Florida Senate - 2026                        COMMITTEE AMENDMENT
       Bill No. SB 198
       
       
       
       
       
       
                                Ì959472BÎ959472                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/29/2026           .                                
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       The Committee on Banking and Insurance (Rouson) recommended the
       following:
       
    1         Senate Substitute for Amendment (695850) (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Subsection (23) of section 560.103, Florida
    7  Statutes, is amended, and subsections (37) through (39) are
    8  added to that section, to read:
    9         560.103 Definitions.—As used in this chapter, the term:
   10         (23) “Money services business” means any person located in
   11  or doing business in this state, from this state, or into this
   12  state from locations outside this state or country who acts as a
   13  payment instrument seller, foreign currency exchanger, check
   14  casher, or money transmitter, or virtual currency kiosk
   15  business.
   16         (37)“Virtual currency kiosk” means an electronic terminal
   17  that acts as a mechanical agent of the kiosk business, enabling
   18  the kiosk business to facilitate the exchange of virtual
   19  currency for fiat currency or other virtual currency for a
   20  customer.
   21         (38)“Virtual currency kiosk business” or “kiosk business”
   22  means a corporation, limited liability company, limited
   23  liability partnership, or foreign entity qualified to do
   24  business in this state which offers virtual currency kiosk
   25  services to a customer in this state.
   26         (39)“Virtual currency kiosk transaction” means the process
   27  in which a customer uses a virtual currency kiosk to exchange
   28  virtual currency for fiat currency or other virtual currency. A
   29  transaction begins at the point at which the customer is able to
   30  initiate a transaction after the customer is given the option to
   31  select the type of transaction or account and does not include
   32  any of the screens that display the required terms and
   33  conditions, disclaimers, or attestations.
   34         Section 2. Paragraph (b) of subsection (2) of section
   35  560.105, Florida Statutes, is amended to read:
   36         560.105 Supervisory powers; rulemaking.—
   37         (2) The commission may adopt rules pursuant to ss.
   38  120.536(1) and 120.54 to administer this chapter.
   39         (b) Rules adopted to regulate money services businesses,
   40  including deferred presentment providers and virtual currency
   41  kiosk businesses, must be responsive to changes in economic
   42  conditions, technology, and industry practices.
   43         Section 3. Part V of chapter 560, Florida Statutes,
   44  consisting of ss. 560.501-560.507, Florida Statutes, is created
   45  and entitled “Virtual Currency Kiosk Businesses.”
   46         Section 4. Section 560.501, Florida Statutes, is created to
   47  read:
   48         560.501Definitions.—For purposes of this part, the term:
   49         (1)“Blockchain” means a mathematically secured,
   50  chronological, decentralized, distributed, and digital ledger or
   51  database that consists of records of transactions that cannot be
   52  altered retroactively.
   53         (2)“Blockchain analytics” means the process of examining,
   54  monitoring, and gathering insights from the data and transaction
   55  patterns on a blockchain network. The primary aims of blockchain
   56  analytics are to understand and monitor the network’s health,
   57  track transaction flows, and identify potential security
   58  threats, including illicit activity, in order to extract
   59  actionable insights.
   60         (3) “Daily transaction limit” means a new customer
   61  transaction of no more than $2,000 per calendar day, or an
   62  existing customer transaction of no more than $10,000 per
   63  calendar day, whether through a single transaction or multiple
   64  transactions or whether through one or more virtual currency
   65  kiosks.
   66         (4)“Existing customer” means a customer who has transacted
   67  with a kiosk business on its virtual currency kiosk for 7 or
   68  more days.
   69         (5)“New customer” means a customer who has transacted with
   70  a kiosk business on its virtual currency kiosk for fewer than 7
   71  days.
   72         (6) “Registrant” means a corporation, limited liability
   73  company, limited liability partnership, or foreign entity
   74  qualified to do business in this state which offers virtual
   75  currency kiosk services and receives notice from the office that
   76  the agency has granted an application for registration pursuant
   77  to the provisions of this part.
   78         (7)“Transaction hash” means a unique identifier consisting
   79  of a string of characters which provides a verifiable record
   80  that a transaction has been confirmed and added to the
   81  blockchain.
   82         (8)“Wallet” means hardware or software that enables a
   83  customer to store, use, send, receive, and spend virtual
   84  currency or store virtual currency private keys or passcodes
   85  enabling the same.
   86         Section 5. Effective March 1, 2027, section 560.502,
   87  Florida Statutes, is created to read:
   88         560.502Registration required; exemptions; penalties.—
   89         (1)Except as provided in subsection (2), a virtual
   90  currency kiosk business may not operate in this state without
   91  first registering, or renewing its registration, in accordance
   92  with s. 560.503. The office shall give written notice to each
   93  applicant that the office has granted or denied the application
   94  for registration.
   95         (2)A money transmitter that is licensed as a money
   96  services business pursuant to s. 560.141 and offers virtual
   97  currency kiosk services is exempt from registration as a virtual
   98  currency kiosk business but is subject to ss. 560.504, 560.505,
   99  560.506, and 560.507.
  100         (3)An entity, in the course of its business, may not act
  101  as an intermediary with the ability to unilaterally execute or
  102  indefinitely prevent a virtual currency kiosk transaction, or
  103  otherwise meet the definition of a money transmitter as defined
  104  in s. 560.103, without being licensed as a money services
  105  business pursuant to s. 560.141.
  106         (4)A virtual currency kiosk business registration issued
  107  under this part is not transferable or assignable.
  108         Section 6. Section 560.503, Florida Statutes, is created to
  109  read:
  110         560.503Registration applications.—
  111         (1)To apply to be registered as a virtual currency kiosk
  112  business under this part, the applicant must submit all of the
  113  following information to the office:
  114         (a)A completed registration application on forms
  115  prescribed by rule of the commission. The application must
  116  include the following information:
  117         1.The legal name, including any fictitious or trade names
  118  used by the applicant in the conduct of its business, and the
  119  physical and mailing addresses of the applicant.
  120         2.The date of the applicant’s formation and the state in
  121  which the applicant was formed, if applicable.
  122         3.The name, social security number, alien identification
  123  or taxpayer identification number, business and residence
  124  addresses, and employment history for the past 5 years for each
  125  control person as defined in s. 560.103.
  126         4.A description of the organizational structure of the
  127  applicant, including the identity of any parent or subsidiary of
  128  the applicant, and the disclosure of whether any parent or
  129  subsidiary is publicly traded.
  130         5.The name and mailing address of the registered agent in
  131  this state for service of process.
  132         6.The physical address of the location of each virtual
  133  currency kiosk through which the applicant proposes to conduct
  134  or is conducting business in this state.
  135         7. An attestation that the applicant has developed clearly
  136  documented policies, processes, and procedures regarding the use
  137  of blockchain analytics to prevent transfers to wallet addresses
  138  linked to known criminal activity, including the manner in which
  139  such blockchain analytics activity will integrate into its
  140  compliance controls, and that the applicant will maintain and
  141  comply with such blockchain analytics policies, processes, and
  142  procedures.
  143         8.Any other information as required by this chapter or
  144  commission rule.
  145         (b)Any information needed to resolve any deficiencies
  146  found in the application within a time period prescribed by
  147  rule.
  148         (2) A virtual currency kiosk business operating in this
  149  state on or before January 1, 2027, must submit a registration
  150  application to the office within 30 days after that date.
  151         (3)A registrant shall report, on a form prescribed by rule
  152  of the commission, any change in the information contained in an
  153  initial application form or an amendment thereto within 30 days
  154  after the change is effective.
  155         (4)A registrant must renew its registration annually on or
  156  before December 31 of the year preceding the expiration date of
  157  the registration. To renew such registration, the registrant
  158  must submit a renewal application that provides:
  159         (a)The information required in paragraph (1)(a) if there
  160  are changes in the application information, or an affidavit
  161  signed by the registrant that the information remains the same
  162  as the prior year’s information.
  163         (b)Upon request by the office, evidence that the
  164  registrant has been operating in compliance with ss. 560.504,
  165  560.505, 560.506, and 560.507. Such evidence may be prescribed
  166  by rule by the commission and may include, but need not be
  167  limited to, all of the following:
  168         1.Current disclosures presented to customers during the
  169  transaction process.
  170         2.Current use of blockchain analytics to prevent transfers
  171  to wallet addresses linked to known criminal activity.
  172         (5)A registrant that does not renew its registration by
  173  December 31 of the year preceding expiration shall be made
  174  inactive for 60 days. A registrant may not conduct business
  175  while its registration is inactive.
  176         (6)To renew an inactive registration, a registrant must,
  177  within 60 days after the registration becomes inactive, submit
  178  all of the following:
  179         (a)The information required in paragraph (1)(a) if there
  180  are changes in the application information, or an affidavit
  181  signed by the registrant that the information remains the same
  182  as the prior year’s information.
  183         (b)Evidence that the registrant was operating in
  184  compliance with ss. 560.504, 560.505, 560.506, and 560.507. Such
  185  evidence may be prescribed by rule by the commission and may
  186  include, but need not be limited to, all of the following:
  187         1.Current disclosures presented to customers during the
  188  transaction process.
  189         2. Reports that confirm compliance with daily transaction
  190  limits.
  191         3. Copies of receipts provided to customers.
  192         4. Records showing refunds provided to customers in
  193  required circumstances.
  194         5.Current use of blockchain analytics to prevent transfers
  195  to wallet addresses linked to known criminal activity.
  196  
  197  Any renewal registration made pursuant to this subsection
  198  becomes effective upon the date the office approves the
  199  application for registration. The office shall approve the
  200  application for renewal registration within a timeframe
  201  prescribed by rule.
  202         (7)Except as provided in s. 560.502(2), failure to submit
  203  an application to renew a virtual currency kiosk business’s
  204  registration within 60 days after the registration becomes
  205  inactive shall result in the registration becoming expired. If
  206  the registration is expired, a new application to register the
  207  virtual currency kiosk business pursuant to subsection (1) must
  208  be submitted to the office and a certification of registration
  209  must be issued by the office before the virtual currency kiosk
  210  business may conduct business in this state.
  211         (8)If a control person of a registrant or prospective
  212  registrant has engaged in any unlawful business practice, or
  213  been convicted or found guilty of, or pled guilty or nolo
  214  contendere to, regardless of adjudication, a crime involving
  215  dishonest dealing, fraud, acts of moral turpitude, or other acts
  216  that reflect an inability to engage lawfully in the business of
  217  a registered virtual currency kiosk business, the office may
  218  deny the prospective registrant’s initial registration
  219  application or the registrant’s renewal application.
  220         (9)The office shall deny the application of a virtual
  221  currency kiosk business that submits a renewal application and
  222  fails to provide evidence of compliance upon request pursuant to
  223  paragraph (4)(b) or as required in paragraph (6)(b).
  224         (10)Any false statement made by a virtual currency kiosk
  225  business in an application for registration under this section
  226  renders the registration void. A void registration may not be
  227  construed as creating a defense to any prosecution for violation
  228  of this chapter.
  229         Section 7. Section 560.504, Florida Statutes, is created to
  230  read:
  231         560.504Disclosures.—Before a customer initiates a virtual
  232  currency kiosk transaction, the virtual currency kiosk business
  233  must ensure that the virtual currency kiosk:
  234         (1) Requires the customer to confirm whether the customer
  235  has conducted any transactions at another virtual currency kiosk
  236  on the same calendar day and any amount of such transactions to
  237  determine how much, if any, the customer may transact at the
  238  virtual currency kiosk before reaching the daily transaction
  239  limit.
  240         (2) Clearly and conspicuously display the following
  241  disclosure to the customer on the screen:
  242  
  243         WARNING: FRAUD OFTEN STARTS WITH CONTACT FROM A
  244         STRANGER. IF YOU HAVE BEEN DIRECTED TO THIS MACHINE BY
  245         SOMEONE CLAIMING TO BE A GOVERNMENT AGENT, BILL
  246         COLLECTOR, LAW ENFORCEMENT OFFICER, OR ANYONE YOU DO
  247         NOT KNOW PERSONALLY, STOP THIS TRANSACTION IMMEDIATELY
  248         AND CONTACT YOUR FINANCIAL ADVISOR OR LOCAL LAW
  249         ENFORCEMENT.
  250  
  251         Section 8. Section 560.505, Florida Statutes, is created to
  252  read:
  253         560.505Transaction limits.—A virtual currency kiosk
  254  business may not permit a new customer to transact more than
  255  $2,000 per calendar day, whether through a single transaction or
  256  multiple transactions or whether through one or more virtual
  257  currency kiosks. A virtual currency kiosk business may not
  258  permit an existing customer to transact more than $10,000 per
  259  calendar day, whether through a single transaction or multiple
  260  transactions or whether through one or more virtual currency
  261  kiosks.
  262         Section 9. Section 560.506, Florida Statutes, is created to
  263  read:
  264         560.506Mandatory receipt.—Upon completion of a virtual
  265  currency transaction, the virtual currency kiosk business must
  266  provide the customer with an electronic receipt that includes
  267  all of the following:
  268         (1)The name and contact information of the virtual
  269  currency kiosk business, including an e-mail address and a toll
  270  free telephone number for such business.
  271         (2)The date, time, amount of the transaction in United
  272  States dollars, and type of the transaction.
  273         (3)The transaction hash and each wallet used.
  274         (4)The total fee charged for the transaction.
  275         (5)The exchange rate, if applicable.
  276         (6)A statement of the virtual currency kiosk’s liability,
  277  if any, for nondelivery or delayed delivery of the virtual
  278  currency.
  279         (7)The refund policy of the virtual currency kiosk
  280  business.
  281         Section 10. Section 560.507, Florida Statutes, is created
  282  to read:
  283         560.507Mandatory refund.—A virtual currency kiosk business
  284  must issue a full refund within 72 hours to a customer for the
  285  customer’s first virtual currency transaction if all of the
  286  following conditions are met:
  287         (1)The customer transferred virtual currency to a wallet
  288  or exchange located outside the United States.
  289         (2)Within 60 days, the customer notifies the virtual
  290  currency kiosk business and a law enforcement or governmental
  291  agency regarding the fraudulent nature of the transaction.
  292         (3)The customer provides proof of the alleged fraud to the
  293  virtual currency kiosk business, such as a police report or a
  294  notarized affidavit.
  295         Section 11. Except as otherwise expressly provided in this
  296  act, this act shall take effect January 1, 2027.
  297  
  298  ================= T I T L E  A M E N D M E N T ================
  299  And the title is amended as follows:
  300         Delete everything before the enacting clause
  301  and insert:
  302                        A bill to be entitled                      
  303         An act relating to virtual currency kiosks; amending
  304         s. 560.103, F.S.; revising the definition of the term
  305         “money services business”; defining terms; amending s.
  306         560.105, F.S.; revising the requirements for certain
  307         rules adopted by the Financial Services Commission;
  308         creating part V of ch. 560, F.S., entitled “Virtual
  309         Currency Kiosk Businesses”; creating s. 560.501, F.S.;
  310         defining terms; creating s. 560.502, F.S.; prohibiting
  311         a virtual currency kiosk business from operating in
  312         this state without registering or renewing its
  313         registration; requiring the Office of Financial
  314         Regulation to give a specified notice to applicants;
  315         specifying that certain money transmitters are exempt
  316         from registration as a virtual currency kiosk business
  317         but are subject to certain provisions; prohibiting
  318         certain entities from performing certain actions
  319         without being licensed as a money services business;
  320         specifying that virtual currency kiosk business
  321         registrations are not transferable or assignable;
  322         creating s. 560.503, F.S.; requiring applicants to
  323         submit certain information to the office to be
  324         registered as a virtual currency kiosk business;
  325         requiring certain virtual currency kiosk businesses to
  326         submit a registration application to the office by a
  327         specified date; requiring registrants to report a
  328         change in the information within a specified
  329         timeframe; requiring registrants to renew their
  330         registration annually; specifying requirements for a
  331         renewal application; requiring registrants to be made
  332         inactive for a specified timeframe under certain
  333         circumstances; prohibiting registrants from conducting
  334         business while registration is inactive; specifying
  335         requirements for registrants to renew an inactive
  336         registration; providing that a renewal registration
  337         becomes effective on a specified date; requiring the
  338         office to approve applications for renewal
  339         registration within a specified timeframe; providing
  340         that a registration expires under certain
  341         circumstances; providing requirements if a
  342         registration expires; authorizing the office to deny
  343         certain applications under certain circumstances;
  344         providing that certain false statements made by a
  345         virtual currency kiosk business render its
  346         registration void; providing construction; creating s.
  347         560.504, F.S.; requiring a virtual currency kiosk
  348         business to ensure that the virtual currency kiosk
  349         requires certain attestations from the customer and
  350         displays a certain disclosure; creating s. 560.505,
  351         F.S.; prohibiting a virtual currency kiosk business
  352         from permitting new or existing customers from
  353         transacting more than specified dollar amounts per
  354         calendar day; creating s. 560.506, F.S.; requiring a
  355         virtual currency kiosk business to provide a customer
  356         with a specified electronic receipt upon completion of
  357         a virtual currency transaction; creating s. 560.507,
  358         F.S.; requiring a virtual currency kiosk business to
  359         issue a full refund under certain circumstances;
  360         providing effective dates.