Amendment #485 to H5500

Virtual Currency Kiosks

Representatives Stanley of Waltham and Lipper-Garabedian of Melrose move to amend the bill by inserting after section 76 the following sections:

"SECTION XXXX. Section 1 of Chapter 169B of the General Laws is hereby amended by inserting after the words “in a foreign country.” the following:-

“Virtual currency”, a digital representation of value that can be digitally traded and functions as a medium of exchange, a unit of account, or a store of value. It is not issued or guaranteed by any central authority and does not have the legal status of currency or money. Virtual currency includes, but is not limited to, cryptocurrencies such as Bitcoin, Ethereum, and other similar digital assets.

"Virtual currency kiosk", a person acting on behalf of, or an electronic terminal acting as a mechanical agent of, the virtual currency kiosk operator to enable the virtual currency kiosk operator to facilitate the exchange of virtual currency for money, bank credit, or other virtual currency, including but not limited to by (1) connecting directly to a separate “virtual currency exchange" that performs the actual virtual currency transmission, or (2) drawing upon the virtual currency in the possession of the electronic terminal's operator.

“Virtual-currency kiosk operator", a person, entity, business, or organization that engages in virtual-currency business activity via a money transmission kiosk located in Massachusetts or a person, entity, business or organization that owns, operates, or manages a money transmission kiosk located in Massachusetts through which virtual-currency business activity is offered.

"Virtual currency kiosk transaction", 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 fiat currency or to sell virtual currency for fiat currency.

SECTION XXXX. Section 4 of said Chapter 169B is hereby amended by inserting after subsection (h) the following subsection:-

(g)(1) The Commonwealth of Massachusetts shall issue no license to operate a virtual currency kiosk in Massachusetts.

(2) A person, as defined in Section 1 of Chapter 93A of the Massachusetts General Laws, may not operate a virtual currency kiosk in Massachusetts.

(3) A person, as defined in Section 1 of Chapter 93A of the Massachusetts General Laws, may not facilitate or cause to be facilitated, a virtual currency kiosk transaction in Massachusetts.

(4) No virtual currency kiosk operator shall be allowed to conduct, facilitate, or cause to be facilitated, virtual currency kiosk transactions in Massachusetts.

(5) Violation of this subsection shall constitute an unfair or deceptive act or practice under Section 2 of Chapter 93A of the Massachusetts General Laws and will be subject to the same penalties imposed under said Chapter 93A.

Additional co-sponsor(s) added to Amendment #485 to H5500

Virtual Currency Kiosks