The proposed bill seeks to prohibit the operation of virtual currency kiosks in Minnesota by amending Minnesota Statutes 2024, section 53B.69, and introducing a new section, 53B.691, which explicitly states that "a person is prohibited from placing or operating a virtual currency kiosk in Minnesota." In addition, the bill repeals several existing statutes related to virtual currency, specifically Minnesota Statutes 2024, sections 53B.69 (subdivisions 1-13), 53B.70, 53B.71, 53B.72, 53B.73, 53B.74, and 53B.75, thereby eliminating the previous regulatory framework governing virtual currency kiosks and related activities. This marks a significant shift in Minnesota's approach, moving from regulation to an outright ban on such kiosks.

The bill also introduces new consumer protection measures for virtual currency transactions. It requires kiosk operators to provide clear disclosures about the risks associated with virtual currency, including the absence of government backing and the irreversibility of transactions. Operators must inform users of their rights, including the ability to stop payments and receive transaction receipts. Additionally, the bill mandates refunds for new customers who report fraudulent transactions within 14 days, sets a maximum daily transaction limit of $2,000 for new customers, and allows existing customers' limits to be determined by operators in accordance with federal law. Overall, the legislation aims to enhance consumer protection and transparency in virtual currency transactions while prohibiting the operation of kiosks.

Statutes affected:
Introduction: 53B.69