CS/CS/HB 1351 - Money Services Businesses Summary

• Adds "virtual currency" as a defined term and incorporates it throughout money services business regulations, including transmission, recordkeeping, and anti-money laundering requirements.

• Defines virtual currency as electronic/digital medium of exchange excluding gaming platform currency and consumer rewards programs, requiring money transmitters receiving virtual currency to hold equivalent amounts until transmission obligations are completed.

• Expands Financial Technology Sandbox exceptions to allow licensees to operate as money transmitters and payment instrument sellers during the sandbox period, with modified net worth and bond requirements determined by the office.

• Updates definitions of "electronic instrument," "monetary value," "money transmitter," "payment instrument," and "stored value" to clarify treatment of virtual currency and modernize payment technology references.

• Revises penalty provisions to include violations involving virtual currency with the same tiered felony classifications ($300-$20,000, $20,000-$100,000, $100,000+) and civil penalties as traditional currency violations; effective January 1, 2022.