AN ACT relating to the regulation of digital asset business.

Establish Subtitle 13 of KRS Chapter 286 and create new sections thereof to regulate virtual currency kiosks; establish definitions; provide for enforcement by the commissioner of the Department of Financial Institutions; establish license requirements for virtual currency kiosks; require regulatory filings to be submitted to a nationwide licensing system registry; establish initial and renewal application processes and requirements, reporting, surety bond and tangible net worth, and change of control requirements for virtual currency kiosk operators;…

Administrative Regulations and Proceedings Banks and Financial Institutions Commerce Consumer Protection Digital Assets Effective Dates, Delayed Licensing Peace Officers and Law Enforcement Reports Mandated State Agencies

Introduced: February 12, 2026

Last action: April 13, 2026

(Acts Ch. 126)

Effective date: set within the act

This act specifies its own effective date(s) for some or all of its sections instead of following the standard 90-day rule (Ky. Constitution § 55) — see the act text for the exact dates.

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This bill creates a new set of rules for businesses that operate virtual currency kiosks in Kentucky, which are physical machines that allow people to buy or sell cryptocurrency. It sets up a licensing process overseen by the Department of Financial Institutions and establishes consumer protections, fraud safeguards, and rules about how these businesses must operate. The law is set to take effect in 2027, giving regulators time to put the required rules in place. Who it may affect: Kentuckians who use virtual currency kiosks, as well as businesses that own or operate those machines in the state.

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