Bill Text: TX HB2798 | 2025-2026 | 89th Legislature | Engrossed

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Bill Title: Relating to disclosures and other requirements concerning virtual currency kiosk transactions; authorizing a fee.

Sponsorship: Bipartisan Bill

Status: (Engrossed - Dead) 2025-04-29 - Referred to Business & Commerce [HB2798 Detail]

Download: Texas-2025-HB2798-Engrossed.html

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By: Plesa, Capriglione, Garcia of Dallas, H.B. No. 2798
Lambert, et al.

A BILL TO BE ENTITLED
AN ACT
relating to disclosures and other requirements concerning virtual
currency kiosk transactions; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 3, Finance Code, is amended by
adding Chapter 161 to read as follows:
CHAPTER 161. VIRTUAL CURRENCY KIOSKS
Sec. 161.001. DEFINITIONS. In this chapter:
(1) "Digital asset service provider" has the meaning
assigned by Section 160.001.
(2) "Transaction hash" means a unique identifier
consisting of a string of characters that act as a record of a
transaction and provide proof that the transaction was verified and
added to the blockchain.
(3) "Virtual currency" has the meaning assigned by
Section 12.001, Business & Commerce Code.
(4) "Virtual currency kiosk" means an electronic
terminal in this state operated by a virtual currency kiosk
operator to enable the operator to facilitate the exchange of
virtual currency for money, bank credit, or other virtual currency,
including by:
(A) connecting directly to a separate virtual
currency exchanger that performs the actual virtual currency
transmission; or
(B) drawing on the virtual currency in the
possession of the electronic terminal's operator.
(5) "Virtual currency kiosk operator" or "operator"
means a person, including a digital asset service provider, that
operates a virtual currency kiosk.
(6) "Virtual currency kiosk transaction" means a
transaction conducted or performed, wholly or partly, by electronic
means using a virtual currency kiosk. The term includes a
transaction made at a virtual currency kiosk to purchase virtual
currency with fiat currency or to sell virtual currency for fiat
currency.
Sec. 161.002. APPLICABILITY. This chapter applies to a
virtual currency kiosk operator that operates a virtual currency
kiosk in this state.
Sec. 161.003. DISCLOSURES ON MATERIAL RISKS. (a) Before
entering into an initial virtual currency kiosk transaction for, on
behalf of, or with a customer and subject to Subsection (c), a
virtual currency kiosk operator shall clearly and conspicuously
disclose, in plain, easy to read language, at least the following
material risks generally associated with virtual currency:
(1) virtual currency is not legal tender and is not
backed or insured by the government;
(2) accounts and value balances of virtual currency
are not subject to Federal Deposit Insurance Corporation, National
Credit Union Administration, or Securities Investor Protection
Corporation protections;
(3) some virtual currency transactions are considered
to be made only when recorded on a public ledger, which may not be
the date or time when the transaction is initiated;
(4) a virtual currency's value may be derived from the
continued willingness of market participants to exchange fiat
currency for the virtual currency, which may result in the
permanent and total loss of the virtual currency's value if the
market for that virtual currency disappears;
(5) a customer who accepts a virtual currency as
payment at the time of the transaction is not required to accept the
currency as payment and may decline to accept the currency as
payment in a future transaction;
(6) the volatility and unpredictability of the price
of virtual currency relative to fiat currency may result in a
significant loss in value over a short period;
(7) the nature of virtual currency means that any
technological difficulties experienced by a virtual currency kiosk
operator may prevent access to or use of their customers' virtual
currency; and
(8) any bond maintained by the virtual currency kiosk
operator for the benefit of the operator's customers may not cover
all of the losses incurred by those customers.
(b) In addition to the disclosures under Subsection (a), a
virtual currency kiosk operator shall provide a written disclosure
that:
(1) is prominently displayed and in bold type;
(2) must be acknowledged by the customer;
(3) is provided separately from the disclosures under
Subsection (a); and
(4) states:
"WARNING: LOSSES DUE TO FRAUDULENT OR ACCIDENTAL
TRANSACTIONS ARE NOT RECOVERABLE AND TRANSACTIONS IN VIRTUAL
CURRENCY ARE IRREVERSIBLE. VIRTUAL CURRENCY TRANSACTIONS MAY BE
USED BY SCAMMERS IMPERSONATING LOVED ONES, THREATENING JAIL TIME,
OR INSISTING YOU WITHDRAW MONEY FROM YOUR BANK ACCOUNT TO PURCHASE
VIRTUAL CURRENCY."
(c) The disclosures under Subsection (a) must be displayed
on the screen of the virtual currency kiosk with the ability for a
customer to acknowledge the receipt of the disclosures.
Sec. 161.004. TRANSACTION-RELATED DISCLOSURES. (a) A
virtual currency kiosk operator shall disclose all relevant terms
generally associated with virtual currency and with the products,
services, and activities of the operator, including:
(1) the customer's liability for unauthorized virtual
currency transactions;
(2) the customer's right to:
(A) stop payment of a virtual currency transfer
and the procedure to stop payment;
(B) receive a receipt, trade ticket, or other
evidence of a transaction at the time of the transaction; and
(C) receive prior notice of a change in the
operator's rules or policies;
(3) the circumstances under which the operator,
without a court or government order, is authorized to disclose a
customer's account information to third parties; and
(4) other disclosures customarily provided in
connection with the opening of a customer's account.
(b) Before a virtual currency transaction is entered into
for, on behalf of, or with a customer, a virtual currency kiosk
operator shall clearly and conspicuously disclose the terms of the
transaction. The disclosure must:
(1) be in plain, easy to read language; and
(2) address at least:
(A) the amount of the transaction;
(B) any transaction fees, expenses, or charges,
including applicable exchange rates;
(C) the type and nature of the transaction;
(D) a warning that once a transaction is
completed, the transaction may not be reversed;
(E) the daily virtual currency kiosk transaction
limit for new customers prescribed by Section 161.008;
(F) the difference in the virtual currency's sale
price compared to the current market price; and
(G) any other disclosures customarily provided
in connection with a virtual currency kiosk transaction.
Sec. 161.005. ACKNOWLEDGEMENT OF DISCLOSURES. Before
completing a transaction, a virtual currency kiosk operator shall
ensure that each customer who engages in a virtual currency kiosk
transaction using the operator's kiosk acknowledges receipt of the
disclosures required under Sections 161.003 and 161.004 by
obtaining confirmation of consent.
Sec. 161.006. RECEIPT REQUIRED. After a transaction is
completed, the virtual currency kiosk operator shall provide the
customer with a physical receipt, or an electronic receipt sent by
e-mail or text message, that contains:
(1) the operator's name and contact information,
including a telephone number to answer questions and register
complaints;
(2) the type, value, date, and precise time of the
transaction, the transaction hash, and each virtual currency
address;
(3) the fees charged;
(4) the exchange rate;
(5) a statement of the operator's liability for
nondelivery or delayed delivery;
(6) a statement of the operator's refund policy; and
(7) any additional information the banking
commissioner of Texas may require.
Sec. 161.007. COMPLAINT AND REPORT; FEE REFUND. (a) Not
later than the 14th day after the date that a customer enters into a
virtual currency kiosk transaction, if the customer believes the
transaction was fraudulently induced, the customer may file a
complaint with:
(1) the operator of the virtual currency kiosk on
which the transaction was completed; and
(2) an appropriate law enforcement agency or state
agency.
(b) A law enforcement agency or state agency that receives a
complaint under Subsection (a) shall:
(1) investigate the complaint; and
(2) provide a report to the customer and the operator
of the virtual currency kiosk stating whether or not the virtual
currency kiosk transaction was fraudulently induced.
(c) If the report provided under Subsection (b) states that
a virtual currency kiosk transaction was fraudulently induced, the
operator of the virtual currency kiosk shall issue to the customer a
refund for any fees charged by the operator in association with the
transaction.
Sec. 161.008. DAILY TRANSACTION LIMIT. (a) For purposes of
this section, "new customer" means a person described by Section
161.007(a).
(b) A maximum daily transaction limit of $2,000 is
established for each new customer of a virtual currency kiosk
located in this state.
Sec. 161.009. ADMINISTRATION OF CHAPTER; FEES. (a) The
Texas Department of Banking shall administer and enforce this
chapter. The banking commissioner of Texas may charge a virtual
currency kiosk operator a reasonable fee to cover the costs of
implementing this chapter.
(b) The banking commissioner may investigate a virtual
currency kiosk operator to determine compliance with this chapter
in the same manner as allowed under Subchapter B, Chapter 152,
including examination of the records of the operator.
Sec. 161.010. RULES. The Finance Commission of Texas may
adopt rules necessary to administer and enforce this chapter.
SECTION 2. A virtual currency kiosk operator is not
required to comply with Chapter 161, Finance Code, as added by this
Act, until September 1, 2026.
SECTION 3. This Act takes effect September 1, 2025.