In this multi-part series, Santori gives a basic primer on the state of US law as it applies to digital currency entrepreneurs. In Part I, we covered the law of money transmission on the federal level in the United States. We bitcoin define about the BSA, AML and KYC.
We learned why money transmitter classification on the federal level has real consequences. Now, in Part II, I’ll explain why the state level is really where the action is. Recall that FinCEN registration is just that: registration. Fill out a form, click a button, and your business is registered.
Contrast this mere “registration” with full-blown “licensure”, which is required by state regulators. In the US, a business must comply with federal regulation and obtain licensure in any state whose regulation requires it. A money transmission license is not a right, but a privilege. Whether any particular state will consider a business worthy of such a privilege depends entirely on the state in question. This makes tricky business of planning a nationwide rollout. Must my digital currency business be licensed?