On April 22, the governor of Maryland approved SB 305 (the “Act”) which enacts new regulations for the virtual currency kiosk industry in Maryland. The Act requires virtual currency kiosk operators to register their kiosks with the state commissioner of financial regulation before commencing operations, beginning Jan. 1, 2026.
The Act prohibits virtual currency kiosk operators from accepting or dispensing more than a specified amount of cash or credit in a single day for transactions with a single person ($2,000 for a new user, and $10,500 for an experienced user). Additionally, the Act prohibits operators from imposing a fee exceeding the greater of $5 or 15 percent of the transaction amount. The legislation also requires operators to provide prescribed warnings and disclosures.
The Act further empowers the Commissioner of Financial Regulation to investigate and enforce the Act. The Commissioner may impose a civil penalty of up to $1,000 for each knowing and willful violation. The Act takes effect on July 1.
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