HB 5353 would create a regulatory framework for virtual currency kiosks and digital wallets. Operators would be classified as money transmitters, requiring annual licenses and adherence to strict disclosure and refund protocols. The committee substitute limits the total fees and commissions a kiosk operator can charge per transaction, with a 15% flat fee limit. The bill limits the daily transaction limits for existing customers and new customers, with existing customers limited to a $10,000 daily limit.
According to AARP-WV, cryptocurrency kiosks are unregulated in many states, including West Virginia. But 24 states have taken some action, with 17 of them passing comprehensive legislation to protect consumers. “It is a substantial problem nationwide,” Criss said during the committee hearing on the bill Wednesday. “We’re literally watching people take thousands of dollars and put into these machines and not be able to recover. … Most generally it’s the senior citizens … that have accumulated some cash, and they are being duped to think they’re getting something for nothing.”
“You have some states as low as 3%. Some states have no fee limit at all,” Lawson said Thursday. “We have had discussions and we’re continuing discussions with the various interested parties. At this point, we’ve kind of come to this middle road as we continue throughout the process.” HB 5353 includes several layers of protection aimed at disclosures and the recovery of funds in fraudulent scenarios. Licensees are subject to disclosure requirements regarding their interactions with customers; these disclosures must be provided to the customer, and the operator must obtain a written receipt of the disclosures.
Leave a Reply