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Virtual Currency

V.S.A. tit. 8, ch. 79, subch. 10
in effect

8 V.S.A. § 2571 Definitions

2571. Definitions As used in this subchapter: (1) “Blockchain” has the same meaning as in 12 V.S.A. § 1913(a)(1). (2) “Blockchain analytics” means a software service that uses data from various virtual currencies and their applicable blockchains to provide a risk rating specific to digital wallet addresses from users of virtual-currency kiosks. (3) “Digital wallet” means hardware or software that enables individuals to store and use virtual currency. (4) “Digital wallet address” means an alphanumeric identifier representing a destination on a blockchain for a virtual currency transfer that is associated with a digital wallet. (5) “Existing customer” means a consumer who: (A) is engaging in a transaction at a virtual-currency kiosk in Vermont; and (B) whose first transaction with the virtual-currency kiosk operator occurred more than 30 days prior. (6) “New customer” means a consumer who: (A) is engaging in a transaction at a virtual-currency kiosk in Vermont; and (B) whose first transaction with the virtual-currency kiosk operator occurred not more than 30 days prior. Added 2023, No. 110 (Adj. Sess.), § 48, eff. July 1, 2024; amended 2025, No. 23, § 22, eff. July 1, 2025; 2025, No. 142 (Adj. Sess.), § 14, eff. July 1, 2026.

8 V.S.A. § 2572 Exemptions

2572. Exemptions (a) This subchapter shall not apply to the exchange or transfer of virtual currency, or to virtual-currency storage or virtual-currency administration, by a person to the extent that the Securities Exchange Act of 1934, 15 U.S.C. §§ 78a–78oo, as may be amended, or the Commodities Exchange Act of 1936, 7 U.S.C. §§ 1–27f, as may be amended, govern such activity and the person is conducting such activity in compliance with all applicable requirements of such laws and any regulations promulgated thereunder. (b) This subchapter shall not apply to activity by: (1) a person that: (A) provides only data storage or security services for a business engaged in virtual-currency business activity and does not otherwise engage in virtual-currency business activity on behalf of another person; or (B) provides only to a person otherwise exempt from this chapter virtual currency as one or more enterprise solutions used solely among each other and has no agreement or relationship with a person that is an end-user of virtual currency; (2) a person using virtual currency, including creating, investing, buying or selling, or obtaining virtual currency as payment for the purchase or sale of goods or services, solely on its own behalf for personal, family, or household purposes or for academic purposes; (3) a person whose virtual-currency business activity with or on behalf of persons is reasonably expected to be valued, in the aggregate, on an annual basis at $5,000.00 or less, measured by the U.S. dollar equivalent of virtual currency; (4) a securities intermediary, as defined in 9A V.S.A. § 8-102, or a commodity intermediary, as defined in 9A V.S.A. § 9-102, that: (A) does not engage in the ordinary course of business in virtual-currency business activity with or on behalf of a person in addition to maintaining securities accounts or commodities accounts and is regulated as a securities intermediary or commodity intermediary under federal law, law of this State other than this chapter, or law of another state; and (B) affords a person protections comparable to those set forth in section 2575 of this subchapter; (5) a person that is engaged in testing products or services with the person’s own funds. (c) The Commissioner may determine that other persons or classes of persons, given facts particular to the person or class, are exempt from this chapter, when the person or class is covered by requirements imposed under federal law on business engaged in money services and the Commissioner determines that no additional requirements are necessary to ensure the protection of the public. Added 2023, No. 110 (Adj. Sess.), § 48, eff. July 1, 2024.

8 V.S.A. § 2573 Conditions precedent to engaging in virtual-currency business activity

2573. Conditions precedent to engaging in virtual-currency business activity (a) A person shall not engage in virtual-currency business activity, or hold itself out as being able to engage in virtual-currency business activity, with or on behalf of another person unless the person is: (1) licensed under subchapter 2 of this chapter to engage in virtual-currency business activity; (2) an authorized delegate of a person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity if such money services are within the scope of authority conferred by a written contract between the authorized delegate and the licensee; (3) exempt pursuant to section 2572 of this subchapter and engages in no licensable activity outside the scope of such exemption; or (4) exempt pursuant to section 2504 of this chapter and does not engage in money services outside the scope of such exemption. (b) [Repealed.] (c) It is prohibited for a person to facilitate the provision of unlicensed virtual-currency business activity by another person that is required to be licensed under this subchapter, when the first person or the first person’s authorized agent receives notice from a regulatory, law enforcement, or similar governmental authority, or knows from its normal monitoring and compliance systems, or consciously avoids knowing that the unlicensed person is in violation of this chapter. (d) All provisions of this chapter, and any rule adopted under this chapter, that apply to a person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity shall apply equally to any person required to hold a license pursuant to subsection (a) of this section that does not hold one. Nothing herein shall be interpreted to permit any such unlicensed person to engage in virtual-currency business activity or hold itself out as being able to engage in any virtual-currency business activity without a license. Added 2023, No. 110 (Adj. Sess.), § 48, eff. July 1, 2024; amended 2025, No. 142 (Adj. Sess.), § 13, eff. July 1, 2026.

8 V.S.A. § 2574 Required disclosures

2574. Required disclosures (a) Licensee disclosures, generally. A person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity shall provide the disclosures required by this section and any additional disclosure the Commissioner determines reasonably necessary for the protection of the public. (1) A disclosure required by this section must be made separately from any other information provided by the licensee and in a clear and conspicuous manner in a record the person may keep. (2) The Commissioner may waive one or more requirements in subsections (b)–(d) of this section and approve alternative disclosures proposed by a licensee if the Commissioner determines that the alternative disclosure is more appropriate for the virtual-currency business activity and provides the same or equivalent information and protection to the public. (b) Licensee disclosures prior to business activity. Before engaging in virtual-currency business activity with a person, a licensee shall disclose, to the extent applicable to the virtual-currency business activity the licensee will undertake with the person: (1) a schedule of fees and charges the licensee may assess, the manner by which fees and charges will be calculated if they are not set in advance and disclosed, and the timing of the fees and charges, including general disclosure regarding mark-ups and mark-downs on purchases, sales, or exchanges of virtual currency in which the licensee or any affiliate thereof is acting in a principal capacity; (2) whether the product or service provided by the licensee is covered by: (A) a form of insurance or is otherwise guaranteed against loss by an agency of the United States: (i) up to the full U.S. dollar equivalent of virtual currency purchased from the licensee or for control of virtual currency by the licensee as of the date of the placement or purchase, including the maximum amount provided by insurance under the Federal Deposit Insurance Corporation or otherwise available from the Securities Investor Protection Corporation; or (ii) if not provided at the full U.S. dollar equivalent of virtual currency purchased from the licensee or for control of virtual currency by the licensee, the maximum amount of coverage for each person expressed in the U.S. dollar equivalent of the virtual currency; or (B) private insurance against theft or loss, including cyber theft or theft by other means; (3) the irrevocability of a transfer or exchange and any exception to irrevocability; (4) a description of: (A) liability for an unauthorized, mistaken, or accidental transfer or exchange; (B) the person’s responsibility to provide notice to the licensee of the transfer or exchange; (C) the basis for any recovery by the person from the licensee; (D) general error-resolution rights applicable to the transfer or exchange; and (E) the method for the person to update the person’s contact information with the licensee; (5) that the date or time when the transfer or exchange is made and the person’s account is debited may differ from the date or time when the person initiates the instruction to make the transfer or exchange; (6) whether the person has a right to stop a preauthorized payment or revoke authorization for a transfer and the procedure to initiate a stop-payment order or revoke authorization for a subsequent transfer; (7) the person’s right to receive a receipt, trade ticket, or other evidence of the transfer or exchange; (8) the person’s right to at least 30 days’ prior notice of a change in the licensee’s fee schedule, other terms and conditions of operating its virtual-currency business activity with the person, and the policies applicable to the person’s account; and (9) that virtual currency is not money. (c) Disclosures prior to each virtual-currency transaction. In connection with any transaction where the licensee or any affiliate thereof is acting in a principal capacity in a sale of virtual currency to, or purchase of virtual currency from, a customer, then immediately prior to effecting such a purchase or sale transaction with or on behalf of a customer, a licensee shall prominently disclose and shall require the customer to acknowledge and confirm the terms and conditions of the virtual-currency transaction, which shall include the following: Disclosures prior to each virtual-currency transaction. In connection with any transaction where the licensee or any affiliate thereof is acting in a principal capacity in a sale of virtual currency to, or purchase of virtual currency from, a customer, then immediately prior to effecting such a purchase or sale transaction with or on behalf of a customer, a licensee shall prominently disclose and shall require the customer to acknowledge and confirm the terms and conditions of the virtual-currency transaction, which shall include the following: (1) the type, value, date, precise time, and amount of the transaction; and (2) the consideration charged for the transaction, including: (A) any charge, fee, commission, or other consideration for any trade, exchange, conversion, or transfer involving virtual currency; and (B) any difference between the price paid by the customer for any virtual currency and the prevailing market value of such virtual currency, if any (d) Licensee receipt requirements. Except as otherwise provided in subsection (e) of this section, at the conclusion of a virtual-currency transaction with or on behalf of a person, a licensee shall provide the person with a receipt that contains: (1) the name and contact information of the licensee, including information the person may need to ask a question or file a complaint; (2) the type of virtual currency, quantity of virtual currency, date, precise time, and amount of the transaction expressed in U.S. currency; (3) the consideration charged for the transaction, including: (A) any charge, fee, commission, or other consideration for any trade, exchange, conversion, or transfer involving virtual currency; or (B) the amount of any difference between the price paid by the customer for any virtual currency and the prevailing market value of such virtual currency, if any; and (4) any other information required pursuant to section 2562 of this title. (e) Licensee daily confirmation. If a licensee discloses that it will provide a daily confirmation in the initial disclosure under subsection (b) of this section, the licensee may elect to provide a single, daily confirmation for all transactions with or on behalf of a person on that day instead of a per-transaction confirmation. Added 2023, No. 110 (Adj. Sess.), § 48, eff. July 1, 2024; amended 2025, No. 23, § 23, eff. July 1, 2025; 2025, No. 142 (Adj. Sess.), § 14a, eff. July 1, 2026.

8 V.S.A. § 2575 Property interests and entitlements to virtual currency

2575. Property interests and entitlements to virtual currency (a) A person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity that has control of virtual currency or provides virtual-currency storage to, for, or on behalf of one or more persons shall maintain custody and control of virtual currency in an identical type and amount of virtual currency sufficient to satisfy the aggregate entitlements of such persons to such identical types and amounts of virtual currency. (b) For the purposes of subsection (a) of this section, units of virtual currency are only of an identical type and amount if such units are fungible in all respects, including having the same issuer and being identical in amount, market capitalization, circulating supply, name, U.S. dollar equivalent of virtual currency, liquidity, use, rights, restrictions, functionality, permissions, and any other material attribute. (c) If a licensee violates subsection (a) of this section, the property interests of the persons in the virtual currency are pro rata property interests in the type of virtual currency to which the persons are entitled, without regard to the time the persons became entitled to the virtual currency or the licensee obtained control of the virtual currency. (d) The virtual currency referred to in this section is and shall be: (1) held for the persons entitled to the virtual currency; (2) not property of the licensee or any person required to be licensed under this chapter; (3) not subject to any claims, liens, or encumbrances of creditors of the licensee or any person required to be licensed under this chapter; and (4) deemed to be a permissible investment under this chapter to the extent that there is an outstanding money transmission obligation owed to a customer in such type and amount of virtual currency. (e) A person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity is prohibited from selling, transferring, assigning, lending, hypothecating, pledging, or otherwise using or encumbering virtual currency stored, held, controlled, or maintained by, or under the custody or control of, such licensee on behalf of another person except for the sale, transfer of ownership, or assignment of such assets at the direction of such other person. (f) A person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity shall not directly or indirectly use or engage any other person, including any virtual-currency control-services vendor, to store or hold custody or control of any virtual currency for or on behalf of any customer in this State, unless such other person is licensed under subchapter 2 of this chapter to engage in virtual-currency business activity, a financial institution or credit union that is exempt from licensing under subdivision 2504(7) of this chapter, or a qualified custodian approved by the Commissioner by rule or order to hold virtual currency on behalf of customers in this State. (g) Virtual currency held in violation of subsection (f) of this section shall not be deemed to be a permissible investment for purposes of satisfying a licensee’s obligations under subsection 2542(a) of this chapter, but shall be deemed to be a permissible investment for purposes of subsections 2542(c)–(e) of this chapter. (h) The Commissioner may by rule or order adopt additional consumer protections concerning virtual currency, including: (1) rules regarding the segregation of virtual currencies and accounts held for or on behalf of customers from a licensee’s own virtual currencies and assets; (2) rules related to the custody, storage, security, ownership of, and title to permissible investments and customer virtual currencies and assets; (3) rules related to the use of virtual-currency control service vendors or other custodians to hold custody or control of virtual currency; (4) rules related to audit requirements for customer assets; (5) rules setting standards, limits, prohibitions, disclosure requirements, and procedures regarding the types of virtual currencies and related services, activities, and transactions that licensees may offer in this State as may be necessary or appropriate for the protection of consumers or compliance with the terms of this chapter; (6) rules requiring compliance with specific provisions of the Uniform Commercial Code; and (7) any rules as may be necessary or appropriate for the protection of consumers or necessary or appropriate to effectuate the purposes of this chapter. Added 2023, No. 110 (Adj. Sess.), § 48, eff. July 1, 2024.

8 V.S.A. § 2576 Additional requirements and clarifications for virtual-currency business activities

2576. Additional requirements and clarifications for virtual-currency business activities (a) To ensure adequate consumer protection, the Commissioner may adopt by rule provisions that specify limitations to and the method by which a person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity may include virtual currency and virtual currency-denominated assets in the calculation of its net worth pursuant to section 2540 of this chapter. (b) In addition to the records required to be maintained by sections 2119 and 2546 of this title and any other records the Commissioner requires pursuant to this chapter or rule, a person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity shall maintain, for all virtual-currency business activity with or on behalf of a person, for at least five years after the date of the activity, a record of: (1) each transaction of the licensee with or on behalf of the person or for the licensee’s account in this state, including: (A) the identity of the person; (B) the form of the transaction; (C) the amount, date, and payment instructions given by the person; and (D) the account number, name, and U.S. Postal Service address of the person, and, to the extent feasible, other parties to the transaction; (2) the aggregate number of transactions and aggregate value of transactions by the licensee with or on behalf of the person and for the licensee’s account in this State, expressed in U.S. dollar equivalent of virtual currency for the previous 12 calendar months; (3) each transaction in which the licensee exchanges one form of virtual currency for money or another form of virtual currency with or on behalf of the person; (4) a general ledger posted at least monthly that lists all assets, liabilities, capital, income, and expenses of the licensee; (5) each business-call report the licensee is required to create or provide to the Department or NMLS; (6) bank statements and bank reconciliation records for the licensee and the name, account number, and U.S. Postal Service address of each bank the licensee uses in the conduct of its virtual-currency business activity with or on behalf of the person; (7) a report of any dispute with the person; and (8) a report of any virtual-currency business activity transaction with or on behalf of a person that the licensee was unable to complete. (c) It is unlawful for a person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity, or any other person, in connection with the offer to sell, the offer to purchase, the sale, the purchase of a virtual currency, or in connection with any virtual-currency business activity or transaction in virtual currency, directly or indirectly: (1) to employ a device, scheme, or artifice to defraud; (2) to make an untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or (3) to engage in an act, practice, or course of business that operates or would operate as a fraud or deceit upon another person. (d) Persons licensed under subchapter 2 of this chapter to engage in virtual-currency business activity shall comply at all times with all applicable federal and state laws, rules, and regulations, including the following laws, as may be amended: the Securities Act of 1933, 15 U.S.C. §§ 77a–77aa, the Securities Exchange Act of 1934, 15 U.S.C. §§ 78a–78oo, the Commodities Exchange Act of 1936, 7 U.S.C. §§ 1–27f, and the Vermont Securities Act, 9 V.S.A. chapter 150. Added 2023, No. 110 (Adj. Sess.), § 48, eff. July 1, 2024.

8 V.S.A. § 2577 Virtual-currency kiosk prohibition

2577. Virtual-currency kiosk prohibition (a) Prohibition of virtual currency kiosks. (1) No person shall locate, operate, or otherwise make available for use, or allow a third party to locate, operate, or otherwise make available for use, a virtual currency kiosk in Vermont. (2) No person shall offer, facilitate, or engage in, in whole or in part, directly or indirectly, virtual-currency business activity via a money transmission kiosk in Vermont. (b) Registration expiration and refunds. With respect to any virtual-currency kiosk in operation in Vermont prior to July 1, 2026: (1) Expiration and termination. Any registration of a virtual-currency kiosk shall expire and terminate on July 1, 2026. (2) Full refund for new customers. The virtual-currency kiosk operator shall provide a full refund to a customer who was fraudulently induced to engage in a virtual-currency kiosk transaction, provided the fraudulently induced transaction occurred while the customer was a new customer and further provided the customer contacts the virtual-currency kiosk operator and a law enforcement or government agency to inform the operator and the agency of the fraudulent nature of the transaction within 90 days after the customer’s last virtual-currency transaction with the virtual-currency kiosk operator. The refund shall include any fees charged in association with the fraudulently induced transaction. (3) Fee refund for existing customers. The virtual-currency kiosk operator shall provide a fee refund to an existing customer who has been fraudulently induced to engage in a virtual-currency kiosk transaction, provided the customer contacts the virtual-currency kiosk operator and a law enforcement or government agency to inform the operator and the agency of the fraudulent nature of the transaction within 90 days after the last fraudulently induced transaction. The refund shall include all fees charged in association with the fraudulently induced transaction. (4) Records retention. Until at least July 1, 2031, or a later date required by the Commissioner, the virtual-currency kiosk operator shall maintain, and make available to the Commissioner upon request, all records that the virtual-currency kiosk operator was required to maintain prior to July 1, 2026. (c) Violations. For any virtual-currency kiosk transaction occurring after July 1, 2026, in violation of this section, the virtual-currency kiosk operator shall provide a full refund to the customer upon request of the customer or the Commissioner. The refund shall include any fees charged in association with the transaction. Added 2023, No. 110 (Adj. Sess.), § 48, eff. July 1, 2024; amended 2025, No. 23, § 24, eff. July 1, 2025; 2025, No. 142 (Adj. Sess.), § 14b, eff. July 1, 2026.
Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/08/079Fetched: 10/21/2026

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