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previously supported drafting an ordinance to prohibit them. Since that discussion, additional <br />information has emerged, prompting a reconsideration of the approach. <br /> <br />Police Chief Bluml highlighted several developments, including public education efforts by Derek <br />Anderson through QCTV and an extended presentation to the County Attorney’s Office to raise <br />awareness of crypto-related fraud. He explained that Derek Anderson has also been working <br />closely with the City’s new attorney, Amanda Johnson, who provided new legal insights. Recent <br />lawsuits related to cryptocurrency kiosk bans in other jurisdictions were cited as a key factor <br />influencing the discussion. <br /> <br />Police Chief Bluml stated that staff were seeking Council input and consensus on whether to <br />continue pursuing a complete ban or pivot to an alternative regulatory approach and indicated that <br />Attorney Johnson would outline her recommendations during the discussion. <br /> <br />City Attorney Johnson shared her legal analysis of cryptocurrency kiosks, drawing on prior work <br />with the City of Forest Lake, where similar concerns were raised. Based on guidance from the <br />Minnesota Department of Commerce and the League of Minnesota Cities, she stated that an <br />outright ban on cryptocurrency kiosks is neither a strong nor a defensible legal position. <br /> <br />City Attorney Johnson outlined three policy options available to the City: <br />1. Do nothing, <br />2. Adopt a complete ban, or <br />3. Implement a registration ordinance. <br /> <br />City Attorney Johnson noted that both Stillwater and St. Paul have enacted bans and are currently <br />facing litigation related to those actions, with the Stillwater case further along in the legal process. <br />She explained that the registration ordinance mirrors the approach to other state-licensed but <br />locally regulated activities, such as cannabis, in which kiosks would be registered with the city <br />rather than banned outright. Under this model, registration would be tied to the property owner, <br />typically gas stations, rather than the kiosk operator, reflecting the City’s land-use authority. <br /> <br />City Attorney Johnson explained key elements of the proposed registration ordinance include: <br /> <br />• Kiosks must be from a brand with no more than two verified fraud incidents within the city <br />in the past 12 months, as determined by the Police Department—criteria that would likely <br />exclude all current kiosks in Ramsey. <br />• A $2,000 annual registration fee. <br />• Additional operational requirements designed to deter fraud and remove bad actors. <br /> <br />Attorney Johnson emphasized that data indicate that approximately 95–98% of cryptocurrency <br />kiosk transactions involve fraud, underscoring a public safety concern. She noted that the <br />registration approach offers a balanced solution, allowing legitimate operators to continue <br />operating while providing the city with a legally sound mechanism to protect residents. She <br />concluded by confirming that staff have drafted an updated registration ordinance. She reiterated <br />that the final decision, whether to pursue a ban, adopt the registration model, or take no action, <br />rests with the City Council. <br />City Council Work Session / January 27, 2026 <br />Page 6 of 10 <br />