HB 86 - Money Transmission Modernization Act

• Modernizes Alaska's money transmission licensing framework by replacing outdated laws with model language aligned with the Uniform Money Transmission Act, including provisions for virtual currency business activities

• Establishes streamlined licensure requirements with 120-day application processing timelines, multistate licensing coordination through the Nationwide Multistate Licensing System and Registry, and standardized supervision procedures across states

• Adds comprehensive virtual currency provisions requiring licensees to maintain disclosures about fees, insurance coverage, transaction irrevocability, error resolution, and confirmation that virtual currency is not government-backed money

• Creates new regulatory mechanisms including net worth requirements ($35,000 minimum or percentage of assets), surety bond requirements (up to $1,000,000 based on daily liability), and permissible investment standards with letters of credit options

• Repeals outdated currency exchange licensing provisions and existing money services license approvals, allowing current licensees to operate until renewal under new rules or July 1, 2025, whichever is later; effective January 1, 2024