Kansas Governor Laura Kelly signed House Bill 2591 (“HB 2591” or the “Bill”) into law on April 9, 2026, enacting two significant consumer protection measures: the Virtual Currency Kiosk Consumer Protection Act and a new framework enabling financial institutions to report and respond to suspected elder financial exploitation. The virtual currency kiosk provisions take effect July 1, 2026.
Virtual Currency Kiosk Consumer Protection Act
The Bill amends the Kansas Money Transmission Act to bring virtual currency kiosk transactions within the definition of money transmission, requiring all kiosk operators to hold a money transmitter license. Operators that are not yet licensed as of July 1, 2026, will have sixty (60) days to submit a license application.
The law caps fees at the greater of $5 or eighteen percent (18%) of the transaction amount and establishes a tiered transaction limit structure. New customers are limited to $1,000 for their initial transaction, up to $1,000 per day, and $10,000 total during the first fourteen (14) days of transactions, and up to $10,500 per day thereafter. Transactions conducted within the 14-day window of a customer’s first transaction are subject to a 72-hour hold on funds. During that window, new customers may request a full refund for any reason. Customers who report a fraudulent transaction within thirty (30) calendar days are entitled to a refund as well, with the amount depending on when the transaction occurred.
Before a customer’s initial transaction, operators must provide material risk disclosures, including that virtual currency is not legal tender, that transactions may be irreversible, and that the value of virtual currency is subject to potential total loss. A consumer fraud warning must be displayed on screen and acknowledged by the customer before each transaction. Receipts must be provided upon completion, and kiosks installed after July 1, 2026, must offer paper receipts. Where a transaction is conducted in Spanish, required disclosures must also be provided in Spanish.
Operators must also use blockchain analytics software to screen for digital wallets associated with fraudulent activity, verify customer identity through government-issued identification, designate a full-time consumer protection officer, and maintain written anti-fraud and board-approved enhanced due diligence policies. Kiosk locations must be reported quarterly, and operators are subject to periodic reporting to the state commissioner.
Elder Financial Exploitation Reporting
The Bill also authorizes financial institutions, defined to include banks, savings banks, savings and loan associations, trust companies, credit unions, and similar state- or federally chartered institutions, to report suspected financial exploitation of adult account holders to designated agencies, including law enforcement or the Kansas Department for Children and Families.
Institutions may notify a trusted contact designated by the account holder and place a temporary hold on a suspected transaction for up to ten (10) business days, extendable for up to thirty (30) additional business days at the request of an investigating agency. Temporary holds may not be based solely on the account holder’s age, the size of the transaction, or a refusal to provide information. Financial institutions acting in good faith under these provisions are protected from civil and criminal liability.
What This Means for Industry
For virtual currency kiosk operators, HB 2591 represents one of the most comprehensive state-level regulatory frameworks in the country. Kansas joins Kentucky in opting for a detailed licensing and consumer protection framework rather than an outright prohibition – a notable contrast to Minnesota, which enacted a full ban on virtual currency kiosks earlier this month, following similar prohibitions in Indiana and Tennessee. As states continue to diverge in their approaches, operators active across multiple jurisdictions should pay close attention to their state-specific compliance obligations. For those operating in Kansas, the immediate priority is assessing licensing status, updating consumer-facing disclosures, implementing required compliance policies, and designating a consumer protection officer well ahead of the July 1, 2026, effective date. Financial institutions should also review their procedures for identifying and responding to suspected elder financial exploitation in light of the new reporting authorization and associated liability protections.