Breaking: FinCEN Requires Cryptocurrency MSBs to Obtain Licenses
Stay Ahead of Regulations: Secure Your License Today
Industry-Changing Mandate Affects US Crypto Entities
Following strict adherence to federal Money Services Business (MSB) procedures, the Financial Crimes Enforcement Network (FinCEN) has announced a significant development for cryptocurrency MSBs operating in the United States. Effective immediately, these entities are required to obtain a license from FinCEN, a requirement that aligns with the classification of US cryptocurrency entities as Money Transmitters, a category of MSBs.
This mandate highlights the growing regulatory landscape surrounding virtual currency, with many states enacting specific laws to govern its use. As a result, any business that facilitates the exchange of fiat currency for bitcoins or exchanges one type of digital currency for another is considered a money transmitter. FinCEN defines money transmitters as individuals or entities offering money transmission services or participating in the transmission of funds.
Each state's cryptocurrency law establishes who qualifies as a money transmitter and whether they are operating within the state's jurisdiction. To ensure compliance, businesses launching crypto exchanges, remittance applications, or Web3 NFT marketplaces should adhere to both federal and state money transmitter regulations.
Our team is here to guide you through the licensing process, determine if your business qualifies as a cryptocurrency MSB/money transmitter, and provide expert advice on Anti-Money Laundering (AML) compliance. Stay ahead of the regulatory curve and secure your license to operate seamlessly in the evolving world of cryptocurrency.
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