Criminal Use of Cryptocurrency Amendments

Virtual currency kiosk operators must now obtain a Money Transmitter license and register with the Department of Commerce, whereas the previous version only required compliance with consumer protection rules.

The requirement for local law enforcement agencies to report cryptocurrency investigation data to the Commission on Criminal and Juvenile Justice was removed.

Enforcement authority was transferred from the Division of Consumer Protection to the commissioner and attorney general, with the ability to suspend licenses and impose fines up to $1,000 per violation (capped at $30,000 annually).

The sunset review provision for the cryptocurrency investigation reporting requirements was removed, and the effective date for the Division of Consumer Protection changes was adjusted from May 6, 2026, to July 1, 2026.

Several code sections were renumbered (e.g., from Title 13 to Title 7) and administrative rulemaking references were updated to reflect the new Department of Commerce jurisdiction.

Virtual currency kiosk operators must provide both physical and digital receipts in the customer's chosen language, unless the customer opts out of one form.

Kiosks must display prominent fraud prevention warnings in English and Spanish stating that transactions are irreversible and no government agency will request payment via the kiosk.

Operators must maintain detailed records of all transactions, including transaction hashes and wallet addresses, for a period specified by the Division of Consumer Protection.

New transaction limits cap daily purchases at $2,000 for the first three days and $5,000 thereafter to prevent money laundering.

Local law enforcement agencies must report quarterly statistics on cryptocurrency cases, including the number of investigations opened, traces conducted, and assets recovered.

Law enforcement agencies must ensure at least one officer completes specialized cryptocurrency investigation training every three years.

The Division of Consumer Protection is granted authority to impose administrative fines of up to $2,500 per violation and pursue civil actions against non-compliant operators.

New definitions were added for terms such as 'virtual currency kiosk,' 'transaction hash,' and 'cryptocurrency investigation' to clarify regulatory scope.

Most provisions take effect on May 6, 2026, with specific changes to the Consumer Protection Division's functions taking effect on July 1, 2026.

Virtual currency kiosks must now provide both a physical and digital receipt to customers, rather than just one form of receipt.

Fraud reporting information on receipts must now include both state and local law enforcement agencies.

The Division of Securities is now required to report cryptocurrency investigation data to the Commission on Criminal and Juvenile Justice alongside local law enforcement agencies.

Minor formatting and line number adjustments were made to align the text with the House Committee's markup.

Enforcement authority for virtual currency kiosk regulations was transferred from the Attorney General to the Division of Consumer Protection.

Virtual currency kiosk operators are now required to submit annual reports listing all kiosk locations and notify the Division within 30 days of installing or removing a kiosk.

Kiosk operators must maintain complete and accurate records of all transactions and customer information for a period specified by the Division.

Cryptocurrency investigation reporting requirements were expanded to include reports from the Division of Securities in addition to local law enforcement agencies.

The effective date for the Division of Consumer Protection's administration of the Virtual Currency Kiosk Regulation chapter was changed from May 6, 2026, to July 1, 2026.

The bill text was updated to reflect the correct Senate Sponsor name (Brady Brammer) and adjusted the list of Utah Code sections affected to match the new chapter numbering (Title 13-82 instead of 7-29).