§ 19-14.3-1.1. Definitions.
In addition to the definitions provided in § 19-14-1 the following definitions are applicable to this chapter:
(1) "Blockchain analytics� means the analysis of data from blockchains or public distributed
ledgers, including associated transaction information.
(2) "Blockchain analytics software� means a software service that uses blockchain analytics
data to provide risk-specific information about virtual currency wallet addresses,
among other things.
(3) "Control� means:
(i) When used in reference to a transaction or relationship involving virtual currency,
the power to execute unilaterally or prevent indefinitely a virtual currency transaction;
and
(ii) When used in reference to a person, the direct or indirect power to direct the management,
operations, or policies of the person through legal or beneficial ownership of twenty-five
percent (25%) or more of the voting power in the person or under a contract, arrangement,
or understanding.
(4) "Department� means the department of business regulation, division of banking.
(5) "Exchange,� used as a verb, means to assume control of virtual currency from or on
behalf of a resident, at least momentarily, to sell, trade, or convert:
(i) Virtual currency for legal tender, bank credit, or one or more forms of virtual currency;
or
(ii) Legal tender or bank credit for one or more forms of virtual currency.
(6) "Existing customer� means an individual who has been a customer with a virtual currency
kiosk operator for more than thirty (30) days after the customer's first financial
transaction with the virtual currency kiosk operator.
(7) "Legal tender� means a medium of exchange or unit of value, including the coin or
paper money of the United States, issued by the United States or by another government.
(8) "Licensee� means a person licensed under this chapter.
(9) "Monetary value� means a medium of exchange, whether or not redeemable in money.
(10) "New customer� means an individual who has never previously transacted with the virtual
currency kiosk operator. The new customer shall remain defined as such during the
thirty-day (30) period after the first financial transaction with the virtual currency
kiosk operator. Following the thirty-day (30) period, a new customer automatically
converts to an existing customer.
(11) "Reciprocity agreement� means an arrangement between the department and the appropriate
licensing agency of another state that permits a licensee operating under a license
granted by the other state to engage in currency transmission business activity with
or on behalf of a resident.
(12) "Record� means information that is inscribed on a tangible medium or that is stored
in an electronic or other medium and is retrievable in perceivable form.
(13) "Registry� means the Nationwide Multistate Licensing System.
(14) "Resident�:
(i) Means a person that:
(A) Is domiciled in this state;
(B) Is physically located in this state for more than one hundred eighty-three (183) days
of the previous three hundred sixty-five (365) days; or
(C) Has a place of business in this state; and
(ii) Includes a legal representative of a person that satisfies subsection (14)(i) of this
section.
(15) "Responsible individual� means an individual who has managerial authority with respect
to a licensee's currency transmission business activity with or on behalf of a resident.
(16) "Sign� means, with present intent to authenticate or adopt a record:
(i) To execute or adopt a tangible symbol; or
(ii) To attach to or logically associate with the record an electronic symbol, sound, or
process.
(17) "State� means a state of the United States, the District of Columbia, Puerto Rico,
the United States Virgin Islands, or any territory or insular possession subject to
the jurisdiction of the United States.
(18) "Store,� except in the phrase "store of value,� means to maintain control of virtual
currency on behalf of a resident by a person other than the resident. "Storage� and
"storing� have corresponding meanings.
(19) "Transaction hash� means a unique identifier made up of a string of characters that
act as a record of and provide proof that the transaction was verified and added to
the blockchain.
(20) "Transfer� means to assume control of virtual currency from or on behalf of a resident
and to:
(i) Credit the virtual currency to the account of another person;
(ii) Move the virtual currency from one account of a resident to another account of the
same resident; or
(iii) Relinquish control of virtual currency to another person.
(21) "U.S. Dollar equivalent of virtual currency� means the equivalent value of a particular
virtual currency in United States dollars shown on a virtual currency exchange based
in the United States for a particular date or period specified in this chapter.
(22) "Virtual currency address� means an alphanumeric identifier associated with a virtual
currency wallet identifying the location to which a virtual currency transaction can
be sent.
(23) "Virtual currency business activity� means:
(i) Exchanging, transferring, or storing virtual currency whether directly or through
an agreement with a virtual currency control-services vendor;
(ii) Holding electronic precious metals or electronic certificates representing interests
in precious metals on behalf of another person or issuing shares or electronic certificates
representing interests in precious metals; or
(iii) Exchanging one or more digital representations of value used within one or more online
games, game platforms, or family of games for:
(A) Virtual currency offered by or on behalf of the same publisher from which the original
digital representation of value was received; or
(B) Legal tender or bank credit outside the online game, game platform, or family of games
offered by or on behalf of the same publisher from which the original digital representation
of value was received.
(24) "Virtual currency control-services vendor� means a person who has control of virtual
currency solely under an agreement with a person who, on behalf of another person,
assumes control of virtual currency.
(25) "Virtual currency kiosk� or "kiosk� means an electronic terminal acting as a mechanical
agent of the virtual currency kiosk operator that enables the virtual currency kiosk
operator to facilitate the exchange of virtual currency for money, bank credit, or
other virtual currency including, but not limited to:
(i) Connecting directly to a separate "virtual currency exchange� that performs the actual
virtual currency transmission; or
(ii) Drawing upon the virtual currency in the possession of the electronic terminal's operator.
(26) "Virtual-currency kiosk operator� means a person or business entity that engages in
virtual-currency business activity via a virtual currency kiosk located in this state
or a person who owns, operates, or manages a virtual currency kiosk located in this
state through which virtual currency business activity is offered.
(27) "Virtual currency kiosk transaction� means a transaction conducted or performed, in
whole or in part, by electronic means via a virtual currency kiosk. Virtual currency
kiosk transaction also means a transaction made at a virtual currency kiosk to purchase
virtual currency with fiat currency or to sell virtual currency for fiat currency.
(28) "Virtual currency wallet� means a software application or other mechanism providing
a means for holding, storing, and transferring virtual currency.