HF3642

Purpose

• The bill would prohibit placing or operating a virtual currency kiosk in Minnesota and would repeal the current regulatory framework governing virtual currency kiosks.

Main Provisions

• Section 2: Prohibition of virtual currency kiosks
  • A person is prohibited from placing or operating a virtual currency kiosk in Minnesota.
• Section 1: Definitions
  • Adds a subdivision of terms to the existing statute to define key terms used in the virtual currency framework (e.g., terms like control of virtual currency, exchange, transaction hash, new customer, existing customer, transfer, United States dollar equivalent, virtual currency address, virtual currency kiosk operator, virtual currency kiosk transaction, and virtual currency wallet).
  • These definitions relate to the existing framework that the bill intends to repeal.
• Section 3: Repealer
  • Repeals Minnesota Statutes 2024 sections 53B.69 subdivisions 1–13 and 53B.70, 53B.71, 53B.72, 53B.73, 53B.74, and 53B.75.
  • Also references an appendix that contains the prior definitions and provisions for virtual currency activity (which would be removed under this bill).

Significant Changes to Existing Law

• Abolishes the entire regulatory regime for virtual currency kiosks (the sections that cover licensing, disclosures, customer protections, transaction limits, recordkeeping, and related requirements).
• Establishes a blanket prohibition on operating any virtual currency kiosk in Minnesota.
• Removes the current requirements that applying entities would have needed to follow, including licensing, disclosures to customers, transaction reporting, and protections tied to virtual currency transactions.

Practical Impact

• Businesses would be barred from opening or running virtual currency kiosks in Minnesota.
• Any existing kiosks would need to cease operations.
• Consumer protections and regulatory oversight previously provided under these sections would no longer apply.
• The state would no longer regulate or require disclosures, limits, or recordkeeping for virtual currency kiosk activities.

Relevant Terms (Keywords from the bill or its impact)

• virtual currency kiosk
• Minnesota
• prohibition / prohibited
• licensing (virtual currency business activity)
• disclosures
• new customer / existing customer
• transaction limits
• virtual currency transaction
• transfer
• virtual currency wallet
• virtual currency address
• transaction hash
• exchange
• United States dollar equivalent
• control of virtual currency
• virtual currency administration
• virtual currency kiosk operator
• 53B.69 / 53B.70–53B.75 (previous statutes being repealed)