§1391. Examinations
A.Each person required to be licensed under this Chapter shall maintain in his office
the books, records, and accounts of its virtual currency business activities as the
commissioner may reasonably require in order to determine whether the person is complying
with the provisions of this Chapter and the rules and regulations promulgated under the
provisions of this Chapter. Required records may be maintained in any electronic format
consistent with the person's ordinary business practices unless the person receives specific
written instructions from the commissioner to the contrary. The books, records, and accounts
shall be maintained separate and apart from any other business in which the person is
involved and shall be kept at the location in the state at which the vi
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§1391. Examinations
A. Each person required to be licensed under this Chapter shall maintain in his office
the books, records, and accounts of its virtual currency business activities as the
commissioner may reasonably require in order to determine whether the person is complying
with the provisions of this Chapter and the rules and regulations promulgated under the
provisions of this Chapter. Required records may be maintained in any electronic format
consistent with the person's ordinary business practices unless the person receives specific
written instructions from the commissioner to the contrary. The books, records, and accounts
shall be maintained separate and apart from any other business in which the person is
involved and shall be kept at the location in the state at which the virtual currency business
activities occurred or at the person's principal office unless otherwise permitted in writing
by the commissioner. Records shall be made available for review or examination at a
nonresidential location approved by the commissioner.
B. If the books and records of any person described in this Section are located
outside of the state, he shall make them available to the commissioner at a location within
this state convenient to the commissioner or pay the reasonable and necessary expenses for
the commissioner or his representative to examine them at the place where they are
maintained. The commissioner may designate representatives, including comparable
officials of the state in which the records are located, to inspect the records on his behalf.
C. The licensee shall pay the reasonable cost of the examination as the commissioner
shall prescribe by rule. If the examination fee is not paid within thirty days of its assessment,
the person examined shall be subject to an administrative penalty.
D. The commissioner may do any of the following:
(1) Conduct on-site examination or investigation, participate in a joint or concurrent
examination or investigation with another state or federal agency or agencies, or examine or
investigate the books, records, and accounts used in the business of every licensee.
(2) Accept and rely upon an examination report or investigative report of any other
state or federal agency.
E. Nothing in Subsection D of this Section shall preclude the commissioner from
conducting an examination or investigation in accordance with applicable provisions of this
Chapter, including but not limited to any of the following:
(1) Participating in a joint examination or investigation.
(2) Participating in a concurrent examination or investigation.
(3) Accepting results of an examination or investigation report conducted by any
state or federal agency.
F. A joint report or concurrent report accepted by the commissioner pursuant to this
Section may be accepted as an official report of the office for purposes of this Chapter.
G.(1) To efficiently and effectively enforce the provisions of this Chapter and to
minimize regulatory burdens, the commissioner may participate in a multistate examination
and investigation process for licensees that hold licenses in this state and other states.
(2) As a participant in any mulitistate examination or investigation, the
commissioner may, to the extent provided by law, do all of the following:
(a) Cooperate, coordinate, and share information with other state regulators of virtual
currency business activities.
(b) Enter into written cooperation, coordination, or information-sharing contracts or
agreements with organizations made up of other state governmental regulators of virtual
currency business activities.
(c) Cooperate, coordinate, and share information with organizations made up of other
state governmental regulators of virtual currency business activities, if the organizations
agree in writing to maintain confidentiality and security of shared information.
(3) Nothing in this Section shall constitute a waiver of the commissioner's authority
to do any of the following:
(a) Conduct any examination or investigation authorized by law.
(b) Otherwise take any independent action authorized by law or any rule promulgated
in accordance with the Administrative Procedure Act.
(c) Enforce compliance of any order issued pursuant to this Chapter.
(4) The following shall not constitute a waiver of any examination fee provided
pursuant to this Chapter or any rule promulgated in accordance with the Administrative
Procedure Act:
(a) The commissioner's participation in any joint examination or investigation.
(b) The commissioner's acceptance of an examination or investigative report
conducted and prepared by other state or federal regulators of virtual currency business
activity.
NOTE: The provisions of Acts 2023, No. 331, will terminate on July 1,
2027. See Acts 2024, No. 700.
NOTE: The provisions of Acts 2023, No. 331, have no termination date. See
Acts 2024, No. 159.