HB 1438 Summary

• Expands definitions in the Uniform Money Services Act including "control," "key individual," "passive investor," "tangible net worth," and "virtual currency" to clarify regulatory scope and oversight requirements.

• Adds virtual currency exchange and administration to exclusions from money transmission licensing if regulated under federal securities, commodity, or electronic fund transfer laws.

• Modifies applicant background check requirements to require fingerprints, credit reports, and investigative background reports for individuals in control or seeking control of money services licensees, with special provisions for those residing outside the U.S.

• Changes surety bond and net worth requirements from volume-based calculations to fixed minimum amounts ($100,000 or 3% of assets) and authorizes use of irrevocable letters of credit as permissible investments.

• Establishes new consumer protections including timely transmission requirements (§ 23-55-610), refund procedures within 10 days (§ 23-55-611), and detailed receipt requirements in English and applicable languages (§ 23-55-612).