Money Transmitter License Bitcoin - Faisal Khan and Company

Bitcoin Money Transmitter License

What is a Bitcoin Money Transmitter License?

A bitcoin money transmitter license is the same as the regular MTL required for money services businesses in the United States. Any bitcoin based business that offers the services of transmitting virtual money or currency from one person or place to another is classified as a money transmitter. This means that in most US states, you need to get a license before beginning operations as a bitcoin services company.

Getting a license is essential in countries and US states where the regulations mandate it otherwise your business will be considered illegal.

Getting a Bitcoin Money Transmitter License

Are you in the market for a bitcoin money transmitter license? Do these sound familiar?

  • The pricing is not worth it
  • It takes too much time
  • That’s a lot of money you cannot afford to invest right now
  • It’s too complex

You are not alone. Getting a money transmitter license for a bitcoin business is not easy. It costs a lot of money and requires tremendous amounts of effort and time. New York is especially difficult with its BitLicense which has proven almost impossible for many businesses.

In order to get a license, you will need to follow the bitcoin licensing guidelines for each U.S. state where your business will offer services.

Operating without a License

As mentioned above, it is illegal to operate your bitcoin business without a license except when you are an Authorized Delegate of a licensed money transmitter business. If you have access to licensed financial institution that can sponsor your project without you having to obtain your own licenses, then you are legally allowed to offer your services.

It is a very routine practice for licensed banks and/or non-banking financial institutions to become the Program Manager and provide umbrella coverage for bitcoin businesses to comply with licensing requirements.

These banks are friendly and positive towards bitcoin companies and have various programs for assisting you to get access.

US State Regulations for Bitcoin

If you would like to be up and running in the US market for your bitcoin project, you need to have license coverage. There are NO exceptions or shortcuts.

Each state has its own regulations and requirements. The table below will guide you to each US state’s regulatory authority where you can find more information about their bitcoin money transmitter license application process, necessary forms, and conditions.

StateMoney Transmitter Licensing Authority
AlabamaAlabama Securities Commission
AlaskaAlaska Division of Banking and Securities
ArizonaArizona Department of Financial Institutions
ArkansasArkansas Securities Department
CaliforniaCalifornia Department of Business Oversight
ColoradoColorado Division of Banking
ConnecticutConnecticut Department of Banking
DelawareDelaware Office of the State Bank Commissioner
District of ColumbiaDistrict of Columbia Department of Insurance, Securities and Banking
FloridaFlorida Office of Financial Regulation
GeorgiaGeorgia Department of Banking and Finance
HawaiiHawaii Department of Commerce and Consumer Affairs
IdahoIdaho Department of Finance
IllinoisIllinois Department of Financial & Professional Regulation
IndianaIndiana Department of Financial Institutions
IowaIowa Division of Banking
KansasKansas Office of the State Bank Commissioner
KentuckyKentucky Department of Financial Institutions
LouisianaLouisiana Office of Financial Institutions
MaineMaine Office of Consumer Credit Protection
MarylandMaryland Department of Labor, Licensing & Regulation
MassachusettsMassachusetts Office of Consumer Affairs and Business Regulation
MichiganMichigan Department of Insurance and Financial Services
MinnesotaMinnesota Department of Commerce
MississippiMississippi Department of Banking and Consumer Finance
MissouriMissouri Division of Finance
MontanaMontana Division of Banking & Financial Institutions
NebraskaNebraska Department of Banking and Finance
NevadaNevada Department of Business & Industry
New HampshireNew Hampshire Banking Department
New JerseyNew Jersey Department of Banking & Finance
New MexicoNew Mexico Regulation and Licensing Department
New YorkNew York Department of Financial Services
North CarolinaNorth Carolina Commissioner of Banks
North DakotaNorth Dakota Department of Financial Institutions
OhioOhio Department of Commerce
OklahomaOklahoma Banking Department
OregonOregon Division of Financial Regulation
PennsylvaniaPennsyvlania Department of Banking and Securities
Rhode IslandRhode Island Department of Business Regulation
South CarolinaSouth Carolina Attorney General
South DakotaSouth Dakota Division of Banking
TennesseeTennessee Department of Financial Institutions
TexasTexas Department of Banking
UtahUtah Department of Financial Institutions
VermontVermont Department of Financial Regulation
VirginiaVirginia State Corporation Commission
WashingtonWashington State Department of Financial Institutions
West VirgniaWest Virginia Division of Financial Institutions
WisconsinWisconsin Department of Financial Institutions
WyomingWyoming Division of Banking

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