South Dakota Enacts Licensing Framework For Virtual Currency Kiosks

On March 11, South Dakota Governor Larry Rhoden signed Senate Bill 98, a new law that brings virtual currency kiosk operators within the state’s money transmission licensing framework and imposes a series of anti-fraud and consumer-protection requirements.

The law applies to businesses operating virtual currency kiosks and to certain in-person payment arrangements used to complete virtual currency transactions. It also treats a “virtual currency transaction” as a form of money transmission and adds these kiosk-specific obligations on top of South Dakota’s existing money transmission licensing framework.

Key provisions include:

• Licensure and reporting requirements. Operators must hold a money transmission license, and licensees must provide expanded renewal and condition reports that include kiosk transaction volume, revenue, complaints, refund activity, kiosk locations, and suspicious activity report data.