Bill Text: MS SB2709 | 2026 | Regular Session | Introduced
Bill Title: Virtual currency kiosks and civil forfeiture of property used in the course of crimes; create provisions concerning.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2026-02-03 - Died In Committee [SB2709 Detail]
Download: Mississippi-2026-SB2709-Introduced.html
MISSISSIPPI LEGISLATURE
2026 Regular Session
To: Business and Financial Institutions
By: Senator(s) Boyd
Senate Bill 2709
AN ACT TO ENACT THE "MONEY TRANSMISSION MODERNIZATION ACT FOR VIRTUAL CURRENCY KIOSKS"; TO DEFINE TERMS; TO PROVIDE LICENSING REQUIREMENTS FOR VIRTUAL CURRENCY KIOSK OPERATORS; TO PROHIBIT VIRTUAL OPERATORS FROM USING ANY SIGN USING THE WORDS "AUTOMATIC TELLER MACHINE" OR "ATM"; TO PROVIDE DISCLOSURE REQUIREMENTS; TO REQUIRE OPERATORS TO DISCLOSE ALL MATERIAL RISKS ASSOCIATED WITH VIRTUAL CURRENCY; TO REQUIRE SPECIFIC DISCLOSURES; TO PROVIDE FOR NEW ACCOUNTS AND INITIAL TRANSACTIONS; TO REQUIRE OPERATORS TO DISCLOSE TO CUSTOMERS THE TERMS AND CONDITIONS OF A TRANSACTION; TO REQUIRE CERTAIN TERMS AND CONDITIONS; TO REQUIRE OPERATORS TO ENSURE THAT EACH CUSTOMER ACKNOWLEDGES RECEIPT OF ALL REQUIRED DISCLOSURES; TO PROVIDE FOR RECEIPT REQUIREMENTS; TO LIMIT THE TOTAL AMOUNT OF A FEES AND COMMISSION CHARGE TO NOT MORE THAN 15% OF THE AMOUNT OF THE VIRTUAL CURRENCY TRANSACTION; TO PROVIDE DAILY TRANSACTION LIMITS PER CUSTOMER; TO PROVIDE FOR REFUNDS FOR NEW CUSTOMERS UPON FRAUDULENT ACTIVITY; TO REQUIRE CUSTOMER IDENTIFICATION AND PROVIDE FOR WALLET RESTRICTIONS; TO REQUIRE OPERATORS TO USE BLOCKCHAIN ANALYTICS SOFTWARE; TO REQUIRE OPERATORS TO TAKE REASONABLE STEPS TO DETECT AND PREVENT FRAUD; TO REQUIRE OPERATORS TO OFFER CUSTOMER SERVICE; TO PROVIDE ADDITIONAL PROTECTIONS FOR ELDER ADULTS; TO REQUIRE OPERATORS TO DESIGNATE AND EMPLOY A CHIEF COMPLIANCE OFFICER; TO PROVIDE ADDITIONAL POWERS TO THE COMMISSIONER UNDER THE MONEY TRANSMISSION MODERNIZATION ACT; TO PROVIDE THAT ALL PROPERTY USED IN THE COUSE OF CERTAIN CRIMES IS SUBJECT TO CIVIL FORFEITURE; TO AUTHORIZE THE ATTORNEY GENERAL OR ANY LAW ENFORCEMENT AGENCY TO SEIZE PROPERTY ACCORDING TO CERTAIN CONDITIONS; TO PROVIDE FOR ISSUANCE OF WARRANTS; TO PROVIDE FOR RELEASE OF SEIZED PROPERTY SUBJECT TO CERTAIN REQUIREMENTS; TO PROVIDE FOR RETURN OF STOLEN PROPERTY UPON MEETING CERTAIN REQUIREMENTS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Short title. This act shall be known and may be cited as the "Money Transmission Modernization Act for Virtual Currency Kiosks."
SECTION 2. Definitions. For the purposes of this chapter, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:
(a) "Blockchain analytics" means the analysis of data from blockchains or public distributed ledgers, including associated transaction information to provide risk-specific information about virtual-currency transactions and virtual currency addresses.
(b) "Blockchain analytics software" means a software service that uses blockchain analytics data to provide risk-specific information about virtual currency wallet addresses, among other things.
(c) "Elder adult" means a person who is sixty (60) years of age or older.
(d) "Existing customer" means an individual who transacts with the virtual currency kiosk operator following the thirty-day period after the first virtual currency kiosk transaction with the virtual currency kiosk operator.
(e) "New customer" means an individual who has never previously transacted with the virtual currency kiosk operator. The new customer shall remain defined as such during the thirty-day period after the first virtual currency kiosk transaction with the virtual currency kiosk operator.
(f) "Transaction hash" means a unique identifier made up of a string of characters that acts as a record of and provide proof that the transaction was verified and added to the blockchain.
(g) "Unique identifier" means a number or other identifier that is assigned by a protocol established by the automated licensing system approved by the commissioner.
(h) "Virtual currency address" means an alphanumeric identifier associated with a virtual currency wallet identifying the location to which a virtual currency transaction can be sent.
(i) "Virtual currency kiosk" means a stand-alone automated platform through which a consumer may deposit or receive cash or use a credit or debit card to obtain virtual currency services.
(j) "Virtual currency kiosk transaction" means a transaction conducted or performed, in whole or in part, by electronic means via a virtual currency kiosk. Virtual currency kiosk transaction also means a transaction made at a virtual currency kiosk to purchase virtual currency with U.S. dollars or to sell virtual currency for U.S. dollars.
(k) "Virtual currency kiosk operator" means a person that engages in virtual currency business activity through a virtual currency kiosk located in this state or a person that owns, operates or manages a virtual currency kiosk located in this state through which virtual currency business activity is offered.
(l) "Virtual currency storage" means:
(i) Maintaining possession, custody or control over virtual currency on behalf of another person, including as a virtual currency control-services vendor;
(ii) Issuing, transferring or otherwise granting or providing to any person in this State any claim or right or any physical, digital, or electronic instrument, receipt, certificate, or record representing any claim or right to receive, redeem, withdraw, transfer, exchange, or control any virtual currency or amount of virtual currency; or
(iii) Receiving possession, custody or control over virtual currency from a person in this State in return for a promise or obligation to return, repay, exchange, or transfer such virtual currency or a like amount of such virtual currency.
(m) "Virtual currency wallet" means a software application or other mechanism providing a means for holding, storing and transferring virtual currency.
SECTION 3. Licensing requirements. (1) A virtual currency kiosk operator may not engage in virtual currency kiosk activity or hold itself out as being able to engage in such activity with or on behalf of another person unless the operator is licensed in this state as a money transmitter under the Money Transmission Modernization Act, Section 75-16-1 et seq.
(2) A virtual currency kiosk operator shall comply with all requirements of a money transmitter and shall be subject to all provisions of the Money Transmission Modernization Act, Section 75-16-1 et seq.
SECTION 4. Name requirements. (1) A virtual currency kiosk operator may not use any sign or handwritten or printed paper using the words "automatic teller machine" or "ATM" or any other words in a manner reasonably calculated to convey the impression that the entity is engaged in the business of banking unless the act is done by or on behalf of an entity conducting banking activities pursuant to Title 81, Mississippi Code of 1972.
(2) Nothing in this section shall prohibit the commissioner from making a determination that a name proposed to be registered is potentially misleading to the public and require the registrant to select a name which is not potentially misleading.
SECTION 5. Disclosure requirements. (1) Material risks.
(a) The virtual currency kiosk operator, in establishing a relationship with a customer and before entering into an initial virtual currency kiosk transaction on behalf of or with the customer, shall disclose in clear, conspicuous and legible writing in English and in the language principally used by the licensee or authorized delegate to advertise, solicit or negotiate, either orally or in writing, for a transaction conducted in person, electronically or by phone, if other than English, all material risks associated with virtual currency generally.
(b) The material risks associated with virtual currency required to be disclosed under subsection (1)(a) include without limitation:
(i) A disclosure that is acknowledged by the customer and provided separately from the disclosures provided under subparagraphs (ii) and (vii) of this paragraph, and written prominently and in bold type, stating the following:
1. WARNING: CONSUMER FRAUD OFTEN STARTS WITH CONTACT FROM A STRANGER WHO IS INITIATING A DISHONEST SCHEME. I UNDERSTAND THAT CRIMINAL ACTIVITY MAY APPEAR IN MANY FORMS, INCLUDING:
a. Claims of a frozen bank account or credit card.
b. Fraudulent bank transactions.
c. Claims of identity theft or job offerings in exchange for payments.
d. Requests for payments to government agencies or companies.
e. Requests for disaster relief donations or loans.
f. Offers to purchase tickets for lotteries, sweepstakes or drawings for vehicles.
g. Prompts to click on desktop popups, such as virus warnings or communication from alleged familiar merchants.
h. Communication from someone impersonating a representative of your bank or a law enforcement officer.
2. IF YOU BELIEVE YOU ARE BEING SCAMMED, CALL A LOCAL LAW ENFORCEMENT OFFICER BEFORE ANY TRANSACTION.
3. WARNING: FUNDS LOST DUE TO USER ERROR OR FRAUD MAY NOT BE RECOVERABLE. TRANSACTIONS CONDUCTED ON THIS VIRTUAL CURRENCY KIOSK ARE IRREVERSIBLE. PROTECT YOURSELF FROM FRAUD. NEVER SEND MONEY TO SOMEONE YOU DO NOT KNOW. I UNDERSTAND THESE RISKS AND WISH TO CONTINUE WITH CONDUCTING MY VIRTUAL CURRENCY KIOSK TRANSACTION.
(ii) Virtual currency is not backed or insured by the government and accounts and value balances are not subject to protections of the Federal Deposit Insurance Corporation, National Credit Union Administration or Securities Investor Protection Corporation;
(iii) A virtual currency transaction may be deemed to be made when recorded on a public ledger which may not be the date or time when the customer initiates the virtual currency transaction;
(iv) The value of virtual currency may be derived from the continued willingness of market participants to exchange fiat currency for virtual currency which may result in the permanent and total loss of the value of a particular virtual currency if the market for that virtual currency disappears;
(v) The volatility and unpredictability of the price of virtual currency relative to fiat currency may result in a significant loss over a short period of time;
(vi) A bond maintained by the virtual currency kiosk operator for the benefit of the customers of the virtual currency kiosk operator may not be sufficient to cover all losses incurred by customers; and
(vii) 1. Virtual currency transactions are irreversible and may be used by a person seeking to defraud customers.
2. As used in item 1. of this subparagraph, "seeking to defraud customers" includes, without limitation, a person:
a. Impersonating a customer's family or friends;
b. Threatening jail time;
c. Stating that a customer's identity has been stolen;
d. Insisting that a customer withdraw money from the customer's bank account and purchase virtual currency; or
e. Alleging that a customer's personal computer has been hacked.
(2) New accounts and initial transactions. (a) A virtual currency kiosk operator, when opening an account for a new customer and before entering into an initial virtual currency transaction for, on behalf of, or with the customer, shall disclose in clear, conspicuous and legible writing in English and in the language principally used by the licensee or authorized delegate to advertise, solicit or negotiate, either orally or in writing, for a transaction conducted in person, electronically, or by phone, if other than English, using not less than twenty-four point sans-serif-type font, all relevant terms and conditions associated with the products, services and activities of the virtual currency kiosk operator and virtual currency generally.
(b) The disclosure required under paragraph (a) of this subsection (2) shall include, without limitation:
(i) The customer's liability for unauthorized virtual currency transactions;
(ii) The customer's right to stop payment of a preauthorized virtual currency transfer and the procedure used to initiate a stop-payment order;
(iii) The circumstances under which the virtual currency kiosk operator, absent a court or government order, will disclose information concerning the customer's account to third parties;
(iv) The requirement that the virtual currency kiosk operator communicate to the customer what customer information may be disclosed to third parties;
(v) The customer's right to receive a receipt for a virtual currency transaction at the time of the transaction;
(vi) Upon a change in the rules or policies of the operator, the customer's right to consent to the changed rules or policies before performing a transaction after the change; and
(vii) Any other disclosures that are customarily provided in connection with opening a person's account.
(3) Terms and conditions of the transaction. (a) A virtual currency kiosk operator, before each transaction in virtual currency for, on behalf of, or with a customer, shall disclose to the customer in an easily readable manner that is in clear, conspicuous and legible writing in English and in the language principally used by the licensee or authorized delegate to advertise, solicit or negotiate, either orally or in writing, for a transaction conducted in person, electronically, or by phone, if other than English, using not less than twenty-four point sans-serif-type font, the terms and conditions of the virtual currency transaction.
(b) The terms and conditions required under paragraph (a) of this subsection (3) shall include, without limitation:
(i) The amount of the transaction;
(ii) The total amount of all fees, expenses, commissions and charges borne by the customer, including without limitation applicable exchange rates, displayed both as a dollar amount and as a percentage of the transaction;
(iii) The type and nature of the virtual currency transaction;
(iv) A warning that, once executed, the virtual currency transaction may not be undone, if applicable;
(v) A daily virtual currency transaction limit according to Section 8 of this act;
(vi) The difference in the sale price of the virtual currency versus the current market price; and
(vii) Any other disclosures that are customarily given in connection with a virtual currency transaction.
(4) Customer acknowledgement of disclosures. A virtual currency kiosk operator shall ensure that each customer acknowledges receipt of all disclosures required under this section.
SECTION 6. Receipt requirements. (1) A virtual currency kiosk operator, upon the completion of a virtual currency transaction, shall provide to the customer a receipt, in both physical and electronic form, containing:
(a) The name of, and contact information for, the virtual currency kiosk operator, including without limitation the virtual currency kiosk operator's business address and a customer service telephone number established by the virtual currency kiosk operator to answer questions and register complaints;
(b) The name of the customer;
(c) The type, value, date and precise time of the virtual currency transaction, transaction hash or identification number, and each virtual currency address;
(d) The amount of the virtual currency transaction expressed in United States currency;
(e) The public virtual currency address of the customer;
(f) The unique identifier of the virtual currency kiosk operator;
(g) The full amount of each fee charged, including without limitation a fee charged directly or indirectly by the virtual currency kiosk operator, or a third party involved in the virtual currency transaction;
(h) The exchange rate, if applicable:
(i) Any tax collected by the virtual currency kiosk operator for the virtual currency transaction;
(j) A statement of the liability of the virtual currency kiosk operator for non-delivery or delayed delivery;
(k) A statement of the refund policy of the virtual currency kiosk operator;
(l) The name and telephone number of the Department of Banking and Consumer Finance and a statement disclosing that the virtual currency kiosk operator's customers may contact the department with questions or complaints about the virtual currency kiosk operator's virtual currency kiosk services; and
(m) Any additional information the commissioner may require.
(2) The receipt required under subsection (1) of this section:
(a) Shall be provided in:
(i) A retainable form;
(ii) English; and
(iii) The language principally used by the virtual currency kiosk operator to advertise, solicit or negotiate, orally or in writing; and
(b) May be provided electronically if the customer requests or agrees to receive an electronic receipt.
SECTION 7. Fee limits. The total amount of a fees and commissions charged for a virtual currency transaction shall not exceed fifteen percent (15%) of the amount of the virtual currency transaction.
SECTION 8. Daily transaction limits. A virtual currency kiosk operator shall not accept transactions of more than One Thousand Dollars ($1,000.00) in cash or the equivalent in virtual currency for new customers and Seven Thousand Five Hundred Dollars ($7,500.00) in cash or the equivalent for existing customers. Additionally, for new customers, the transaction limit shall not exceed Five Thousand Dollars ($5,000.00) in cash or the equivalent in virtual currency in the thirty-day period after the first virtual currency kiosk transaction with the virtual currency kiosk operator.
SECTION 9. Prevention of fraudulent activities. (1) Refunds for new customers. Upon the request of a customer, a virtual currency kiosk operator shall issue a refund to a new customer for the full amount of all transactions made within the thirty-day new customer time period. In order to receive a refund under this subsection, a new customer shall have been fraudulently induced to engage in the virtual currency transactions, shall have contacted both the virtual currency kiosk operator and a government or law enforcement entity to inform them of the fraudulent nature of the transaction agency within ninety (90) days of the last transaction to occur during the thirty-day new customer time period. In addition, such customer shall have submitted proof of the fraud incident, such as a police report or sworn declaration detailing the fraudulent nature of the transaction or transactions.
(2) Customer identification and wallet restrictions. Each virtual currency kiosk operator shall:
(a) Obtain a copy of a government-issued identification card that identifies each customer of the virtual currency kiosk operator;
(b) Maintain restrictions that prevent more than one customer of the virtual currency kiosk operator from using the same virtual currency wallet; and
(c) Be able to prevent designated virtual currency wallets from being used at a virtual currency kiosk owned or operated by the virtual currency kiosk operator.
(3) Blockchain analytics. All virtual currency kiosks operators shall use blockchain analytics software to assist in the prevention of sending purchased virtual currency from a kiosk to a digital wallet known to be affiliated with fraudulent, sanctioned or illicit activity at the time of a transaction. The commissioner may request evidence from any operator of current use of blockchain analytics.
(4) Anti-fraud policy. All virtual currency kiosk operators shall take reasonable steps to detect and prevent fraud, including establishing and maintaining a written anti-fraud policy, which shall include, but not be limited to, all of the following:
(a) The identification and assessment of fraud-related risk areas;
(b) Procedures and controls to protect against identified risks;
(c) Allocation of responsibility for monitoring risks; and
(d) Procedures for the periodic evaluation and revision of the anti-fraud procedures, controls and monitoring mechanism.
(5) Customer service. All virtual currency kiosk operators shall offer, during the hours of operation of the virtual currency kiosks owned or operated by the virtual currency kiosk operator, live customer support by telephone from a toll-free telephone number prominently displayed at or on the virtual currency kiosk.
(6) Additional protections for elder adult. (a) All virtual currency kiosk operators shall designate a customer service representative that will identify and speak by telephone with an elder adult who is a new customer before the elder adult who is a new customer completes his or her first virtual currency transaction with the virtual currency kiosk operator.
(b) During the communication, which shall be recorded and retained by the virtual currency kiosk operator, the virtual currency kiosk operator shall:
(i) Reconfirm any attestations made by the new customer at a virtual currency kiosk owned or operated by the virtual currency kiosk operator;
(ii) Discuss the transaction; and
(iii) Discuss types of fraudulent schemes relating to virtual currency.
(c) The virtual currency kiosk operator's approval of the transaction shall be dependent upon the virtual currency kiosk operator's assessment of the communication.
(7) Chief compliance officer and staff. All virtual currency kiosk operators shall designate and employ a chief compliance officer who shall:
(a) Be qualified to coordinate and monitor a compliance program to ensure compliance with this section and all other applicable federal laws and regulations and state laws and rules;
(b) Not own more than twenty percent (20%) of the virtual currency kiosk operator that employs the officer; and
(c) Use full-time employees to fulfill the virtual currency kiosk operator's compliance responsibilities under federal laws and regulations and state laws and rules.
SECTION 10. Powers and functions of the commissioner. In addition to the powers and functions provided to the commissioner under the Money Transmission Modernization Act, Section 75-16-1 et seq., the commissioner may exercise the following powers and functions:
(a) Rules. The commissioner may adopt rules necessary to implement, administer and enforce this chapter.
(b) Seizure. Any virtual currency kiosk may be seized, at the operator's expense, if the operator fails to comply with the requirements of this chapter or the Money Transmission Modernization Act, Section 75-16-1 et seq.
(c) Enforcement by the Commissioner. Whenever the commissioner shall be of the opinion that any person is failing or omitting or is about to fail or omit to do anything required by the provisions of this chapter or the Money Transmission Modernization Act, Section 75-16-1 et seq., or by any order of the commissioner, or is doing anything or about to do anything, or permitting anything or about to permit anything to be done, contrary to or in violation of this chapter or the Money Transmission Modernization Act, Section 75-16-1 et seq., or of any order of the commissioner, the commissioner may proceed with appropriate action as provided under the Money Transmission Modernization Act, Section 75-16-1 et seq.
SECTION 11. Sections 1 through 10 of this act shall be codified as a new chapter within Title 75, Mississippi Code of 1972.
SECTION 12. (1) For the purposes of this section, "property" has the meaning ascribed in Section 97-45-1(u).
(2) All property used in the course of, intended for use in the course of, derived from, or realized through, conduct in violation of Chapters 19, 21, 45 or 49, Title 97, Mississippi Code of 1972, is subject to civil forfeiture to the state.
(3) Property subject to forfeiture may be seized by the Attorney General's Office or any law enforcement agency in the State of Mississippi upon process with a seizure warrant issued by a circuit court having jurisdiction over the property. Seizure without process may be made if:
(a) The seizure is incident to an arrest or a search under a search warrant; or
(b) The property subject to seizure has been the subject of a prior judgment in favor of the state in a criminal injunction or forfeiture proceeding based upon this section.
(4) A circuit court having jurisdiction over any property may issue a seizure warrant under this section upon proper oath or affirmation from the Attorney General's Office or any law enforcement agency in the State of Mississippi. The Attorney General's Office or any law enforcement agency in the State of Mississippi that is seeking a seizure warrant shall provide the following information to the judge:
(a) Probable cause to believe that the property was used or intended to be used in violation of this section;
(b) The name of the person or financial institution from whom the property is to be seized; and
(c) A detailed description of the property which is seized, including the value of the property.
(5) Any property seized under this section by the Attorney General's Office or any law enforcement agency in the State of Mississippi may be released to the owner of or lienholder on the property subject to the following requirements:
(a) The Attorney General's Office or any law enforcement agency in the State of Mississippi shall notify in writing, by United States certified mail, the owner of or lienholder on the property at the owner's or lienholder's last known address how the owner or lienholder may retrieve or obtain the property. In the event that the owner or lienholder does not claim the property within thirty (30) days from the date of the receipt of the notice, the property is declared forfeited to the State, shall be liquidated if the property is not money and shall be transferred to the State Treasurer for deposit and credit to the State General Fund.
(b) In the event the notice by mail is returned undelivered, the Attorney General's Office or any law enforcement agency in the State of Mississippi shall cause to be made further search and inquiry to ascertain the reputed owner's or lienholder's street and post office address. If a new or additional address is ascertained, the Attorney General's Office or law enforcement agency in the State of Mississippi shall again issue notice. If a new or additional address is not ascertained, or if notice is again returned undelivered, the Attorney General's Office or the law enforcement agency shall try to reach the owner or lienholder by any reasonable means and shall subsequently cause an affidavit to be prepared to that effect which shall specify the acts of search and inquiry made in the effort to ascertain the owner's or lienholder's address. The affidavit shall be retained by the Attorney General's Office or law enforcement agency for three (3) years.
(c) In the event of a seizure of property in which the person from whom the property was seized contests that the property seized is subject to forfeiture, the person from whom the property was seized shall file the notice with the circuit court having jurisdiction over the property who shall commence a forfeiture proceeding and hear evidence of whether the property is subject to forfeiture. The burden is on the state to prove that the property is subject to forfeiture. The standard of proof placed upon the State under the provisions of this section shall be by clear and convincing evidence.
(d) If it is found that the property is subject to forfeiture, the court shall forfeit the property to the Attorney General's Office or law enforcement agency. However, if proof at the hearing discloses that the property was wrongfully seized and is not subject to forfeiture, the property shall be returned to whom the property was seized. In addition, if proof at the hearing discloses that the interest of any bona fide lienholder, secured party, or other person holding an interest in the property in the nature of a security interest is greater than or equal to the present value of the property, the court shall order release to him or her. Property subject to forfeiture under this section encumbered by a bona fide security interest is subject to the interest of the secured party only if he or she neither had knowledge of nor consented to property being used in violation of this section.
(6) Property which has been stolen from its owner and recovered by the Attorney General's Office or law enforcement agency, if the owner can be identified, shall be returned to the owner after the preceding requirements are met. It is the intention of the Legislature through this act to support the victims of the crimes enumerated in this act and return stolen property to the rightful owner.
SECTION 13. This act shall take effect and be in force from and after July 1, 2026.
