Title
Creating Chapter 297 of the Legislative Code prohibiting the use and placement of virtual currency kiosks within the City.
Body
SECTION 1
WHEREAS, virtual currency kiosks or cryptocurrency kiosks (“kiosks”) are a significant instrument used in financial fraud and financial scams. The Federal Bureau of Investigation (“FBI”) reported that, in 2024, there were nearly 150,000 complaints referencing cryptocurrency and $9.3 billion in reported losses. Of these totals, nearly 11,000 complaints and $246.7 million in losses were connected to transactions at kiosks; and
WHEREAS, the FBI reports that people engaged in financial fraud and financial scams use kiosks by providing detailed instructions to their victims, including how to withdraw cash from their bank, how to locate a kiosk, and how to deposit and send the cash using the kiosk, to complete a nearly anonymous transaction using cryptocurrency to steal cash; and
WHEREAS, of the individuals who reported being victims of these financial fraud and financial scams using kiosks in 2024, 1,852 identified themselves as being in Minnesota, and the losses identified by victims in Minnesota totaled over $91 million; and
WHEREAS, the City of Saint Paul Police Department has limited resources to investigate and pursue these types of criminal activities. In addition, these virtual transactions allow transfers of funds across jurisdictions, thereby impeding the ability of any local law enforcement agency and any U.S. law enforcement agency to recover such funds; and
WHEREAS, under Minnesota Statutes section 412.221, subdivision 32, the City of Saint Paul has the authority and responsibility to prevent crime, protect property, and promote the general welfare of those individuals present within its boundaries; and now, therefore, be it
RESOLVED, the Council of the City of Saint Paul does ordain:
SECTION 2
Title XXVIII of the Saint Paul Legislative Code is hereby amended to include Chapter 297, which must read as follows:
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