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House passes bill to regulate virtual currency kiosks with consumer-disclosure amendment
Summary
The legislature cleared Senate Bill 189 to regulate virtual currency kiosks, including a $2,000 daily cap and consumer-disclosure requirements after floor amendments removed mandatory backdoor access to wallets.
The House passed Senate Bill 189, a measure regulating virtual-currency kiosks and requiring consumer disclosures for wallet products. Sponsors said the bill sets transaction caps at $2,000 per day for kiosks and adds ‘‘guard rails’’ to protect consumers from fraud.
Representative Knox explained the bill is largely drawn from House Bill 380 language and that the kiosk regulation will require identification on every dollar-in transaction and impose a daily cap. The House adopted a House floor amendment that removed language requiring companies to provide backdoor access to digital wallets; instead the adopted floor amendment requires clear disclosures that losing private keys or passcodes can result in permanent loss of assets.
Why it matters: The change recognizes that some wallet designs intentionally lack a company-accessible backdoor as a security feature; sponsors replaced the backdoor requirement with mandated consumer disclosures about wallet limitations and setup procedures.
Votes: The House adopted House Committee Substitute One and House floor amendment two; the adoption and final passage votes on Senate Bill 189 were recorded in the House as 81 yay, 7 nay for passage as amended.
Next steps: The bill, as amended, advances to enrollment and signature. Sponsors said it balances consumer protections with recognition of how private-key wallets operate.
