Calculating Fees for Virtual Currency Kiosk: Adding in Markups - Financial Regulation

August 25, 2026

Maryland law requires the registration and regulation of Virtual Currency Kiosks (VCKs) and the Office of Financial Regulation (OFR) adopted regulations implementing the law on March 30, 2026. Both the statute and regulations require VCKs to refund any fees to a consumer where a consumer notifies the VCK operator that the transaction was fraudulent. OFR is issuing this guidance to provide information to industry on including any conversion markup in the calculation of a fee a customer may receive in their refund. This guidance is intended to clarify existing law.

Conversion Markups Are Fees

COMAR 09.03.16.02 defines a fee as “any cost, charge, fee, or other expenses, however defined, collected by or on behalf of an Operator and collected from or charged to any User in connection with obtaining: (a) A Virtual Currency Service from a Kiosk; or (b) Any money transmission involving virtual currency facilitated through a Kiosk.” When an Operator marks up the amount of fiat currency required to obtain Virtual Currency, it is imposing a cost on a User in connection with obtaining or transmitting Virtual Currency. This makes any markup a fee under Maryland law. As a fee, Maryland law requires an Operator to disclose this markup (Maryland Financial Institutions Code §§12-1204(b) 12-1205(b)) and to refund that fee where a consumer has properly notified the Operator of fraud associated with the transaction (Maryland COMAR 09.03.16.04). Operators should be prepared to include information on the markup in its onscreen disclosure and on any receipt it provides to a consumer.

Calculating a Markup

An Operator should be able to calculate the markup for virtual currency it has sold or purchased to a consumer using a method the average consumer can understand. OFR expects Operators to base any calculation of a markup on information that comes from a reputable, publicly available source with which the operator is not affiliated.

Documentation of Pricing Methodology and Conversion Markup Calculations

Operators should maintain a documented methodology for determining the virtual currency exchange rate and any applicable conversion markup. The methodology should be reasonable, explainable, and consistently applied across transactions. Records should be sufficient to demonstrate the pricing source, calculation method, and amount of any conversion markup charged to the consumer at the time of the transaction.

Contact

For any questions regarding this advisory, please contact Assistant Commissioner Shereefat Balogun, by phone at 410-230-6390 or by email at [email protected].