A Bill for an Act
Page 1, Line 101Concerning the "Colorado Vending of Digital Assets Act".
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
The bill enacts the "Colorado Vending of Digital Assets Act", which requires an owner or operator of a virtual currency kiosk to:
- Provide certain disclosures to customers of the virtual currency kiosk;
- Provide each customer with a printed and an electronic receipt detailing the customer's virtual currency transaction; and
- Fully refund a customer's first virtual currency transaction if the virtual currency transaction is to a virtual currency wallet or exchange located outside of the United States and is determined by law enforcement to be fraudulent.
The bill establishes a daily transaction limit of $1,000 for a customer of a virtual currency kiosk.
The bill defines "virtual currency" as a type of digital unit that is used as a medium of exchange or a form of digitally stored value or that is incorporated into payment system technology. "Virtual currency kiosk" is defined as an electronic terminal acting as a mechanical agent of the owner or operator to enable the owner or operator to facilitate the exchange of virtual currency for other virtual currency or fiat currency.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add article 112 to title 11 as follows:
Page 2, Line 3ARTICLE 112
Colorado Vending of Digital Assets
Page 2, Line 411-112-101. Short title.The short title of this article 112 is the "Colorado Vending of Digital Assets Act".
Page 2, Line 511-112-102. Definitions.As used in this article 112, unless the context otherwise requires:
Page 2, Line 6(1) "Blockchain technology" has the meaning set forth in section 24-36-121.5 (2)(a).
Page 2, Line 7(2) (a) "New customer" means a customer transacting at
Page 2, Line 8a virtual currency kiosk in Colorado who has been a customer
Page 2, Line 9of an owner or operator of a virtual currency kiosk for less than seven days.
Page 2, Line 10(b) Seven days after a customer first transacts with an
Page 2, Line 11owner or operator of a virtual currency kiosk, the customer is
Page 2, Line 12considered an existing customer and is not subject to the new
Page 2, Line 13customer transaction limit described in section 11-112-103 (6).
Page 3, Line 1(3) "Transaction hash" means a unique identifier made up
Page 3, Line 2of a string of characters that acts as a record and provides
Page 3, Line 3proof that a transaction was verified and added to blockchain technology.
Page 3, Line 4(4) (a) "Virtual currency" means a type of digital unit
Page 3, Line 5that is used as a medium of exchange or a form of digitally
Page 3, Line 6stored value or that is incorporated into payment system technology.
Page 3, Line 7(b) "Virtual currency" includes digital units that:
(I) Have a centralized repository or administrator;
Page 3, Line 8(II) Are decentralized and have no centralized repository or administrator; or
Page 3, Line 9(III) May be created or obtained by computing or manufacturing effort.
Page 3, Line 10(c) "Virtual currency" does not include digital units that:
Page 3, Line 11(I) Are used solely within online gaming platforms, with no market or application outside the gaming platforms;
Page 3, Line 12(II) Are used exclusively as part of a consumer affinity or
Page 3, Line 13rewards program and can be applied as payment for purchases
Page 3, Line 14with the issuer or other designated merchants but cannot be converted into or redeemed for fiat currency; or
Page 3, Line 15(III) Are used as part of a consumer affinity or rewards
Page 3, Line 16program offered through an institution that is insured by the
Page 3, Line 17federal deposit insurance corporation or the national credit union administration.
Page 3, Line 18(5) "Virtual currency address" means an alphanumeric
Page 3, Line 19identifier representing a destination for a virtual currency transfer that is associated with a virtual currency wallet.
Page 4, Line 1(6) "Virtual currency kiosk" means an electronic
Page 4, Line 2terminal acting as a mechanical agent of the owner or operator
Page 4, Line 3to enable the owner or operator to facilitate the exchange of
Page 4, Line 4virtual currency for other virtual currency or fiat currency, including by:
Page 4, Line 5(a) Connecting to a separate virtual currency exchanger that performs the actual virtual currency transmission; or
Page 4, Line 6(b) Drawing upon the virtual currency in the possession of the owner or operator of the electronic terminal.
Page 4, Line 7(7) "Virtual currency wallet" means a software
Page 4, Line 8application or other mechanism providing a means for holding, storing, and transferring virtual currency.
Page 4, Line 911-112-103. Virtual currency kiosks - disclosures - receipts -
Page 4, Line 10daily limit - cancellation and refund. (1) Before entering into a
Page 4, Line 11virtual currency transaction for, on behalf of, or with a
Page 4, Line 12customer, the owner or operator of a virtual currency kiosk
Page 4, Line 13shall disclose to the customer in clear and conspicuous writing
Page 4, Line 14in the English language all material risks associated with
Page 4, Line 15virtual currency. The disclosures must be displayed on the
Page 4, Line 16screen of the virtual currency kiosk with the ability for a
Page 4, Line 17customer to acknowledge receipt of the disclosures. The disclosures must include at least the following statement:
Page 4, Line 18WARNING: THIS TECHNOLOGY CAN BE USED TO
Page 4, Line 19DEFRAUD YOU. IF YOU HAVE BEEN DIRECTED TO THIS
Page 4, Line 20MACHINE BY SOMEONE CLAIMING TO BE A GOVERNMENT
Page 4, Line 21AGENT, BILL COLLECTOR, LAW ENFORCEMENT OFFICER,
Page 5, Line 1OR ANYONE YOU DO NOT KNOW PERSONALLY, STOP THIS
Page 5, Line 2TRANSACTION IMMEDIATELY AND CONTACT YOUR FINANCIAL ADVISOR AND LOCAL LAW ENFORCEMENT.
Page 5, Line 4(2) When opening an account for a customer, the owner or
Page 5, Line 5operator of a virtual currency kiosk shall disclose to the
Page 5, Line 6customer in clear and conspicuous writing in the English
Page 5, Line 7language all relevant terms and conditions associated with the
Page 5, Line 8products, services, and activities of the owner or operator and virtual currency generally, including the following:
Page 5, Line 9(a) The customer's liability for unauthorized virtual currency transactions;
Page 5, Line 11(b) Under which circumstances the owner or operator
Page 5, Line 12will, absent a court or government order, disclose information concerning the customer's account to third parties;
Page 5, Line 13(c) The customer's right to receive periodic account statements and valuations from the owner or operator;
Page 5, Line 14(d) The customer's right to receive a receipt, a trade ticket, or other evidence of a virtual currency transaction; and
Page 5, Line 15(e) The customer's right to prior notice of a change in the rules or policies of the owner or operator.
Page 5, Line 16(3) Prior to a transaction in virtual currency for, on
Page 5, Line 17behalf of, or with a customer, the owner or operator of a
Page 5, Line 18virtual currency kiosk shall disclose to the customer in clear
Page 5, Line 19and conspicuous writing in the English language the terms and
Page 5, Line 20conditions of the virtual currency transaction, including the following:
Page 6, Line 1(a) The amount of the transaction;
Page 6, Line 2(b) The fees, expenses, and charges borne by the customer, including applicable exchange rates;
Page 6, Line 3(c) The type and nature of the transaction;
Page 6, Line 4(d) A warning that, once completed, the transaction is irreversible, if applicable;
Page 6, Line 5(e) The difference in the virtual currency's sale price versus the current market price; and
Page 6, Line 6(f) Other disclosures that are customarily given in connection with a virtual currency transaction.
Page 6, Line 7(4) The owner or operator of a virtual currency kiosk
Page 6, Line 8shall ensure that each customer acknowledges receipt of all disclosures required under this section.
Page 6, Line 9(5) Upon the completion of a virtual currency
Page 6, Line 10transaction, the owner or operator of a virtual currency kiosk
Page 6, Line 11shall provide to the customer an electronic receipt containing the following information:
Page 6, Line 12(a) The name of and contact information for the owner or
Page 6, Line 13operator, including a telephone number established by the owner or operator to answer questions and register complaints;
Page 6, Line 14(b) The type, value, date, and precise time of the virtual
Page 6, Line 15currency transaction, the transaction hash, and each virtual currency address;
Page 6, Line 16(c) The fee charged;
(d) The exchange rate, if applicable;
Page 6, Line 17(e) A statement of the liability of the owner or operator
Page 7, Line 1for nondelivery or delayed delivery of the currency for which the customer exchanged virtual currency; and
Page 7, Line 2(f) A statement of the refund policy of the owner or operator.
Page 7, Line 3(6) (a) For a new customer, the maximum daily transaction
Page 7, Line 4limit of a virtual currency kiosk is two thousand dollars per customer.
Page 7, Line 5(b) For an existing customer, the maximum daily
Page 7, Line 6transaction limit of a virtual currency kiosk is ten thousand five hundred dollars per customer.
Page 7, Line 7(7) (a) The owner or operator of a virtual currency kiosk
Page 7, Line 8shall, at the expense of the owner or operator, allow a
Page 7, Line 9customer to cancel and receive a full refund for a virtual currency transaction if:
Page 7, Line 10(I) The virtual currency transaction was the customer's first virtual currency transaction;
Page 7, Line 11(II) The virtual currency transaction was to a virtual
Page 7, Line 12currency wallet or exchange located outside of the United States; and
Page 7, Line 13(III) Within sixty days after the virtual currency
Page 7, Line 14transaction, the customer contacts the owner or operator of
Page 7, Line 15the virtual currency kiosk and a government or law
Page 7, Line 16enforcement entity regarding the fraudulent nature of the
Page 7, Line 17transaction and submits proof of the fraud, such as a police
Page 7, Line 18report or notarized declaration detailing the fraudulent nature of the virtual currency transaction.
Page 7, Line 19(b) If the conditions of subsection (7)(a) of this section are
Page 8, Line 1met, the owner or operator shall issue a full refund within
Page 8, Line 2seventy-two hours after being notified that the virtual currency transaction was fraudulent.
Page 8, Line 3SECTION 2. Act subject to petition - effective date. This act
Page 8, Line 4takes effect January 1, 2026; except that, if a referendum petition is filed
Page 8, Line 5pursuant to section 1 (3) of article V of the state constitution against this
Page 8, Line 6act or an item, section, or part of this act within the ninety-day period
Page 8, Line 7after final adjournment of the general assembly, then the act, item,
Page 8, Line 8section, or part will not take effect unless approved by the people at the
Page 8, Line 9general election to be held in November 2026 and, in such case, will take
Page 8, Line 10effect on the date of the official declaration of the vote thereon by the governor.