A bill moving through the Delaware General Assembly would completely overhaul the state’s rules governing money transmission services and introduce a brand-new regulatory structure for virtual currency businesses.
The legislation, if passed, would scrap the current Chapter 23 of Title 5 of the Delaware Code and replace it with what would be called the “Delaware Money Transmission and Virtual Currency Modernization Act.”
One of the key changes would allow the State Bank Commissioner to work alongside other states in licensing and overseeing money transmitters through the NMLS system — a shared, multi-state licensing platform. The bill also introduces updated financial safety standards, including a tiered net worth requirement based on total assets, and revises surety bond requirements tied to a licensee’s average daily money transmission activity.
On the consumer protection side, the bill would standardize receipt requirements for both traditional currency and virtual currency transactions, give customers a 10-day window to request refunds on certain transfers, and set clear disclosure rules for businesses that handle payroll processing.
For the first time, Delaware would have a dedicated regulatory framework specifically for virtual currency business activity. The bill defines what qualifies as virtual currency and what counts as virtual currency business activity. It also requires businesses to inform customers about the risks associated with virtual currency. Notably, any virtual currency held by a licensed business would be considered a proportional property interest belonging to customers — meaning it could not be claimed by the business’s creditors.
The State Bank Commissioner would be granted authority to create rules and regulations for carrying out the new law. Businesses would have six months to come into general compliance, while a one-year window would be provided for meeting the new net worth and investment standards.
The law would take effect either one year after it is signed or when the State Banking Commissioner announces that final regulations are in place — whichever comes first.
Because the bill touches on general corporation law, it requires more than a simple majority to pass — specifically, a two-thirds vote of all elected members in each chamber of the General Assembly, as required by the Delaware Constitution.
