1. A. Scope.

   1. (1) This regulation governs the procedure by which a User may request a Fee Refund on a transaction the User alleges is a Fraudulent Transaction.
   2. (2) A User’s rights under this regulation are in addition to any rights a User may have under any applicable law.

2. B. Definitions.

   1. (1) In this regulation, the following terms have the meanings indicated.

   2. (2) Terms Defined.

      1. (a) “Fee Refund” means a refund under this regulation of the Fee charged to that User.
      2. (b) “Refund Claim” means a User’s claim for a Fee Refund.
      3. (c) “Refund Denial” means an Operator’s denial of a Refund Claim.
      4. (d) “Written Confirmation” means a written confirmation of a verbally given Notice of Fraud.

3. C. Notice of Fraud by User.

   1. (1) An Operator shall treat any Notice of Fraud as a Refund Claim.
   2. (2) A User must provide a Notice of Fraud to an Operator no more than 90 calendar days after the alleged Fraudulent Transaction.

   3. (3) A Notice of Fraud is sufficient for this regulation if it:

      1. (a) Includes the User’s name;
      2. (b) Provides a copy of the Receipt or otherwise provides information sufficient to identify the Virtual Currency Services the User obtained through the Operator’s Kiosk; and
      3. (c) Contains a brief description of why the User believes the transaction was a Fraudulent Transaction.
   4. (4) An Operator may not engage in any act or subterfuge to make it difficult for a User to provide a Notice of Fraud.

4. D. Place of Notice.

   1. (1) An Operator must offer a User:

      1. (a) At least one method to submit an Electronic Notice of Fraud; and
      2. (b) At least one method to submit a Non-electronic Notice of Fraud.

   2. (2) The Operator shall conspicuously include information on its website and in any promotional materials explaining how a User may submit:

      1. (a) An Electronic Notice of Fraud; and
      2. (b) A Non-electronic Notice of Fraud.

   3. (3) An Operator may require the User to submit a Non-electronic Notice of Fraud only to a telephone number or address disclosed on the Receipt, provided that the Operator:

      1. (a) Has reasonable procedures to redirect a User to the specified telephone number or address if the User attempts to provide a Non-electronic Notice of Fraud by other means;
      2. (b) Has reasonable procedures to route any written Non-electronic Notice of Fraud the Operator receives at any other address to the department or personnel responsible for investigating and resolving a Refund Claim; and
      3. (c) Conspicuously displays the designated telephone number or address for a User to provide a Non-electronic Notice of Fraud on any website the Operator maintains.

   4. (4) If a User provides a written Notice of Fraud to an address other than the address designated by the Operator and the Operator receives such Notice of Fraud:

      1. (a) The Operator must process the Notice of Fraud as a Refund Claim in accordance with this regulation; and
      2. (b) The time frame for investigating and resolving the Refund Claim shall begin 5 business days after the Operator’s receipt of the Notice of Fraud at the incorrect address.

5. E. Written Confirmation.

   1. (1) An Operator may require a User to provide Written Confirmation of a verbal Non-electronic Notice of Fraud within 30 calendar days of the verbal Non-electronic Notice of Fraud.

   2. (2) An Operator requiring a Written Confirmation under this Section shall:

      1. (a) At the time of the verbal Non-electronic Notice of Fraud:

         1. (i) Inform the User that the Operator must receive a Written Confirmation; and
         2. (ii) Inform the User that the Operator will mail the User a notice concerning the Written Confirmation; and

      2. (b) Within 3 business days of the verbal Non-electronic Notice of Fraud, mail the User written notice stating:

         1. (i) The Operator requires a Written Confirmation;
         2. (ii) A specific date at least 30 calendar days after the date of the notice by which the User must submit the Written Confirmation;
         3. (iii) The address to send the Written Confirmation; and
         4. (iv) The User’s failure to timely provide a Written Confirmation may result in a Refund Denial.
   3. (3) An Operator may not require the Written Confirmation to include information inconsistent with the definition of a Non-electronic Notice of Fraud.
   4. (4) A User who verbally provides a Non-electronic Notice of Fraud within the time frame established by §E(2) of this regulation has timely submitted a Notice of Fraud.

   5. (5) If a User fails to provide the Written Confirmation within 30 calendar days of the Operator’s full compliance with §E(2) of this regulation:

      1. (a) The Operator may mail written notice to the User:

         1. (i) Informing the User that the Operator has not received the Written Confirmation;
         2. (ii) Requiring the User to provide the Written Confirmation within 30 calendar days of the notice; and
         3. (iii) Informing the User the Operator may deny the Refund Claim if the User fails to provide the Written Confirmation within 30 calendar days of the notice.
      2. (b) A User’s failure to provide a timely Written Confirmation following the Operator’s compliance with §E(5)(a) of this regulation constitutes grounds to issue a Refund Denial.

6. F. Investigation and Resolution.

   1. (1) Except as otherwise expressly set forth in this regulation, an Operator shall have 30 calendar days from receipt of a Notice of Fraud to investigate and resolve the Refund Claim.
   2. (2) If the Operator requested a Written Confirmation in compliance with §E of this regulation, the Operator shall have 30 calendar days from receipt of the Written Confirmation to investigate and resolve the Refund Claim.

   3. (3) In connection with its investigation of a Refund Claim, an Operator may:

      1. (a) Inquire if the User filed a police report;
      2. (b) Inquire if the User possesses any documents or communications relating to the alleged Fraudulent Transaction; and
      3. (c) Request copies of any police report filed or documents possessed by the User and relating to the alleged Fraudulent Transaction.

   4. (4) In connection with its investigation of a Refund Claim, an Operator may not:

      1. (a) Require the filing of a police report;
      2. (b) Require the User to provide copies of a filed police report or documents relating to the alleged Fraudulent Transaction;
      3. (c) Imply that a failure to file a police report, provide copies of a filed police report, or provide copies of documents relating to the alleged Fraudulent Transaction will impact the Refund Claim;
      4. (d) Issue a Refund Denial based on a failure to file a police report, failure to provide copies of a filed police report, or failure to provide copies of documents relating to the to the alleged Fraudulent Transaction; or
      5. (e) Charge any cost, fee, or other amount to investigate and resolve a Refund Claim.
   5. (5) A User shall reasonably cooperate with the Operator’s investigation of a Refund Claim by answering questions concerning the Fraudulent Transaction.

   6. (6) Within 3 business days of completing its investigation, an Operator shall resolve a Refund Claim by mailing the User either:

      1. (a) A Refund Denial; or
      2. (b) A statement granting the Refund Claim.

   7. (7) A Refund Denial must:

      1. (a) Generally describe the Operator’s investigative process;
      2. (b) List any facts the Operator relied on for the Refund Denial;
      3. (c) Describe any other factors the Operator relied on for the Refund Denial;
      4. (d) Inform the User of the right to file a complaint regarding the Refund Denial with the Commissioner; and
      5. (e) Provide the User with a link or other information needed to reach the Commissioner.

   8. (8) An Operator may not issue a Refund Denial based on any of the following:

      1. (a) User’s negligence;
      2. (b) User’s failure to consider or act upon warnings and disclosures provided by the Operator;
      3. (c) User’s responses to questions posed by the Operator when the User obtained the Virtual Currency Services; or
      4. (d) User submission of a Notice of Fraud for a prior transaction.
   9. (9) A Fee Refund shall be issued promptly in United States currency.
   10. (10) A User receiving a Refund Denial may file a complaint with the Commissioner.
   11. (11) A complaint concerning a Refund Denial must be filed with the Commissioner within 3 years of the User’s receipt of the Refund Denial.

Authority: Financial Institutions Article, §§2-105.1, and 12-1209, Annotated Code of Maryland

Effective date:

Regulations .01—.10 adopted as an emergency provision effective December 5, 2025 (52:26 Md. R. 1306); adopted permanently effective March 30, 2026 (53:6 Md. R. 286)