Florida Senate - 2026                          SENATOR AMENDMENT
       Bill No. CS for HB 505
       
       
       
       
       
       
                                Ì518110dÎ518110                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 1/AD/2R         .                                
             02/25/2026 05:22 PM       .                                
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       Senator Rouson moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (23) of section 560.103, Florida
    6  Statutes, is amended, and subsections (37), (38), and (39) are
    7  added to that section, to read:
    8         560.103 Definitions.—As used in this chapter, the term:
    9         (23) “Money services business” means any person located in
   10  or doing business in this state, from this state, or into this
   11  state from locations outside this state or country who acts as a
   12  payment instrument seller, foreign currency exchanger, check
   13  casher, or money transmitter, or virtual currency kiosk
   14  business.
   15         (37)“Virtual currency kiosk” means an electronic terminal
   16  that acts as a mechanical agent of the kiosk business, enabling
   17  the kiosk business to facilitate the exchange of virtual
   18  currency for fiat currency or other virtual currency for a
   19  customer.
   20         (38)“Virtual currency kiosk business” or “kiosk business”
   21  means a corporation, limited liability company, limited
   22  liability partnership, or foreign entity qualified to do
   23  business in this state which offers virtual currency kiosk
   24  services to a customer in this state.
   25         (39)“Virtual currency kiosk transaction” means the process
   26  by which a customer uses a virtual currency kiosk to exchange
   27  virtual currency for fiat currency or other virtual currency. A
   28  transaction begins at the point at which the customer is able to
   29  initiate a transaction after the customer is given the option to
   30  select the type of transaction or account and does not include
   31  any of the screens that display the required terms and
   32  conditions, disclaimers, or attestations.
   33         Section 2. Paragraph (b) of subsection (2) of section
   34  560.105, Florida Statutes, is amended to read:
   35         560.105 Supervisory powers; rulemaking.—
   36         (2) The commission may adopt rules pursuant to ss.
   37  120.536(1) and 120.54 to administer this chapter.
   38         (b) Rules adopted to regulate money services businesses,
   39  including deferred presentment providers and virtual currency
   40  kiosk businesses, must be responsive to changes in economic
   41  conditions, technology, and industry practices.
   42         Section 3. Paragraph (w) of subsection (1) of section
   43  560.114, Florida Statutes, is amended to read:
   44         560.114 Disciplinary actions; penalties.—
   45         (1) The following actions by a money services business,
   46  authorized vendor, or affiliated party constitute grounds for
   47  the issuance of a cease and desist order; the issuance of a
   48  removal order; the denial, suspension, or revocation of a
   49  license; or taking any other action within the authority of the
   50  office pursuant to this chapter:
   51         (w) Engaging or advertising engagement in the business of a
   52  money services business or deferred presentment provider without
   53  a license or registration, unless exempted from licensure or
   54  registration.
   55         Section 4. Section 560.125, Florida Statutes, is amended to
   56  read:
   57         560.125 Unlicensed or unregistered activity; penalties.—
   58         (1) A person may not engage in the business of a money
   59  services business or deferred presentment provider in this state
   60  unless the person is licensed or registered, or exempted from
   61  licensure or registration under this chapter. A deferred
   62  presentment transaction conducted by a person not authorized to
   63  conduct such transaction under this chapter is void, and the
   64  unauthorized person has no right to collect, receive, or retain
   65  any principal, interest, or charges relating to such
   66  transaction.
   67         (2) Only a money services business licensed under part II
   68  of this chapter may appoint an authorized vendor. Any person
   69  acting as a vendor for an unlicensed money transmitter or
   70  payment instrument issuer becomes the principal thereof, and no
   71  longer merely acts as a vendor, and is liable to the holder or
   72  remitter as a principal money transmitter or payment instrument
   73  seller.
   74         (3) Any person whose substantial interests are affected by
   75  a proceeding brought by the office pursuant to this chapter may,
   76  pursuant to s. 560.113, petition any court of competent
   77  jurisdiction to enjoin the person or activity that is the
   78  subject of the proceeding from violating any of the provisions
   79  of this section. For the purpose of this subsection, any money
   80  services business licensed under this chapter, any person
   81  residing in this state, and any person whose principal place of
   82  business is in this state are presumed to be substantially
   83  affected. In addition, the interests of a trade organization or
   84  association are deemed substantially affected if the interests
   85  of any of its members are affected.
   86         (4) The office may issue and serve upon any person who
   87  violates any of the provisions of this section a complaint
   88  seeking a cease and desist order or impose an administrative
   89  fine as provided in s. 560.114.
   90         (5) A person who violates this section, if the violation
   91  involves:
   92         (a) Currency, monetary value, payment instruments, or
   93  virtual currency of a value exceeding $300 but less than $20,000
   94  in any 12-month period, commits a felony of the third degree,
   95  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
   96         (b) Currency, monetary value, payment instruments, or
   97  virtual currency of a value totaling or exceeding $20,000 but
   98  less than $100,000 in any 12-month period, commits a felony of
   99  the second degree, punishable as provided in s. 775.082, s.
  100  775.083, or s. 775.084.
  101         (c) Currency, monetary value, payment instruments, or
  102  virtual currency of a value totaling or exceeding $100,000 in
  103  any 12-month period, commits a felony of the first degree,
  104  punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
  105         (6) In addition to the penalties authorized by s. 775.082,
  106  s. 775.083, or s. 775.084, a person who has been convicted of,
  107  or entered a plea of guilty or nolo contendere to, having
  108  violated this section may be sentenced to pay a fine of up to
  109  the greater of $250,000 or twice the value of the currency,
  110  monetary value, payment instruments, or virtual currency, except
  111  that on a second or subsequent violation of this section the
  112  fine may be up to the greater of $500,000 or quintuple the value
  113  of the currency, monetary value, payment instruments, or virtual
  114  currency.
  115         (7) A person who violates this section is also liable for a
  116  civil penalty of up to the greater of the value of the currency,
  117  monetary value, payment instruments, or virtual currency
  118  involved or $25,000.
  119         (8) In any prosecution brought pursuant to this section,
  120  the common law corpus delicti rule does not apply. The
  121  defendant’s confession or admission is admissible during trial
  122  without the state having to prove the corpus delicti if the
  123  court finds in a hearing conducted outside the presence of the
  124  jury that the defendant’s confession or admission is
  125  trustworthy. Before the court admits the defendant’s confession
  126  or admission, the state must prove by a preponderance of the
  127  evidence that there is sufficient corroborating evidence that
  128  tends to establish the trustworthiness of the statement by the
  129  defendant. Hearsay evidence is admissible during the
  130  presentation of evidence at the hearing. In making its
  131  determination, the court may consider all relevant corroborating
  132  evidence, including the defendant’s statements.
  133         Section 5. Part V of chapter 560, Florida Statutes,
  134  consisting of ss. 560.501-560.507, Florida Statutes, is created
  135  and entitled “Virtual Currency Kiosk Businesses.”
  136         Section 6. Section 560.501, Florida Statutes, is created to
  137  read:
  138         560.501Definitions.—For purposes of this part, the term:
  139         (1)“Blockchain” means a mathematically secured,
  140  chronological, decentralized, distributed, and digital ledger or
  141  database that consists of records of transactions that cannot be
  142  altered retroactively.
  143         (2)“Blockchain analytics” means the process of examining,
  144  monitoring, and gathering insights from the data and transaction
  145  patterns on a blockchain network. The primary aims of blockchain
  146  analytics are to understand and monitor the network’s health,
  147  track transaction flows, and identify potential security
  148  threats, including illicit activity, in order to extract
  149  actionable insights.
  150         (3) “Daily transaction limit” means a new customer being
  151  limited to no more than $2,000 in transactions per calendar day,
  152  or an existing customer being limited to no more than $10,000 in
  153  transactions per calendar day, whether through a single
  154  transaction or multiple transactions or whether through one or
  155  more virtual currency kiosks.
  156         (4)“Existing customer” means a customer who has transacted
  157  with a kiosk business on its virtual currency kiosk for 7 or
  158  more days.
  159         (5)“New customer” means a customer who has transacted with
  160  a kiosk business on its virtual currency kiosk for fewer than 7
  161  days.
  162         (6) “Registrant” means a corporation, limited liability
  163  company, limited liability partnership, or foreign entity
  164  qualified to do business in this state which offers virtual
  165  currency kiosk services and receives notice from the office that
  166  the agency has granted an application for registration pursuant
  167  to this part.
  168         (7)“Transaction hash” means a unique identifier consisting
  169  of a string of characters which provides a verifiable record
  170  that a transaction has been confirmed and added to the
  171  blockchain.
  172         (8)“Wallet” means hardware or software that enables a
  173  customer to store, use, send, receive, and spend virtual
  174  currency or store virtual currency private keys or passcodes
  175  enabling the same.
  176         Section 7. Effective March 1, 2027, section 560.502,
  177  Florida Statutes, is created to read:
  178         560.502Registration required; exemptions; penalties.—
  179         (1)Except as provided in subsection (2), a virtual
  180  currency kiosk business may not operate in this state without
  181  first registering, or renewing its registration, in accordance
  182  with s. 560.503. The office shall give written notice to each
  183  applicant that the office has granted or denied the application
  184  for registration.
  185         (2)A money transmitter that is licensed as a money
  186  services business pursuant to s. 560.141 and offers virtual
  187  currency kiosk services is exempt from registration as a virtual
  188  currency kiosk business but is subject to ss. 560.504, 560.505,
  189  560.506, and 560.507.
  190         (3)An entity, in the course of its business, may not act
  191  as an intermediary with the ability to unilaterally execute or
  192  indefinitely prevent a virtual currency kiosk transaction, or
  193  otherwise meet the definition of a money transmitter as defined
  194  in s. 560.103, without being licensed as a money services
  195  business pursuant to s. 560.141.
  196         (4)A virtual currency kiosk business registration issued
  197  under this part is not transferable or assignable.
  198         Section 8. Section 560.503, Florida Statutes, is created to
  199  read:
  200         560.503Registration applications.—
  201         (1)To apply to be registered as a virtual currency kiosk
  202  business under this part, the applicant must submit all of the
  203  following information to the office:
  204         (a)A completed registration application on forms
  205  prescribed by rule of the commission. The application must
  206  include the following information:
  207         1.The legal name, including any fictitious or trade name
  208  used by the applicant in the conduct of its business, and the
  209  physical and mailing addresses of the applicant.
  210         2.The date of the applicant’s formation and the state in
  211  which the applicant was formed, if applicable.
  212         3.The name, social security number, alien identification
  213  or taxpayer identification number, business and residence
  214  addresses, and employment history for the past 5 years for each
  215  control person as defined in s. 560.103.
  216         4.A description of the organizational structure of the
  217  applicant, including the identity of any parent or subsidiary of
  218  the applicant, and the disclosure of whether any parent or
  219  subsidiary is publicly traded.
  220         5.The name and mailing address of the registered agent in
  221  this state for service of process.
  222         6.The physical address of the location of each virtual
  223  currency kiosk through which the applicant proposes to conduct
  224  or is conducting business in this state.
  225         7. An attestation that the applicant has developed clearly
  226  documented policies, processes, and procedures regarding the use
  227  of blockchain analytics to prevent transfers to wallet addresses
  228  linked to known criminal activity, including the manner in which
  229  such blockchain analytics activity will integrate into its
  230  compliance controls, and that the applicant will maintain and
  231  comply with such blockchain analytics policies, processes, and
  232  procedures.
  233         8.Any other information as required by this chapter or
  234  commission rule.
  235         (b)Any information needed to resolve any deficiency found
  236  in the application within a time period prescribed by rule.
  237         (2) A virtual currency kiosk business operating in this
  238  state on or before January 1, 2027, must submit a registration
  239  application to the office within 30 days after that date.
  240         (3)A registrant shall report, on a form prescribed by rule
  241  of the commission, any change in the information contained in
  242  the initial application form or an amendment thereto within 30
  243  days after the change is effective.
  244         (4)A registrant must renew its registration annually on or
  245  before December 31 of the year preceding the expiration date of
  246  the registration. To renew such registration, the registrant
  247  must submit a renewal application that provides:
  248         (a)The information required in paragraph (1)(a) if there
  249  are changes in the application information, or an affidavit
  250  signed by the registrant that the information remains the same
  251  as the prior year’s information.
  252         (b)Upon request by the office, evidence that the
  253  registrant has been operating in compliance with ss. 560.504,
  254  560.505, 560.506, and 560.507. Such evidence may be prescribed
  255  by rule by the commission and may include, but need not be
  256  limited to, all of the following:
  257         1.Current disclosures presented to customers during the
  258  transaction process.
  259         2.Current use of blockchain analytics to prevent transfers
  260  to wallet addresses linked to known criminal activity.
  261         (5)A registrant that does not renew its registration by
  262  December 31 of the year preceding expiration shall be made
  263  inactive for 60 days. A registrant may not conduct business
  264  while its registration is inactive.
  265         (6)To renew an inactive registration, a registrant must,
  266  within 60 days after the registration becomes inactive, submit
  267  all of the following:
  268         (a)The information required in paragraph (1)(a) if there
  269  are changes in the application information, or an affidavit
  270  signed by the registrant that the information remains the same
  271  as the prior year’s information.
  272         (b)Evidence that the registrant was operating in
  273  compliance with ss. 560.504, 560.505, 560.506, and 560.507. Such
  274  evidence may be prescribed by rule by the commission and may
  275  include, but need not be limited to, all of the following:
  276         1.Current disclosures presented to customers during the
  277  transaction process.
  278         2. Reports that confirm compliance with daily transaction
  279  limits.
  280         3. Copies of receipts provided to customers.
  281         4. Records showing refunds provided to customers in
  282  required circumstances.
  283         5.Current use of blockchain analytics to prevent transfers
  284  to wallet addresses linked to known criminal activity.
  285  
  286  Any renewal registration made pursuant to this subsection
  287  becomes effective upon the date the office approves the
  288  application for registration. The office shall approve the
  289  application for renewal registration within a timeframe
  290  prescribed by rule.
  291         (7)Except as provided in s. 560.502(2), failure to submit
  292  an application to renew a virtual currency kiosk business’s
  293  registration within 60 days after the registration becomes
  294  inactive shall result in the registration becoming expired. If
  295  the registration is expired, a new application to register the
  296  virtual currency kiosk business pursuant to subsection (1) must
  297  be submitted to the office and a certification of registration
  298  must be issued by the office before the virtual currency kiosk
  299  business may conduct business in this state.
  300         (8)If a control person of a registrant or prospective
  301  registrant has engaged in any unlawful business practice, or
  302  been convicted or found guilty of, or pled guilty or nolo
  303  contendere to, regardless of adjudication, a crime involving
  304  dishonest dealing, fraud, acts of moral turpitude, or other acts
  305  that reflect an inability to engage lawfully in the business of
  306  a registered virtual currency kiosk business, the office may
  307  deny the prospective registrant’s initial registration
  308  application or the registrant’s renewal application.
  309         (9)The office shall deny the application of a virtual
  310  currency kiosk business that submits a renewal application and
  311  fails to provide evidence of compliance upon request pursuant to
  312  paragraph (4)(b) or as required in paragraph (6)(b).
  313         (10)Any false statement made by a virtual currency kiosk
  314  business in an application for registration under this section
  315  renders the registration void. A void registration may not be
  316  construed as creating a defense to any prosecution for violation
  317  of this chapter.
  318         Section 9. Section 560.504, Florida Statutes, is created to
  319  read:
  320         560.504Disclosures.—Before a customer initiates a virtual
  321  currency kiosk transaction, a virtual currency kiosk business
  322  shall ensure that its virtual currency kiosk:
  323         (1) Requires the customer to confirm whether the customer
  324  has conducted any transaction at another virtual currency kiosk
  325  on the same calendar day and the amount of any such transactions
  326  to determine how much, if any, the customer may transact at the
  327  virtual currency kiosk before reaching the appropriate daily
  328  transaction limit.
  329         (2) Clearly and conspicuously display the following
  330  disclosure to the customer on the screen:
  331  
  332         WARNING: FRAUD OFTEN STARTS WITH CONTACT FROM A
  333         STRANGER. IF YOU HAVE BEEN DIRECTED TO THIS MACHINE BY
  334         SOMEONE CLAIMING TO BE A GOVERNMENT AGENT, BILL
  335         COLLECTOR, LAW ENFORCEMENT OFFICER, OR ANYONE YOU DO
  336         NOT KNOW PERSONALLY, STOP THIS TRANSACTION IMMEDIATELY
  337         AND CONTACT YOUR FINANCIAL ADVISOR OR LOCAL LAW
  338         ENFORCEMENT.
  339  
  340         Section 10. Section 560.505, Florida Statutes, is created
  341  to read:
  342         560.505Transaction limits.—A virtual currency kiosk
  343  business may not permit a new customer to transact more than
  344  $2,000 per calendar day, whether through a single transaction or
  345  multiple transactions or whether through one or more virtual
  346  currency kiosks. A virtual currency kiosk business may not
  347  permit an existing customer to transact more than $10,000 per
  348  calendar day, whether through a single transaction or multiple
  349  transactions or whether through one or more virtual currency
  350  kiosks.
  351         Section 11. Section 560.506, Florida Statutes, is created
  352  to read:
  353         560.506Mandatory receipt.—Upon completion of a virtual
  354  currency transaction, the virtual currency kiosk business shall
  355  provide the customer with a choice of a physical or electronic
  356  receipt that includes all of the following:
  357         (1)The name and contact information of the virtual
  358  currency kiosk business, including an e-mail address and a toll
  359  free telephone number for such business.
  360         (2)The date, time, amount of the transaction in United
  361  States dollars, and type of transaction.
  362         (3)The transaction hash and each wallet used.
  363         (4)The total fee charged for the transaction.
  364         (5)The exchange rate, if applicable.
  365         (6)A statement of the virtual currency kiosk’s liability,
  366  if any, for nondelivery or delayed delivery of the virtual
  367  currency.
  368         (7)The refund policy of the virtual currency kiosk
  369  business.
  370         Section 12. Section 560.507, Florida Statutes, is created
  371  to read:
  372         560.507Mandatory refund.—A virtual currency kiosk business
  373  must issue a full refund within 72 hours to a customer for the
  374  customer’s first virtual currency transaction if all of the
  375  following conditions are met:
  376         (1)Within 60 days, the customer notifies the virtual
  377  currency kiosk business and a law enforcement or governmental
  378  agency regarding the fraudulent nature of the transaction.
  379         (2)The customer provides proof of the alleged fraud to the
  380  virtual currency kiosk business, such as a police report or a
  381  notarized affidavit.
  382         Section 13. Except as otherwise expressly provided in this
  383  act, this act shall take effect January 1, 2027.
  384  
  385  ================= T I T L E  A M E N D M E N T ================
  386  And the title is amended as follows:
  387         Delete everything before the enacting clause
  388  and insert:
  389                        A bill to be entitled                      
  390         An act relating to virtual currency kiosks; amending
  391         s. 560.103, F.S.; revising the definition of the term
  392         “money services business”; defining terms; amending s.
  393         560.105, F.S.; revising the requirements for certain
  394         rules adopted by the Financial Services Commission;
  395         amending s. 560.114, F.S.; revising the actions by
  396         money services businesses, authorized vendors, or
  397         affiliated parties which constitute grounds for
  398         disciplinary action; amending s. 560.125, F.S.;
  399         prohibiting persons from engaging in certain business
  400         unless they are registered or exempt from
  401         registration; creating part V of ch. 560, F.S.,
  402         entitled “Virtual Currency Kiosk Businesses”; creating
  403         s. 560.501, F.S.; defining terms; creating s. 560.502,
  404         F.S.; prohibiting a virtual currency kiosk business
  405         from operating in this state without registering or
  406         renewing its registration; requiring the Office of
  407         Financial Regulation to give a specified notice to
  408         applicants; specifying that certain money transmitters
  409         are exempt from registration as a virtual currency
  410         kiosk business but are subject to certain provisions;
  411         prohibiting certain entities from performing certain
  412         actions without being licensed as a money services
  413         business; specifying that virtual currency kiosk
  414         business registrations are not transferable or
  415         assignable; creating s. 560.503, F.S.; requiring
  416         applicants to submit certain information to the office
  417         to be registered as a virtual currency kiosk business;
  418         requiring certain virtual currency kiosk businesses to
  419         submit a registration application to the office by a
  420         specified date; requiring registrants to report a
  421         change in the information within a specified
  422         timeframe; requiring registrants to renew their
  423         registration annually; specifying requirements for a
  424         renewal application; requiring registrants to be made
  425         inactive for a specified timeframe under certain
  426         circumstances; prohibiting registrants from conducting
  427         business while registration is inactive; specifying
  428         requirements for registrants to renew an inactive
  429         registration; providing that a renewal registration
  430         becomes effective on a specified date; requiring the
  431         office to approve applications for renewal
  432         registration within a specified timeframe; providing
  433         that a registration expires under certain
  434         circumstances; providing requirements if a
  435         registration expires; authorizing the office to deny
  436         certain applications under certain circumstances;
  437         providing that certain false statements made by a
  438         virtual currency kiosk business render its
  439         registration void; providing construction; creating s.
  440         560.504, F.S.; requiring a virtual currency kiosk
  441         business to ensure that its virtual currency kiosk
  442         requires certain attestations from the customer and
  443         displays a certain disclosure; creating s. 560.505,
  444         F.S.; prohibiting a virtual currency kiosk business
  445         from permitting new or existing customers from
  446         transacting more than specified dollar amounts per
  447         calendar day; creating s. 560.506, F.S.; requiring a
  448         virtual currency kiosk business to provide a customer
  449         with a specified physical or electronic receipt upon
  450         completion of a virtual currency transaction; creating
  451         s. 560.507, F.S.; requiring a virtual currency kiosk
  452         business to issue a full refund under certain
  453         circumstances; providing effective dates.