meta_id 3432643

On August 25, 2026, the Office of Financial Regulation (OFR) issued an industry advisory clarifying how Virtual Currency Kiosk (VCK) operators must calculate and disclose conversion markups under Maryland law. The advisory addresses requirements established by Maryland statute and OFR regulations adopted on March 30, 2026, which mandate VCK registration and regulation. Maryland law requires VCK operators to refund any fees to consumers who notify the operator that a transaction was fraudulent. The OFR guidance clarifies that conversion markups—the markup amount of fiat currency required to obtain virtual currency—constitute fees under Maryland law and must be included in refund calculations. Under COMAR 09.03.16.02, a fee includes "any cost, charge, fee, or other expenses" collected by an operator from a user in connection with obtaining virtual currency services or money transmission involving virtual currency through a kiosk. Because markups impose a cost on users, they fall within this definition and trigger disclosure and refund obligations under Maryland Financial Institutions Code Sections 12-1204(b) and 12-1205(b), as well as COMAR 09.03.16.04. The OFR expects operators to calculate markups using methods that average consumers can understand, basing calculations on information from reputable, publicly available sources with which the operator has no affiliation. Operators must maintain documented methodologies for determining virtual currency exchange rates and applicable conversion markups. Documentation should be reasonable, explainable, and consistently applied across transactions, with records sufficient to demonstrate the pricing source, calculation method, and markup amount charged at the time of transaction. Operators should include markup information in onscreen disclosures and on consumer receipts. For questions regarding this advisory, operators may contact Assistant Commissioner Shereefat Balogun at 410-230-6390 or [email protected].