HF 4280

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/26/2024 02:21pm

A bill for an act
relating to commerce; regulating disclosures and consumer protections related to
virtual-currency kiosks; proposing coding for new law in Minnesota Statutes,
chapter 53B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [53B.721] VIRTUAL-CURRENCY KIOSK.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Virtual currency address" means an alphanumeric identifier representing a destination
for a transfer that is associated with a virtual currency wallet.
new text end

new text begin (c) "Virtual-currency kiosk" or "kiosk" means an electronic terminal acting as a licensee's
mechanical agent to facilitate the exchange of virtual currency, including but not limited to
by:
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new text begin (1) connecting directly to a separate virtual currency exchanger that performs the actual
virtual currency transfer; or
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new text begin (2) drawing upon the virtual currency in possession of the licensee that owns or operates
the kiosk.
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new text begin (d) "Virtual currency wallet" means a software application or other electronic mechanism
that provides a means to hold, store, or transfer virtual currency.
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new text begin Subd. 2. new text end

new text begin Disclosures. new text end

new text begin (a) In addition to the requirements under section 53B.72, paragraph
(b), a licensee operating a virtual-currency kiosk must disclose and receive a customer
acknowledgment of:
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new text begin (1) the daily virtual currency transaction limit under subdivision 3, paragraph (a); and
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new text begin (2) the difference between the virtual currency's sale price and the virtual currency's
current market price.
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new text begin (b) In addition to the requirements of section 53B.72, paragraph (c), a licensee operating
a virtual-currency kiosk must include in the record:
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new text begin (1) a statement of the licensee's liability for nondelivery or delayed delivery;
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new text begin (2) the virtual currency addresses involved; and
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new text begin (3) the licensee's refund policy, including the requirements of subdivision 3, paragraph
(b).
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new text begin Subd. 3. new text end

new text begin Transaction limit and refund. new text end

new text begin (a) A licensee must not allow a person to exceed
$2,500 in transactions per day at a virtual-currency kiosk.
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new text begin (b) A licensee, at the licensee's own expense and within 72 hours of the time a transfer
or exchange at a virtual-currency kiosk occurs, must allow the person who initiated the
transfer or exchange to cancel the transfer or exchange and receive a full refund if:
new text end

new text begin (1) the subject transfer or exchange is the person's first transfer or exchange with the
licensee; or
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new text begin (2) the virtual currency wallet or exchange is located outside of the United States.
new text end