{"data":{"id":"us-ky/krs-286.13-010","jurisdiction":"us-ky","citation":"KRS 286.13-010","heading":"Definitions for subtitle.  (Effective April 30, 2027)","body":"As used in this subtitle, unless the context requires otherwise:\n(1) \"Affiliate\" means a person that, either directly or indirectly through one (1) or more\nintermediaries, controls, is controlled by, or is under common control with another\nperson;\n(2) \"Agent\":\n(a) Means a person authorized by written agreement and designated by a virtual\ncurrency kiosk operator to engage in virtual currency kiosk business in this\nstate on behalf of the operator;\n(b) Includes, as the context requires, a person that an applic ant proposes to\nengage in virtual currency kiosk business in this state as an agent on behalf of\nthe applicant; and\n(c) Does not include an employee of a virtual currency kiosk operator or\napplicant;\n(3) \"Control\" means one (1) or more of the following:\n(a) The power to direct the management, operations, or policies of a person,\nwhich power may be:\n1. Direct or indirect; and\n2. Obtained:\na. Through legal or beneficial ownership of voting power in the\nperson; or\nb. Under a contract, arrangement, or understanding;\n(b) The power to vote, directly or indirectly, at least twenty -five percent (25%) of\nthe outstanding voting shares or voting interes ts of a person or a person in\ncontrol of the person;\n(c) The power to elect or appoint a majority of a person's executive officers,\nmanagers, directors, trustees, or other persons exercising managerial authority\nof a person or a person in control of the person;\n(d) The power to exercise, directly or indirectly, a controlling influence over the\nmanagement or policies of a person or a person in control of the person; and\n(e) Any other set of facts or circumstances, as determined by the commissioner\nthrough promulgation of an administrative regulation in accordance with KRS\nChapter 13A, that constitutes control;\n(4) \"Director\" means any of the following:\n(a) A member of a corporation's board of directors;\n(b) A manager of a limited liability company;\n(c) A partner of a partnership; or\n(d) A member of any other entity's governing body;\n(5) \"Executive officer\" means:\n(a) A president, chairperson of the executive committee, responsible individual,\nor chief financial officer; or\n(b) Any other natural person who perf orms similar functions for an applicant,\nlicensee, or agent;\n(6) \"Fiat currency\" means a government-issued currency that is:\n(a) Backed by the government's authority; and\n(b) Not backed by a physical commodity;\n(7) \"Key shareholder\" means any person, or gr oup of persons acting in concert, that is\nthe owner of twenty percent (20%) or more of any voting class of the stock of an\napplicant, licensee, or agent;\n(8) \"Legal tender\":\n(a) Means a medium of exchange or unit of value, including the coin or paper\nmoney of the United States, that is:\n1. Issued by:\na. The United States; or\nb. Another government; or\n2. Recognized by the Commonwealth of Kentucky, as permitted under\nArticle 1, Section 10, of the Constitution of the United States; and\n(b) Does not include any  medium of exchange or unit of value authorized,\nrecognized, or adopted by a foreign government if the medium of exchange or\nunit of value was a virtual currency before the government authorized,\nrecognized, or adopted the medium of exchange or unit of value;\n(9) \"License\" means a license issued by the commissioner under this subtitle;\n(10) \"Licensee\" means a person issued a license;\n(11) \"Material litigation\":\n(a) Means litigation that according to generally accepted accounting principles:\n1. Is significant to the financial health of an applicant, licensee, or agent;\nand\n2. Would be required to be disclosed in the applicant's, licensee's, or\nagent's annual audited f inancial statements, report to shareholders, or\nsimilar records; and\n(b) Includes any adjudication against an applicant, licensee, or agent by a federal\nor state administrative or regulatory agency relating to a violation of the Bank\nSecrecy Act, 31 U.S.C.  secs. 5311 to 5332 and 31 C.F.R. pt. 103, regardless\nof whether liability or fault has been admitted;\n(12) \"Responsible individual\":\n(a) Means a natural person who:\n1. Is employed by a virtual currency kiosk operator; and\n2. Has principal managerial autho rity over the virtual currency kiosk\noperator's virtual currency kiosk business in this state; and\n(b) Includes, as the context requires, a natural person who:\n1. Is employed by an applicant; and\n2. The applicant proposes to have principal managerial autho rity over its\nvirtual currency kiosk business in this state;\n(13) \"Virtual currency\":\n(a) Except as provided in paragraph (b) of this subsection, means a digital\nrepresentation of value that is:\n1. Used as a:\na. Medium of exchange;\nb. Unit of account; or\nc. Store of value; and\n2. Not legal tender, whether or not denominated in legal tender; and\n(b) Does not include:\n1. A transaction in which a merchant grants, as part of an affinity or\nrewards program, value that cannot be taken from or exchanged with a\nmerchant for legal tender, bank credit, or virtual currency; or\n2. A digital representation of value:\na. Issued by or on behalf of a publisher; and\nb. Used solely within an online game, game platform, or family of\ngames:\ni. Sold by the same publisher; or\nii. Offered on the same game platform;\n(14) (a) \"Virtual currency kiosk\" means a physical electronic terminal acting as a\nmechanical agent of a virtual currency kiosk operator to enable the operator to\nfacilitate the exchange of one (1) or more of the following:\n1. Fiat currency for virtual currency;\n2. Virtual currency for fiat currency; and\n3. Virtual currency for other virtual currency.\n(b) As used in this subsection, \"facilitate\" includes:\n1. Connecting directly to a separ ate virtual currency exchanger that\nperforms the exchange; and\n2. Drawing upon the virtual currency or fiat currency in the possession or\ncontrol of the virtual currency kiosk operator to perform the exchange;\n(15) \"Virtual currency kiosk charges\" means all of the following:\n(a) Fees and expenses charged to a virtual currency kiosk user; and\n(b) The difference between the market price of virtual currency and the price of\nthe virtual currency charged to a virtual currency kiosk user;\n(16) \"Virtual currency k iosk operator\" or \"operator\" means a person, including a\nlicensee, that engages in virtual currency kiosk business in this state;\n(17) \"Virtual currency kiosk transaction\" means any transaction:\n(a) Conducted or performed by electronic means via a virtual currency kiosk\nlocated in this state; or\n(b) Made at a virtual currency kiosk located in this state to purchase, sell, transfer,\nor otherwise exchange virtual currency; and\n(18) \"Virtual currency kiosk user\" or \"user\" means a person, other than a virtual\ncurrency kiosk operator, that initiates, authorizes, completes, or engages in a virtual\ncurrency kiosk transaction.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58277","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:16Z","sha256":"844586c45120ea065b1e7431ae3cdcad8083d60303c98b0afdbe4ddf9d6d2e79","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.12-155","next":"us-ky/krs-286.13-015"},"notice":"GroundRules: Original legal text. Not legal advice."}