Kansas Enacts Licensing for Virtual Currency Kiosks
Kansas Enacts Licensing for Virtual Currency Kiosks
Kansas Enacts Licensing for Virtual Currency Kiosks
The Kansas Office of the State Bank Commissioner (OSBC) announced the Virtual Currency Kiosk Consumer Protection Act (VCKCPA), enacted through HB 2591 and effective July 1, 2026. The Act is part of and supplemental to the Kansas Money Transmission Act and applies to operators of virtual currency kiosks (cryptocurrency ATMs) located in the state.
Kiosk operators are deemed engaged in money transmission and must obtain a Kansas money transmitter license (K.S.A. 2025 Supp. 9-564). Operators unlicensed as of July 1, 2026 must apply within 60 days and may continue operating while the OSBC reviews a complete application; operators whose applications are denied must cease operations.
Key Updates:
- Identity verification: Operators must collect a government-issued ID plus the user's name, date of birth, phone number, address, and email before accepting payment for each transaction.
- Disclosures and receipts: Required risk disclosures, on-screen fraud warnings acknowledged by the user, and transaction receipts itemizing fees, exchange rates, and any spread fee.
- Fee cap: Charges may not exceed the greater of $5 or 18% of the transmission amount; spreads count as indirect charges.
- Transaction limits and refunds: A $1,000 cap on initial transactions, tiered limits during the first 14 days, a 72-hour holding period, and full refund rights for new customers and fraud victims.
- Quarterly reporting: Kiosk location reports are due within 45 days of quarter end; details are available on the OSBC's VCKCPA announcement page.
FS Vector monitors ongoing state guidance for virtual currency and money transmission activity to help ensure compliance with the latest requirements. Contact FS Vector for assistance navigating Kansas virtual currency kiosk licensing and compliance requirements.