Unclaimed virtual currency funds and funds held for prepayment of funeral-related expenses regulation

A bill for an act

relating to commerce; regulating unclaimed virtual currency funds and funds held

for prepayment of funeral-related expenses; amending Minnesota Statutes 2024,

sections 345.31, by adding a subdivision; 345.43, by adding a subdivision;

proposing coding for new law in Minnesota Statutes, chapter 345.

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

Section 1.

Minnesota Statutes 2024, section 345.31, is amended by adding a subdivision

to read:

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Subd. 10.

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Virtual currency.

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"Virtual currency" means a digital representation of value

used as a medium of exchange, unit of account, or store of value that does not have legal

tender status recognized by the United States. Virtual currency does not include:

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(1) software or protocols governing the transfer of the digital representation of value;

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(2) game-related digital content; or

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(3) a loyalty card or gift card.

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Sec. 2.

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[345.382] FUNDS HELD FOR THE PREPAYMENT OF

FUNERAL-RELATED EXPENSES.

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Funds on deposit or held in trust for the prepayment of a funeral or other funeral-related

expenses are presumed abandoned at the earliest of:

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(1) three years after the date of death of the beneficiary;

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(2) one year after the date the beneficiary has attained, or would have attained if living,

the age of 105, if the holder does not know whether the beneficiary is deceased; or

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(3) 30 years after the contract for prepayment was executed.

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Sec. 3.

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[345.383] EXEMPTION FOR CERTAIN PROPERTY HELD IN

TAX-DEFERRED ACCOUNTS.

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Property held in a plan described in section 529 or 529A of the Internal Revenue Code,

as amended, are exempt from the requirements of sections 345.31 to 345.60.

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Sec. 4.

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[345.384] VIRTUAL CURRENCY.

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(a) Virtual currency is presumed abandoned three years after the apparent owner's latest

indication of interest in the virtual currency.

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(b) For purposes of this section, an indication of an apparent owner's interest in virtual

currency includes:

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(1) a record communicated by the apparent owner to the holder or agent of the holder

concerning the property or the account in which the property is held;

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(2) an oral communication by the apparent owner to the holder or agent of the holder

concerning the property or the account in which the property is held, if the holder or its

agent contemporaneously makes and preserves a record of the fact of the apparent owner's

communication;

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(3) a distribution or evidence of receipt of a distribution made by electronic or similar

means; or

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(4) activity directed by an apparent owner in the account in which the property is held,

including accessing the account or information concerning the account, or a direction by

the apparent owner to increase, decrease, or otherwise change the amount or type of virtual

currency held in the account.

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(c) An action by an agent or other representative of an apparent owner, other than the

holder acting as the apparent owner's agent, is presumed to be an action on behalf of the

apparent owner.

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(d) A communication with an apparent owner by a person other than the holder or the

holder's representative is not an indication of interest in the property by the apparent owner

unless a record of the communication evidences the apparent owner's knowledge of a right

to the property.

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Sec. 5.

Minnesota Statutes 2024, section 345.43, is amended by adding a subdivision to

read:

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Subd. 2b.

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Virtual currency.

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(a) If property reported to the commissioner is virtual

currency, the holder must liquidate the virtual currency and remit the proceeds to the

commissioner.

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(b) The liquidation must occur any time within 30 days before filing the report under

section 345.41. The owner does not have recourse against the holder or the commissioner

to recover any gain in value that occurs after the liquidation of the virtual currency under

this subdivision.

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(c) If a holder cannot liquidate virtual currency and cannot otherwise cause virtual

currency to be liquidated, the holder must promptly notify the commissioner in writing and

explain the reasons why the virtual currency cannot be liquidated. The commissioner has

absolute and sole discretion to direct the holder to:

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(1) transfer the virtual currency that cannot be liquidated to a custodian selected by the

commissioner; or

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(2) continue to hold the virtual currency until the commissioner or the holder determines

that the virtual currency can be liquidated pursuant to this chapter.

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