AK SB86

Replaces Alaska's existing money transmission laws with the Uniform Money Transmission Modernization Act, updating licensing requirements and allowing the Department of Commerce, Community, and Economic Development to coordinate with other states through a nationwide multistate licensing system

Establishes a comprehensive regulatory framework for virtual currency business activity, requiring licensing for exchanging, transferring, or storing virtual currency, with mandatory disclosures to consumers about fees, insurance coverage, transaction irrevocability, and the fact that virtual currency is not government-backed

Increases civil penalties from $1,000 to $10,000 per day for violations, requires licensees to maintain surety bonds up to $1,000,000 based on transaction volume, and mandates minimum tangible net worth requirements starting at $35,000 or 3% of total assets

Expands exemptions from licensing to include payroll processing services, employees acting within their scope of employment, agents of exempt banks, insurance companies conducting ancillary money transmission, and persons with virtual currency activity under $5,000 annually

Takes effect July 1, 2026, with existing licensees allowed to continue operating until they renew or through July 1, 2027, and authorizes the department to begin adopting implementing regulations immediately