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Senate committee clears securities department bill on virtual currency kiosks and data security
Summary
The committee approved agency‑sponsored updates to the Uniform Money Services Act to add anti‑fraud and compliance requirements for virtual currency kiosks and new data‑security expectations for money services licensees.
The Arkansas Securities Department presented an agency bill that would update the Uniform Money Services Act to (1) add a regulatory framework for virtual currency kiosks with anti‑fraud disclosures and transaction limits and (2) require data‑security obligations for money services licensees consistent with model rules, testimony said.
Campbell McLaurin (deputy commissioner, Arkansas Securities Department) and other department staff told the committee that the kiosk provisions were negotiated with the largest operators and aim to protect consumers — particularly the elderly — from fraud schemes that encourage cash purchases of virtual currency at kiosks. The bill would permit the commissioner to require higher surety bond coverage for risky license applicants or activities; witnesses said guardrails and additional rulemaking would be used to implement discretionary bond requirements.
The data security portion of the proposal relies on an industry model (described in testimony as aligned with the FTC Safeguards Rule via a CSBS model) to require non‑bank financial institutions to implement stronger cybersecurity and data breach prevention measures.
The committee approved the bill on a voice vote; sponsors said the industry participated in drafting the kiosk language and that rulemaking would set precise operational guardrails.
