SB189 establishes licensing and regulatory requirements for businesses operating virtual currency kiosks, commonly known as cryptocurrency ATMs, in Kentucky. The law requires operators to obtain state licenses, maintain financial safeguards, verify customer identities, provide transaction disclosures and receipts, and comply with transaction limits and fraud-prevention requirements. It also authorizes the Kentucky Department of Financial Institutions to investigate violations, impose civil penalties, and suspend or revoke licenses. Local governments may adopt additional regulations, and operating without a license can result in criminal penalties.

The Kentucky State House of Representatives passed SB189 on April 1, 2026 by a vote of 81 to 7. We have assigned pluses to the nays because this bill infringes upon free enterprise and individual liberty. Its requirements for cryptocurrency kiosk operators interfere with voluntary transactions between consenting individuals, protected under Article I, Section 10 of the U.S. Constitution. Furthermore, granting government agencies broad enforcement powers, including the authority to impose fines and revoke licenses, expands government control over private industry. Such interference in private digital-currency transactions is a step toward even greater government surveillance and control through a central bank digital currency. Rather than imposing additional regulations that restrict economic freedom, Kentucky should uphold the free market and protect the rights to private property and freedom of contract.