MN HF3709

Banking institutions and credit unions may provide virtual-currency custody services in fiduciary or nonfiduciary capacities, including safekeeping, controlling, or managing virtual currency and cryptographic private keys on behalf of customers

Institutions must provide written notice to the commissioner at least 60 days before commencing virtual-currency custody services, describing the nature of services and risk management framework

Customer virtual currency must be legally and operationally segregated from the institution's assets and cannot be treated as the institution's property

Institutions must maintain written policies and procedures governing risk management, internal controls, cybersecurity, business continuity, and compliance, and may use qualified third-party service providers while retaining oversight responsibility

Effective August 1, 2026, for virtual-currency custody services commenced on or after that date