An Act to amend and reenact § 59.1-200 of the Code of Virginia and to amend the Code of Virginia by adding in Subtitle III of Title 6.2 a chapter numbered 22.2, consisting of sections numbered 6.2-2239 through 6.2-2266, relating to financial institutions and services; virtual currency kiosk operators; license required; penalties.
HB665 creates a new regulatory framework in Virginia for virtual currency kiosk operators, often known as cryptocurrency ATMs or Bitcoin kiosks. The bill adds a new chapter to Title 6.2 establishing definitions for terms such as virtual currency, virtual currency kiosk, user, new user, wallet, and blockchain analytics, and it sets baseline operating standards for businesses that facilitate the exchange of virtual currency for money, bank credit, or other virtual currency.
At the center of the bill is a licensing requirement: no person may operate, manage, or allow a virtual currency kiosk in Virginia without first obtaining a license from the Commission. Transactions conducted in violation of that requirement are void, and no one may collect or retain charges associated with an unlawful transaction. The bill also makes clear that its standards are minimum standards only, preserving the ability of local governments to impose stricter rules or additional protections on kiosk operators.
The bill amends § 59.1-200 and adds a new Chapter 22.2 to Title 6.2, thereby expanding Virginia’s financial-services regulatory code to specifically cover virtual currency kiosk operators. Its practical effect is to bring cryptocurrency kiosk businesses under state licensing and enforcement authority, with potential penalties and transaction invalidation for noncompliance, while also allowing localities to adopt more stringent requirements. The measure affects kiosk operators, owners, managers, third-party hosts, and users of these kiosks, and it likely increases compliance obligations related to licensing, transaction handling, and consumer protection.
The available record shows the bill was enacted as Chapter 654 and approved on April 13, 2026, indicating it ultimately had sufficient support to become law. Because no committee transcripts or recorded votes are provided, there is no direct evidence of debate or opposition in the supplied materials. The enacted status suggests the bill was viewed favorably enough by the legislature and governor to advance without any documented controversy in the record provided.
The main policy tension implied by the bill is between statewide regulation and local control, since the bill expressly preserves authority for counties and municipalities to impose stricter rules. Another likely point of contention is the licensing mandate itself, which can be seen as a consumer-protection and anti-fraud measure by supporters, but as a compliance burden by operators of virtual currency kiosks. The voiding of transactions made without a license is a particularly strong enforcement tool and could be viewed as controversial by businesses because it exposes them to loss of fees and invalidation of transactions.