This bill amends and adds sections to chapter 19.230 RCW to treat persons who own, operate, solicit, market, advertise, or otherwise facilitate virtual currency transaction kiosks as engaged in money transmission and therefore subject to money transmitter licensure and regulation. It amends existing definitions in the chapter, explicitly defines terms such as virtual currency, virtual currency transaction kiosk, and money transmission (including kiosk transactions), and sets the effective date as January 1, 2026. The bill imposes a regulatory framework and operational requirements for kiosk operators rather than creating a new criminal offense. Key changes include nontransferable money transmitter licenses; a requirement to surrender a license for each location within 15 days after ceasing money transmission in the state; a 30‑day written notice requirement to the director and to consumers before terminating kiosk business, plus detailed final accountings and remittance of held funds; mandatory on‑screen disclosures and consumer acknowledgement of specified material risks and a prominent irrevocability warning; detailed transaction receipts; KYC consistent with federal reporting; prevention of reuse of wallets and blocking of sanctioned or high‑risk wallets via third‑party blockchain analysis; live telephone support during kiosk hours; designation of a full‑time chief compliance officer (who may not own more than 20%); full‑time compliance staff; a required wind‑down plan and related records; and tangible net worth minimums calculated at $10,000 per $1,000,000 of companywide money transmission volume (minimum $10,000, maximum $3,000,000, with a $100,000 minimum if providing digital asset storage). The bill makes unlicensed operation of a virtual currency transaction kiosk a violation subject to penalties determined by the director of financial institutions, but the excerpt does not state specific penalty amounts or enforcement procedures. Some parts of the act are missing from the provided excerpts (including the remainder of certain amendments, complete penalty details, and any additional sections referenced but not included), so those provisions are uncertain from the material supplied.

If enacted, owners and operators of cash-to-crypto kiosks will be treated like money transmitters and face substantial new compliance and capital requirements starting January 1, 2026. Practically this means kiosk businesses will need state licenses, hire a full-time compliance officer and staff, buy or subscribe to third-party blockchain screening services, provide live phone support and prominent on-screen warnings and receipts, keep specific wind-down plans and accountings, and hold tangible net worth tied to their transaction volume (from $10,000 up to $3 million, or at least $100,000 if they store customer assets). Those steps will raise ongoing operating costs, increase administrative burdens, and make it harder to cease operations quickly because of 30-day notice, consumer notification, and remittance requirements; licenses cannot be transferred to new owners. The groups most affected are kiosk owners/operators and existing money transmitter licensees, who will face higher staffing, compliance and capital costs and stricter exit obligations, while consumers will see clearer disclosures, receipts, and formal wind-down protections. The director of financial institutions gains enforcement and rulemaking authority, including penalties for unlicensed operation, but the provided text does not specify penalty amounts or some implementation details, so how stringently requirements will be enforced and how certain rules will be applied remains uncertain.