Crypto Law Profile
Rhode Island amended its currency transmission law to cover certain virtual currency control, exchange, transfer, and storage activity under the state money transmission framework, effective Jan. 1, 2020.
Rhode Island’s Currency Transmission Act Virtual Currency Amendments are the 2019 changes to the state’s licensed-activities and currency-transmission statutes enacted through H 5847 and companion S 753A. The law is effective as of January 1, 2020, and remains part of Rhode Island’s money-transmission framework as of June 9, 2026. It brings certain virtual currency activity within the state currency transmission licensing regime when a person maintains control of virtual currency or transactions in virtual currency on behalf of others.
The amendments replaced the older “sale of checks and electronic money transfers” framing for Chapter 19-14.3 with a broader “Currency Transmissions” structure. In the amended definition, currency transmission includes receiving money or monetary value for transmission or holding funds incidental to transmission, and the statutory text adds that this includes maintaining control of virtual currency or transactions in virtual currency on behalf of others.
The framework is administered through the Rhode Island Department of Business Regulation, Division of Banking. The bill text defines the department for Chapter 19-14.3 purposes and uses the Nationwide Multistate Licensing System for license and reciprocity functions. A person is treated as engaged in currency transmission in Rhode Island when the person enters into a transaction with someone physically located in or resident in Rhode Island at the time the transaction is initiated.
The amendments define several virtual currency concepts for licensing and consumer-facing obligations. “Control” includes the power to execute unilaterally or prevent indefinitely a virtual currency transaction. “Exchange” covers assuming control of virtual currency from or on behalf of a resident to sell, trade, or convert virtual currency for legal tender, bank credit, or another form of virtual currency. “Store” means maintaining control of virtual currency on behalf of a resident by a person other than the resident, while “transfer” includes crediting, moving, or relinquishing virtual currency after assuming control from or on behalf of a resident.
The amendments combine licensing with disclosure, custody, and compliance provisions. Required disclosures include information about fees, insurance or guarantee coverage, transfer irrevocability, liability for unauthorized or mistaken transfers, and the fact that virtual currency is not legal tender. The custody provision states that controlled virtual currency is held for the persons entitled to it, is not property of the licensee, and is not subject to claims of the licensee’s creditors.
The law also requires policies and procedures for information security, operational security, business continuity, disaster recovery, anti-fraud, anti-money-laundering, and related programs. Prohibited acts include failing to comply with the Bank Secrecy Act and FinCEN registration requirements, failing to safeguard identifying information, using false or misleading advertising, and engaging in unfair, deceptive, or fraudulent practices.
H 5847 completed legislative action when it was signed by the governor on July 15, 2019. The act itself provides an effective date of January 1, 2020. Later Rhode Island amendments, including 2025 provisions for virtual currency kiosk operators, added more detailed kiosk registration, anti-fraud, and transaction requirements to the same statutory chapter. This profile focuses on the baseline virtual currency money-transmission amendments rather than the later kiosk-specific overlay.
The law should be read as a state licensing and regulatory perimeter profile, not as legal, tax, investment, or trading advice. Businesses and readers should consult the current Rhode Island General Laws and regulator materials for the operative statutory text and any subsequent amendments.
The amended definition includes maintaining control of virtual currency or transactions in virtual currency on behalf of others.
Persons engaged in currency transmission in Rhode Island generally must be licensed unless a statutory exemption applies.
The chapter defines exchange, store, transfer, resident, control, and virtual currency business activity for Rhode Island transactions.
Licensees must provide resident disclosures and transaction confirmations covering transaction details, fees, and related information.
A licensee with control of customer virtual currency must maintain enough of each type to satisfy aggregate entitlements.
H 5847 was introduced and referred to House Corporations.
The House passed Sub A.
The Senate passed Sub A in concurrence.
H 5847 completed legislative action and was signed by the governor.
The act took effect on Jan. 1, 2020.
Rhode Island Department of Business Regulation, Rhode Island General Assembly
Virtual currency
This profile covers Rhode Island’s baseline 2019 virtual currency money-transmission amendments. Later virtual currency kiosk provisions amended the same chapter and should be profiled separately if needed.
