PA HB883

Virtual currency lenders must notify the Pennsylvania Department of Banking and Securities at least 90 days before conducting business in the Commonwealth, providing company information, parent/subsidiary details, and compliance statements

Lenders must hold collateral equal to a minimum of 100% of the value of virtual currency exchanged in money or cash equivalents, to be used to reimburse clients in cases of default, fraud, or technical failure

Client funds and digital assets must be segregated from the lender's own money and digital assets

Violations carry escalating fines: $5,000 for the first offense, $10,000 for the second, and $20,000 for third and subsequent violations, with potential prohibition from operating in Pennsylvania after a third violation

The act takes effect 60 days after enactment, with the Department of Banking and Securities responsible for promulgating implementing regulations