HB 2798

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
(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
(3)  "Virtual currency" has the meaning assigned by
Section 12.001, Business & Commerce Code.
(4)  "Virtual currency kiosk" means an electronic
terminal operated by a virtual currency kiosk operator in this
state to enable the operator to facilitate the exchange of virtual
currency for money, bank credit, or other virtual currency,
(A)  connecting directly to a separate virtual
currency exchanger that performs the actual virtual currency
(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 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
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
(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
(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
(1)  is prominently displayed and in bold type;
(2)  must be acknowledged by the customer;
(3)  is  provided separately from the disclosures under
"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
(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
(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
(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
(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
(2)  the type, value, date, and precise time of the
transaction, the transaction hash, and each virtual currency
(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.  REFUNDS FOR NEW CUSTOMERS.  (a)  For purposes
of this section, a person is considered to be a new customer if less
than 72 hours has elapsed from the time the person first signed up
(b)  The operator of a virtual currency kiosk shall issue to
a new customer, on request, a refund for the total amount of all
virtual currency kiosk transactions made by the customer at the
kiosk during the new customer period described by Subsection (a) if
(1)  was fraudulently induced to enter into a virtual
currency kiosk transaction; and
(2)  not later than the 14th day after the date on which
the last virtual currency kiosk transaction was made during that
72-hour period, contacts the operator and an applicable
governmental or law enforcement agency to inform them of the
fraudulent nature of the transaction.
Sec. 161.008.  DAILY TRANSACTION LIMIT.  (a)  For purposes of
this section, "new customer" means a person described by Section
(b)  A maximum daily transaction limit of $2,000 is
established for each new customer of a virtual currency kiosk
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
(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.  This Act takes effect September 1, 2025.