In the United States, there is no specific license designated specifically for electronic money institutions (EMIs), unlike the licensing system in place in the UK or European Union. Instead, the US has Money Services Businesses (MSBs) which must obtain a money transmitter license in order to operate in each state. These MSBs are responsible for managing and holding electronic funds, such as in a wallet or designated account, and the ability to do so depends on their relationship with their banking partner as well as the original business plan they submitted to the financial regulator when applying for the money transmitter license.
The money transmitter license is generally broad and generic in nature, and its application depends on the original business plan submitted to the state’s financial regulator. If changes or additions to the original license, such as new products or services, are to be made, in most cases, it is simply necessary to inform the state regulator. In some instances, it may not even be necessary to inform the state regulator if the services for issuing e-money are already covered by the existing license. It is worth noting that there is no specific EMI (e-money) license in the United States.
This page was last updated on January 4, 2023.