TX SB1705

Requires virtual currency kiosk operators to register each kiosk with the Texas Department of Banking and obtain approval before activation, with quarterly location reports due within 45 days after each quarter ends

Imposes a $3,000 daily transaction limit per customer and requires a 72-hour hold on transactions by first-time customers, with mandatory ID scanning and wallet registration for recipients

Caps total fees and charges at the greater of $5 or 12% of the transaction value, including any difference between customer price and prevailing market value

Mandates prominent fraud warnings on kiosk screens and physical signs stating law enforcement does not accept virtual currency payments, with required disclosures about risks including lack of FDIC/NCUA/SIPC protections and transaction irreversibility

Requires operators to use blockchain analytics software to prevent transactions to wallets known for fraudulent activity, employ a full-time compliance officer who owns no more than 20% of the company, and provide live customer service 8 a.m. to 10 p.m. Monday through Friday

Authorizes administrative penalties up to $5,000 per violation or per day for continuing violations, with the banking commissioner empowered to issue cease and desist orders and revoke registrations