Money transmitter - Wikipedia
The meeting also helps prospective applicants prepare an application that meets all the requirements of California and federal law. To give a concrete example, New York's state money transmission laws require that money transmitters be licensed, but do not even bother defining "money".
The Quick Guide To Money Transmitter Licenses - Surety Bonds
This makes tricky business of planning a nationwide licensing rollout because, by and large, state regulatory bodies have offered little guidance to Bitcoin businesses. Contrast this mere "registration" with full-blown "licensure which is required by state regulators. State Money Transmitter Obligations, once filed, states will not approve all applications for licensure. Make no mistake, the function of this letter is not merely education; it is advocacy.
How to get Money Transmitter License coverage for your Startup?
A New York money transmitter must carry at least a 500,000 surety bond, and bonding agents will require a recurring yearly payment of 2-10 of the total bond amount, depending on the personal credit rating of the bond's guarantor. LicenseLogix can navigate the license requirements for Money Transmitters by helping you obtain all the licenses and registrations you need and managing your ongoing license renewals. When entrepreneurs talk about stifling innovation, this is precisely what they mean. Any business performing money transmission is subject to money transmitter license requirements. Get a Free Money Transmitter Bond".
Bitcoin Law: Money transmission on the state level in the
Businesses that accept Bitcoin from one person and send it to another (or back to the same person) are money transmitters, and are not exempt from money transmission regulation simply because they do not deal in fiat currency. But others have the potential to unseat inefficient, entrenched incumbents, to connect the unbanked to the world financial system, and to generally do good for the country and the world with trivial AML or consumer protection risks.
Who needs a money transmitter license?
This principle has special applicability to bitcoin businesses. A request for ruling must, of course, accurately describe the business plan.
Money Transmitters - California Department of Business Oversight
Currently, 49 of the 50 states require money transmitters to file a surety bond. Thus, a lawyer's survey cannot offer absolute certainty.
What is Money Transmission and Why Does it Matter?
For example, if a money transmitter has a principal location in California but conducts money transmission business in 37 other states, the transmitter must be bonded in all 37 states in addition to California. A bitcoin business located in New York likely services each of its customers in much the same way, whether that customer lives in New York, Nevada, Nigeria or Norway.