New Kiosk Rules Take Effect Immediately

Alaska’s legislature passed measures to regulate cryptocurrency kiosks and virtual currency transmissions. The first law, Senate Bill 249, took effect on October 1, 2026, and applies specifically to Bitcoin ATMs and similar machines.

Under these provisions, kiosk operators must hold a money transmission license and obtain prior approval from the state Division of Banking and Securities before installing any unit. Users face a daily transaction limit of $1,000 and a 30-day ceiling of $10,000. Fees cannot exceed 10 percent of the transaction value.

Operators are required to maintain anti-fraud and anti-money laundering policies, submit quarterly and annual reports on kiosk operations and suspicious activity, and display scam warnings in both English and Spanish. The law also mandates dedicated lines for law enforcement contact at each location.

Enhanced Customer Refund Protections

A key focus of the new rules is safeguarding users from fraud. Any customer who becomes the victim of a scam can recover the full amount by notifying the operator within 90 days of the last transaction or the discovery of the issue. Supporting documentation, such as a police report or sworn statement, must be provided within 120 days of the initial contact.

Operators must apply blockchain analytics tools to identify and block wallets associated with known fraud. Any failure to comply is treated as a deceptive practice under Alaska’s consumer protection statutes, potentially leading to fines and, in severe cases, seizure of the kiosk and collected fees.

Comprehensive Rewrite of Money Transmission Law

More extensive changes will take effect on July 1, 2027, when Senate Bill 86 becomes fully operational. This legislation replaces Alaska’s 2007 money services framework with the Money Transmission Modernization Act, a model statute developed by the Conference of State Bank Supervisors.

Existing licensees will continue to operate under current licenses until they seek renewal or until July 1, 2028, whichever occurs later. The updated rules require clear disclosures regarding fees, exchange rates, error resolution procedures, and transfer timelines for virtual currency transactions. Licensees must also maintain sufficient reserves of each virtual currency to meet customer obligations and implement safeguards for assets held on behalf of clients.

Violations can result in penalties of up to $10,000 per day, with updated recordkeeping, reporting, and permissible investment guidelines.

State Aligns with Regional Trends

Alaska joins Delaware and Oklahoma in adopting elements of the model act this year. The separate handling of kiosk rules in SB 249 distinguishes the state’s approach, allowing immediate implementation of consumer protections for Bitcoin ATMs ahead of the broader transmission framework.