Engrossed Senate Bill 5280 adds a new section to chapter 19.230 RCW creating specific regulatory requirements for licensees that operate virtual currency kiosks and amends RCW 19.230.150 to expand reporting duties. The new kiosk rules require licensees to report all licensee branch locations and authorized delegates to the nationwide licensing system at least 30 days before beginning business at those locations, maintain accurate records as prescribed by rule, and limit a kiosk customer's daily transfers to $2,000 (or equivalent). The bill caps fees for a single transaction or related series at the greater of $5 or 15% of the USD equivalent, requires clear pre-transaction disclosures (including licensee identity and contact, fraud warnings, and a statement about possible loss with no recourse), and mandates issuance of a receipt with specified transaction details and USD equivalents. It defines “virtual currency kiosk” as an electronic terminal that facilitates exchange of virtual currency for money or other virtual currency and expressly excludes consumer mobile phones and similar devices. The amendment to RCW 19.230.150 requires licensees to file material application changes with the director within 30 days, to report branch locations and authorized delegates to the nationwide licensing system within 30 days of a contractual agreement to provide money services in Washington, and to file a report with the director within one business day after the licensee has reason to know of certain triggering events (including specified bankruptcy or insolvency filings, licensing proceedings in other jurisdictions, bond cancellations or impairments, and certain felony charges or convictions). These are regulatory and procedural changes: they create new compliance duties, impose transaction and fee limits, and expand event-reporting obligations. The extracted text does not include definitions for “licensee,” “director,” or the nationwide licensing system, does not state effective dates or transitional provisions, and does not describe enforcement mechanisms or penalties for violations; the content of the referenced RCW 19.230.370 disclosures is also not provided.

If enacted, operators of virtual currency kiosks will face new daily limits on customer activity and caps on what they can charge, and they will need to change how they present information and document transactions: kiosks must limit transactions to $2,000 per customer per day, cap fees at the greater of $5 or 15% of the USD value, provide specified pre-transaction disclosures, and issue detailed receipts showing USD equivalents, transaction hashes, and customer addresses. Those changes will likely reduce some revenue per customer for higher-fee operators, require adjustments to customer-facing signage and receipt processes, and increase ongoing compliance work for licensees and their authorized delegates. Licensees will also have faster and more frequent reporting obligations that change operational timing and risk: branch locations and delegates must be reported to the nationwide licensing system at least 30 days before opening (and within 30 days of signing delegate contracts), material application changes must be filed within 30 days, and certain adverse events must be reported to the director within one business day. These requirements increase administrative burden and the risk of regulatory exposure if reports are late or incomplete; however, the bill text does not include the effective date, enforcement details, penalties, or full definitions of terms such as "licensee," "director," and the "nationwide licensing system," so how quickly and strictly these duties will be applied is unclear.