Assembly Bill A10246

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10246
 
                           I N  A S S E M B L Y
 
                             February 12, 2026
                                ___________
 
 Introduced by M. of A. LEE -- read once and referred to the Committee on
   Banks
 
 AN  ACT  to amend the financial services law, in relation to prohibiting
   unlicensed activities of virtual currency businesses
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  The  financial  services  law  is amended by adding a new
 section 408-b to read as follows:
   § 408-B. UNLICENSED VIRTUAL CURRENCY BUSINESSES. (A) FOR THE  PURPOSES
 OF  THIS  SECTION,  A "PROHIBITED UNLICENSED VIRTUAL CURRENCY ACT" SHALL
 MEAN ENGAGING IN AN ACTIVITY IN  THIS  STATE  FOR  WHICH  A  LICENSE  IS
 REQUIRED BY THE DEPARTMENT, WITHOUT SUCH LICENSE.
   (B) IN ADDITION TO ANY CIVIL OR CRIMINAL LIABILITY PROVIDED BY LAW:
   (1) ANY PERSON WHO ENGAGES IN A PROHIBITED UNLICENSED VIRTUAL CURRENCY
 ACT SHALL BE GUILTY OF A CLASS A MISDEMEANOR;
   (2) ANY PERSON WHO ENGAGES IN A PROHIBITED UNLICENSED VIRTUAL CURRENCY
 ACT,  AND  IN  THE  COURSE OF THAT VIOLATION ENGAGES IN VIRTUAL CURRENCY
 BUSINESS ACTIVITY, AS DEFINED BY THE DEPARTMENT, THAT RECEIVES FOR TRAN-
 SMISSION, TRANSMITS, STORES, HOLDS, MAINTAINS CUSTODY OR CONTROL,  BUYS,
 SELLS,  PROVIDES  EXCHANGE  SERVICES,  ADMINISTERS,  OR  ISSUES  VIRTUAL
 CURRENCY: (A) WITH A TOTAL VALUE OF TWENTY-FIVE THOUSAND DOLLARS OR MORE
 DURING A PERIOD OF THIRTY DAYS OR LESS, OR A TOTAL OF TWO HUNDRED  FIFTY
 THOUSAND  DOLLARS  OR  MORE  DURING A PERIOD OF ONE YEAR OR LESS; OR (B)
 KNOWING SAID VIRTUAL  CURRENCY  TO  BE  THE  PROCEEDS  OF  ANY  CRIMINAL
 CONDUCT, SHALL BE GUILTY OF A CLASS E FELONY;
   (3) ANY PERSON WHO ENGAGES IN A PROHIBITED UNLICENSED VIRTUAL CURRENCY
 ACT,  AND  IN  THE  COURSE OF THAT VIOLATION ENGAGES IN VIRTUAL CURRENCY
 BUSINESS ACTIVITY, AS DEFINED BY THE DEPARTMENT, THAT RECEIVES FOR TRAN-
 SMISSION, TRANSMITS, STORES, HOLDS, MAINTAINS CUSTODY OR CONTROL,  BUYS,
 SELLS,  PROVIDES  EXCHANGE  SERVICES,  ADMINISTERS,  OR  ISSUES  VIRTUAL
 CURRENCY WITH A TOTAL VALUE OF FIFTY THOUSAND DOLLARS OR MORE  DURING  A
 PERIOD  OF  THIRTY  DAYS  OR  LESS,  OR A TOTAL OF FIVE HUNDRED THOUSAND
 DOLLARS OR MORE DURING A PERIOD OF ONE YEAR OR LESS, SHALL BE GUILTY  OF
 A CLASS D FELONY; AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14435-01-6
 A. 10246                            2

   (4) ANY PERSON WHO ENGAGES IN A PROHIBITED UNLICENSED VIRTUAL CURRENCY
 ACT,  AND  IN  THE  COURSE OF THAT VIOLATION ENGAGES IN VIRTUAL CURRENCY
 BUSINESS ACTIVITY, AS DEFINED BY THE DEPARTMENT, THAT RECEIVES FOR TRAN-
 SMISSION, TRANSMITS, STORES, HOLDS, MAINTAINS CUSTODY OR CONTROL,  BUYS,
 SELLS,  PROVIDES  EXCHANGE  SERVICES,  ADMINISTERS,  OR  ISSUES  VIRTUAL
 CURRENCY WITH A TOTAL VALUE OF ONE  HUNDRED  THOUSAND  DOLLARS  OR  MORE
 DURING  A  PERIOD  OF  THIRTY  DAYS  OR  LESS, OR A TOTAL OF ONE MILLION
 DOLLARS OR MORE DURING A PERIOD OF ONE YEAR OR LESS, SHALL BE GUILTY  OF
 A CLASS C FELONY.
   § 2. This act shall take effect immediately.