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while the Minnesota Department of Commerce has acknowledged that current state legislation is <br />ineffective, there appears to be limited momentum at this time for stronger statewide regulatory <br />reforms. <br /> <br />Mayor Heineman reasoned that requiring cryptocurrency kiosks to register with a $2,000 annual <br />fee, combined with strict compliance requirements and the possibility of removal within a short <br />timeframe, would likely make operation financially impractical and therefore discourage <br />installation altogether. He asked whether the City could legally require education or awareness <br />measures for kiosk registrants, such as informing property owners or operators about fraud risks, <br />and whether imposing such requirements would raise any legal concerns. <br /> <br />City Attorney Johnson stated that the Police Department has already conducted significant <br />outreach and education at locations that host cryptocurrency kiosks, including posting warning <br />signage to alert users to potential fraud. She questioned whether lack of knowledge is truly the <br />issue, noting that property owners are likely aware of the risks given the scale of fraud experienced. <br />She cited that Ramsey has seen hundreds of thousands of dollars in cryptocurrency-related fraud, <br />comparable to other cities, including Woodbury, which has reported over $8 million in fraud <br />between 2020 and 2024. <br /> <br />City Attorney Johnson explained that, because awareness alone has not proven sufficient, the <br />proposed registration ordinance includes additional regulatory requirements, such as mandatory <br />closed-circuit video surveillance of the kiosk and a requirement that the Police Department be <br />provided with footage upon request within 24 hours. She noted that these measures would apply <br />in the rare case where a property owner registers a kiosk, pays the $2,000 fee, and works with an <br />operator with no verified fraud incidents and who can meet all ordinance requirements. <br /> <br />Mayor Heineman clarified that while the City has already engaged in proactive education <br />regarding cryptocurrency kiosk fraud, he supports a more direct, practical approach that makes <br />property owners aware of the financial realities of kiosk operations, specifically that, due to <br />regulatory requirements and fees, kiosks are unlikely to remain in operation long enough to <br />generate a return on investment. He emphasized the importance of communicating this reality <br />without explicitly discouraging business in a way that could expose the City to legal risk. Based <br />on the discussion, he expressed support for moving forward with Option Three, implementing a <br />registration ordinance rather than pursuing a full ban. He thanked the staff for their work on the <br />issue. <br /> <br />2.04: Discussion 2026 Strategic Planning Session Structure <br /> <br />City Administrator Hagen noted that the city is approaching its annual strategic planning period <br />and that upcoming work session discussion topics are currently limited, creating an opportunity to <br />integrate strategic planning into future work sessions. He noted that, over recent years, the City’s <br />strategic planning exercises, such as identifying what is working well, what is not, and upcoming <br />opportunities and impacts, have remained largely consistent year to year. Given the limited change, <br />he asked for Council’s input on whether staff could complete much of the preliminary analysis in <br />advance and present a draft framework for Council review. <br />City Council Work Session / January 27, 2026 <br />Page 8 of 10 <br />