How to Obtain a Cryptocurrency License in the USA
Businesses offering cryptocurrency services in the U.S. are classified as Money Transmitters and must adhere to strict regulatory frameworks. Below is a step-by-step guide to compliance under the FinCEN (Financial Crimes Enforcement Network) guidelines:
1. Register as a Money Services Business (MSB)
- Submit FinCEN Form 107 via the BSA E-Filing System.
- Renew registration every two years.
2. Implement an Anti-Money Laundering (AML) Program
AML programs must include:
- Documented policies and internal controls.
- A designated compliance officer.
- Employee training on detecting suspicious transactions.
- Independent audits to ensure program effectiveness.
3. Sanctions Reporting and Suspicious Activity Monitoring
- Report transactions exceeding $2,000 if deemed suspicious.
- Screen customers against the OFAC Sanctions List.
4. Secure State-Level Money Transmitter Licenses
Each state has unique requirements. Key steps include:
- Submitting applications via the Nationwide Multistate Licensing System (NMLS).
Providing:
- Business plans and financial statements.
- Proof of minimum net worth.
- Surety bonds (amounts vary by state).
State-Specific Licensing Requirements
| State | License Required? | Notes |
|-------|------------------|-------|
| New York | Yes | Requires BitLicense + Money Transmitter License. |
| Wyoming | No | Favors crypto-friendly regulations. |
| Montana | No | No money transmission laws for crypto. |
| Florida | Probable | No explicit crypto guidance but likely covered under existing laws. |
👉 Explore crypto licensing opportunities for multistate operations.
Ongoing Compliance for Licensed Businesses
- Monitor FinCEN updates and NMLS notifications.
- Adjust operations to state-specific regulatory changes.
FAQs
1. Which states require a cryptocurrency license?
New York, Louisiana, and Connecticut mandate specific licenses. Other states may regulate crypto under existing money transmitter laws.
2. How long does the licensing process take?
Approval timelines range from 3–12 months, depending on the state and application complexity.
3. Can a single license cover multiple states?
No—businesses must apply separately in each state where they operate.
4. What’s the cost of obtaining a license?
Fees vary from $1,000–$25,000+, including bonds and legal consultations.
5. Is Wyoming truly crypto-friendly?
Yes—Wyoming has passed 13 pro-crypto laws, offering clear regulations for digital assets.
👉 Learn how to streamline multistate licensing with the MMLA program.
Conclusion
Navigating U.S. crypto licensing demands meticulous planning. Partner with legal experts to ensure compliance and avoid penalties. Stay updated on evolving state and federal laws to maintain your license validity.