CT HB05320

Requires persons engaging in virtual currency business activities to register with the Connecticut Department of Banking, effective October 1, 2022, with exemptions for qualified trust companies.

Registration must include business information, organizational charts, management structure, business plans, and a commissioner-set registration fee submitted under oath to the Department of Banking.

Registrants must maintain written compliance policies covering anti-fraud, anti-money laundering, cyber security, privacy and information security, reviewed and approved by the board of directors.

Registrants must disclose material risks to customers in clear writing before transactions, including that virtual currency is not legal tender, not FDIC-insured, transactions may be irreversible, and value may become zero.

Registrants must establish customer complaint procedures, provide transaction receipts with specified information, maintain advertising materials for seven years, and are subject to civil penalties up to $5,000 per violation enforced by the commissioner.