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.