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Can I offer a cryptocurrency as a form of payment without violating financial regulations in Minnesota? What are the requirements?

Based on the documents provided, there is no specific mention of cryptocurrency as a form of payment in Minnesota’s financial regulations. However, it is important to note that cryptocurrency is a relatively new technology and its legal status is still evolving.

If you plan to offer cryptocurrency as a form of payment, it is recommended that you consult with a legal professional who is knowledgeable in both cryptocurrency and Minnesota financial regulations. They can advise you on the specific requirements and regulations that may apply to your situation.

Additionally, if you are a financial planner or investment adviser registered or required to be registered under the Minnesota Securities Act, you must provide a disclosure document to the client that includes the basis of any fees, commissions, or other compensation received by the person in connection with the rendering of financial planning services or financial counseling or advice. The disclosure document must also contain the identification of companies and/or affiliates that supply products or services offered or sold by the person, the licenses held by the person, and the specific identity of any financial products or services, by category, that the person is authorized to offer or sell [1.2].

If you have custody of or discretionary authority over client funds or securities, you must have first posted with the administrator a surety bond or an irrevocable letter of credit in the maximum amount authorized by Minnesota Statutes, section 80A.66, subsection (e) [1.3].

If you plan to offer cryptocurrency as a form of payment through an MNvest offering, you must file a notice on the MNvest notice form, available on the Department of Commerce website or upon request from the administrator, not less than ten days before the beginning of the MNvest offering. The notice filing must include a copy of a disclosure document including all information required under Minnesota Statutes, section 80A.461, subdivision 4 [1.6].

It is important to note that these requirements may not be exhaustive and that consulting with a legal professional is recommended to ensure compliance with all applicable regulations.

[1.2]: MNAC 2876.5024 [1.3]: MNAC 2876.4115 [1.6]: MNAC 2876.3050

Source(s):
Jurisdiction

Minnesota