by or on 22 behalf of a publisher and used solely within an online game, game 23 platform, or family of games sold by the same publisher or offered on 24 the same game platform; 25 (28) "virtual currency administration" means issuing virtual currency 26 with the authority to redeem the currency for money, bank credit, or other virtual 27 currency; 28 (29) "virtual currency business activity" means 29 (A) exchanging, transferring, or storing virtual currency or 30 engaging in virtual currency administration, whether directly or through an 31 agreement with a virtual currency control services vendor; 01 (B) holding electronic precious metals or electronic certificates 02 representing interests in precious metals on behalf of another person or issuing 03 shares or electronic certificates representing interests in precious metals; or 04 (C) exchanging one or more digital representations of value 05 used within one or more online games, game platforms, or family of games for 06 (i) virtual currency offered by or on behalf of the same 07 publisher from which the original digital representation of value was 08 received; or 09 (ii) money or bank credit outside the online game, game 10 platform, or family of games offered by or on behalf of the same 11 publisher from which the original digital representation of value was 12 received; 13 (30) "virtual currency control services vendor" means a person that has 14 control of virtual currency solely under an agreement with a person that, on behalf of 15 another person, assumes control of virtual currency; 16 (31) "virtual currency exchange" means to 17 (A) assume control of virtual currency from or on behalf of a 18 person, at least momentarily; 19 (B) sell, trade, or convert 20 (i) virtual currency for money, bank credit, or one or 21 more forms of virtual currency or money; or 22 (ii) bank credit for one or more forms of virtual 23 currency; 24 (32) "virtual currency transfer" means to assume control of virtual 25 currency from or on behalf of a person and to 26 (A) credit the virtual currency to the account of another person; 27 (B) move the virtual currency from one account of a person to 28 another account of the same person; or 29 (C) relinquish control of virtual currency to another person. 30 * Sec. 5. AS 45.50.471(b) is amended by adding a new paragraph to read: 31 (58) violating AS 06.55.120 - 06.55.195 (virtual currency kiosks). 01 * Sec. 6. This Act takes effect October 1, 2026.
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