Cryptocurrency Laws and Regulations by State | Bloomberg Law

What are the cryptocurrency laws by state?

While many states regulate virtual currency under existing money sender rules, specific cryptocurrency laws and regulations vary state-by-state .
A license is required for selling or issuing payment instruments, stored value, or receiving money or monetary value for transmittance. “ Monetary value ” means a average of exchange, including virtual or decree currencies, whether or not cashable in money. ( Ala. Code § 8-7A-2 ; Ala. Code § 8-7A-5 )

Alaska Stat. § 06.55.990 ( 15 ) defines money services as, “ selling or issuing payment instruments or stored value, or receiving money or monetary value for transmission. ” The Alaska Division of Banking and Securities states, “ [ c ] ompanies dealing with decree and virtual currencies ( cryptocurrencies ) must apply for a money transmitter license, then embark into a circumscribed Licensing Agreement ( LLA ) with the State of Alaska. ”
The definition of a money sender is found at Ariz. Rev. Stat. § 6-1201 ( ). While the definition does not specifically apply to digital currency, exchanges Coinbase and Binance interpret it to require them to acquire Arizona money sender licenses .
Arkansas ’ s definition of money transmission expressly includes virtual currency ; A.C.A. § 23-55-102 ( 12 ) ( A ), and allows investment in virtual currency by money transmitters ; A.C.A. § 23-55-701 ( barn ) .
however, Arkansas has provided “ no-action ” letters to digital asset-issuing businesses freeing them from money transmittance license requirements, for example, In re Mythical, Inc. ( June 22, 2020 ) ( television plot inner currency ) ; In rhenium River Financial, Inc. ( May 21, 2020 ) ( selling own reserves of Bitcoin )
The Department of Financial Protection and Innovation has not decided whether to regulate digital currency transmission under California ’ s Money Transmission Act, see DFPI Statement re : Coinbase ( Jan. 27, 2015 ) ; DFPI Opinion Request ( Oct. 4, 2019 ) .
The DFPI regularly provides no-action letters regarding digital currentness businesses on its web site. Digital currency ATMs are often exempted, and a May 27, 2021 impression letter exempted a peer-to-peer digital currency transaction platform from money transmittance license .
Colorado ’ s 2018 interim steering requires licensing as a money sender when using digital currency as a requital system .
A money sender license is required when transmitting digital currency, see
Conn. Gen. Stat. § 36a-596 ( 18 ) ; Conn. Gen. Stat. § 36a-597. The licensee must express that it is dealing in virtual currency. Conn. Gen. Stat. § 36a-598 ( a ) ( intravenous feeding ). Connecticut may apply extra examination or requirements on virtual currentness money transmitters. Conn. Gen. Stat. § 36a-600 ( deoxycytidine monophosphate ), ( d ) ; Conn. Gen. Stat. § 36a-602 ( a ). money transmitters must hold reserves in the lapp type and come of virtual currency as all outstanding transactions. Conn. Gen. Stat. § 36a-603 ( bel ) .
Connecticut ’ s Department of Banking has issued advisory opinions stating that digital currentness exchanges are money transmitters, but digital currency “ ATMs ” are not. See Connecticut Department of Banking, “ Virtual Currency Money Transmission FAQs “
5 Del. C. § 2303 requires a license for the undefined give voice “ prosecute in the clientele of receiving money for transmission or transmitting the same. ” Virtual currency exchanges Coinbase and Binance maintain Delaware money vector licenses .
District of Columbia
Dealing in digital currentness is money transmission requiring a license under D.C. jurisprudence. See United States v. Harmon, 474 F. Supp. 3d 76, 89 ( D.D.C. 2020 ) .
A “ money vector ” under Fla. Stat. §560.103 ( 23 ) “ receives currency, monetary rate, or payment instruments for the purpose of transmitting the same by any means ” ; a Florida appellate court found that this includes trade in digital currency. State v. Espinoza, 264 So. 3d 1055 ( Fla. Dist. Ct. App. 2019 ). See besides Fla. Stat. §896.101 ( farad ) ( the Florida Money Laundering Act ). Florida ’ s amnesty period to comply with the Espinoza decision ends Dec. 31, 2021. See “ Industry Alert : amnesty period for virtual Currency Sellers “
tied before Espinoza, Florida considered the sale of a digital nominal tied to the ownership of a gram of gold to be governed by money sender laws. See In ra G-Wallet Corp. ( June 5, 2019 ). Florida has not yet considered whether money sender laws apply to digital tokens tied to less fungible objects of rate .
The Florida Financial Technology Sandbox allows for the sandbox permission to substitute for a money vector license during the license period and relaxes a few other money vector requirements. Fla. Stat. §559.952 ( 4 ) ( a ) ( 3 ) through ( 14 )
Georgia ’ s money transmission laws define “ money infection ” as pick up or transmitting “ monetary respect, ” and “ virtual currency ” is specifically defined as “ a digital representation of monetary value. ” O.C.G.A. §7-1-680 ( 13 ), ( 26 ). therefore, a license is required under O.C.G.A. §7-1-681, and Georgia regulators have the power to enact virtual currency-specific rules. O.C.G.A. §7-1-690 .
See besides Georgia Department of Banking and Finance, “ Money Transmission and the Sale of Payment Instruments “ ; californium. “ Department of Banking and Finance Orders CampBX, Bitcoin Trading Platform, to Cease and Desist “ ( July 26, 2018 )
Haw. Rev. Stat. § 489D-4 defines money infection with the broad “ receiving money or monetary value for transmission, ” but digital currentness businesses are, through June 30, 2022, rather given license through the Digital Currency Innovation Lab in regulate to determine what license is necessary. See “ DCIL FAQs “ ( Aug. 26, 2021 )
Idaho considers virtual currentness exchanges to fall under the definition of money infection requiring a license. See Idaho Department of Finance .
The Department of Finance regularly issues no-action letters to businesses such as digital currentness ATMs freeing them from licensing requirements. Redacted no-action letters can be found on the Department of Finance ’ s world wide web locate .
The definition of “ money transmitter ” in 205 ILCS 657/5 does not expressly note digital assets ; however, the Department of Financial and Professional Regulation released steering as to when a digital currentness business must register as a money sender. See Digital Currency Regulatory Guidance ( June 13, 2017 ) .
The Division of Financial Institutions regularly issues “ non-binding statements ” to virtual currentness businesses ruling on whether the businesses must be licensed. These statements can be found on the Department of Finance ’ s web web site .
The definition of money transmission in Ind. Code § 28-8-4-13 does not expressly mention virtual assets and may exclude virtual assets, including virtual currency, if sold for any determination other than immediately facilitating a requital .
According to the Indiana money sender licensing FAQ on NMLS, a virtual currentness rally does not generally require a money vector license .
There is no exclusion for digital currency businesses from Iowa ’ s Uniform Money Services Act in Iowa Code § 533C.103. Digital currency dealers such as Coinbase have obtained money services licenses from the Iowa Department of Banking .
K.S.A. § 9-508 ( hydrogen ) ‘ randomness definition of money transmittance is broad adequate to include digital currency .
however, under current administrative guidance a money transmitter license is not required when transmitting a decentralized digital currency ; should the infection of digital currentness include the participation of sovereign currentness, a money sender license may be required. See Office of the State Bank Commissioner, “ Regulatory Treatment of Virtual Currencies Under the Kansas Money Transmitter Act “ ( May 18, 2021 ) .
KRS 286.11-003 defines money transmission as “ receiving money or monetary value to transmit…money or monetary value to another location inside or outside the United States by any and all means ” which does not expressly include or exclude digital currentness. Digital currentness dealers such as Coinbase have obtained money services licenses from the Department of Financial Institutions .
The Louisiana Virtual Currency Businesses Act, La. Rev. Stat. §§ 6:1381 to 6:1394, provides a license system for virtual currentness businesses. There is a farseeing list of exceptions to licensing in La. Rev. Stat. § 6:1383 ( B ) and ( C ), including all virtual currency regulated by Louisiana securities law and personal or academic use of virtual currency to buy goods and services .
Some exceptions may fall under the broad definition of money infection under La. Rev. Stat. § 6:1032 ( 13 ) ; Louisiana ’ randomness Office of Financial Institutions however maintains its 2014 guidance stating that virtual currentness exchangers require a money transmitter license .
As of Oct. 18, 2021, “ virtual currency ” is explicitly included in Maine ’ s definition of money transmission, 32 MRSA §6102 ( 10 ) .
As of October 1, 2021, the definition of “ money transmission ” in Md. Code, Fin. Inst. § 12-401 ( normality ) ( 1 ) includes “ receiving…other value that substitutes for currentness ” ( “ currency ” having the definition under 31 C.F.R. § 1010.100 ( meter ) as decree currency ) and transmitting it .
According to guidance on the Maryland Office of the Commissioner of Financial Regulation web site, “ an administrator or exchanger that accepts and transmits a convertible virtual currency or buys or sells convertible virtual currentness for any reason is a money vector under federal regulations. ” The Office besides states on its regulate industries page that its regulation of money transmission is “ including transmission of virtual currentness. ”
Digital currentness businesses such as Binance and Coinbase presently maintain Maryland money vector licenses .
Massachusetts ’ s regulation of money transmission is alone money transmittance to extraneous countries. See 209 CMR 45.02 ;, “ Apply for a Money Transmitter License “ .
In a 2020 impression letter, the Massachusetts Department of Banking found that transactions where decree currency was exchanged for virtual currency between two parties across international borders, without more, was not money transmission requiring licensure. See Division of Banks, Opinion 19-008 ( Jan. 17, 2020 ). A digital wallet military service was besides found, on its facts, not to require a license. See Division of Banks, Opinion 20-003 ( May 22, 2020 ) .
Selected Department of Banking opinion letters on virtual currency can be found on the Department ’ s web site .
MCL 487.1003 ( c ) defines “ money transmission ” as “ selling or issuing payment instruments or stored value devices or receiving money or monetary value for infection. ” Michigan ’ s Department of Insurance and Financial Services FAQs states that holding funds in an “ e-wallet ” is money infection requiring a license. 2019 steering for consumers and industry states that if federal regulators would require an “ administrator or exchanger ” to get a money transmittance license, one is required under Michigan law .
virtual currency exchanges such as Binance and Coinbase maintain Michigan money transmittance licenses .
Money transmission under Minn. Stat. § 53B.03 is defined as, “ selling or issuing requital instruments or engaging in the commercial enterprise of receiving money for infection or transmitting money. ” Licenses are required for “ businesses that cash checks, convey money, own and manoeuver ATMs, and provide electronic funds transfers, ” according to the Minnesota Commerce Department .
Some virtual currentness exchanges such as Binance and Coinbase maintain Minnesota money transmission licenses.

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Miss. Code § 75-15-3 ( f ) defines “ monetary value ” as “ a medium of substitute, whether or not redeemable in money, ” and Miss. Code § 75-15-3 ( gigabyte ) defines “ money transmission ” to include receiving monetary value for transmittance .
Some virtual currency exchanges such as Binance and Coinbase maintain Mississippi money infection licenses .
Missouri ’ s “ Sale of Checks ” jurisprudence defines a “ check ” as “ any electronic means of transmitting or paying money. ” Mo. Rev. Stat. § 361.700 ( 2 ) ( 1 ) .
Some virtual currentness exchanges such as Binance maintain Missouri Sale of Checks licenses .
money transmitters do not need a license in Montana, according to the Department of Banking and Financial Regulations .
Nebraska ’ s money transmission law defines “ monetary prize ” as “ a medium of exchange, whether or not cashable in money, ” Neb. Rev. Stat. § 8-2715, and consequently encompasses digital currency .
effective Oct. 1, 2022, state-chartered “ digital asset depository institutions ” have the lapp exemption from money infection registration as early banks. Neb. Rev. Stat. § 8-2724 .
Slot machines and other “ mechanical entertainment cash devices ” may alone accept decree currency or vouchers for lapp ; virtual currency is specifically prohibited. 316 north atlantic council 54-102.05B ( 5 ) .
The definition of “ discipline ” in NRS § 671.010 ( 1 ) includes any “ instrument used for the infection or payment of money, ” and a license is required for “ sell or issuing checks ” or “ receiving for infection or transmitting money or credits. ” NRS § 671.040 ( 1 ) .
The Financial Institutions Division released a “ statement on regulation of cryptocurrency in Nevada “ stating that whether a business is a money transmitter is determined on a individual basis ; however, “ any entity that facilitates the infection of or holds fiat or digital currentness by direction of brick-and-mortar, booth, mobile, internet or any other means, should contact the NFID to request a licensure determination. ”
Nevada besides has a sandbox, the “ Regulatory Experimentation Program for Product Innovation ” NRS §§ 657A.100 to 657A.620
New Hampshire
A business that entirely deals in “ convertible virtual currency ” as defined by RSA § 399-G:1 ( VII ) is excuse from money sender license, although even bound New Hampshire ’ s general unfair barter practices law and regulated by the state Department of Justice ’ s Consumer Protection Bureau. RSA § 399-G:3 ( VI ) ( a ) .
however, if a business deals in early forms of monetary value, RSA § 399-G:1 ( XV ) expressly includes virtual currentness so the clientele must be licensed under RSA § 399-G:2 ; see besides New Hampshire ’ s bank department policy instruction .
New Jersey
The definition of “ payment instrument ” in N.J.S.A. 17:15C-2 is broad enough to include virtual currentness in New Jeresy ’ s money infection licensing scheme. virtual currency exchanges Binance and Coinbase both maintain New Jersey money transmitter licenses .
New Mexico
Although virtual currentness is not explicitly mentioned in New Mexico ’ s money services occupation regulation, see NMSA 1978 § 58-32-102, the New Mexico Regulation and Licensing Department considers dealing in virtual currentness to require a license. See fiscal Institutions Division, Money Services Businesses ; FAQs .
New York
New York ’ randomness Department of Financial Services has a special “ BitLicense ” for virtual currency businesses promulgated at 23 NYCRR §§ 200.1 to 200.22. closely any commercial transmit, sale, purchase, or issue of virtual currency requires a license. 23 NYCRR 200.2 ( q ) .
Businesses that engage in the transmittance of decree currentness adenine well as virtual currency require both a BitLicense and a traditional money sender license as per N.Y. Banking Law § 641. See BitLicense FAQs .
See besides the Department of Financial Services ’ page on virtual currentness .
North Carolina
North Carolina ’ second definition of money transmittance requiring a license expressly includes virtual currency. N.C.G.S. § 53-208.42 ( 13 ) ( bacillus ), ( 15 ). however, an express agent of the payee is hush exempt from licensure even if paid in virtual currentness. N.C.G.S. § 53-208.44 ( 8 ). See “ Money Transmitter Frequently Asked Questions. ”
Money transmitter licensees who deal in virtual currentness may have to obtain an increased surety bond. N.C.G.S. § 53-208.47 ( five hundred ). Investments in virtual currency by licensees may be verified at any time by the Commissioner of Banks. N.C.G.S. § 53-208.48 ( degree centigrade ) .
Ohio Rev. Code § 1315.01 ( G ) ‘ second definition of “ money infection ” encompasses closely every transmission of monetary value. The money transmission licensing application provided by the Ohio Department of Commerce requires a principal in virtual currentness to provide a third-party audit of the licensee ’ s computer systems .
The definition of “ money transmitter ” in 6 O.S. § 1512 ( 7 ) includes any transmittance of funds across an electronic network. many virtual currency exchanges maintain Oklahoma money transmission licenses .
In the Oregon money transmitter laws, ORS 717.200 ( 10 ) ( b-complex vitamin ) defines “ money ” as a medium of exchange that “ represents measure that substitutes for currency. ” Oregon licenses digital currency exchanges as money transmitters .
Although 7 P.S. § 6101 defines “ money ” as a “ intersection that is broadly recognized as a medium of rally ” and a “ transmission legal document ” to include “ electronic transfer, ” the Pennsylvania Department of Banking and Securities issued guidance holding that entirely decree currency is “ money ” and virtual currency trade platforms are exempt .
Rhode Island
virtual currency transactions are expressly “ currentness transmission ” under Rhode Island law. G.L.1956 § 19-14-1 ( 4 ) ( two ). Currency transmission requires a license, G.L.1956 § 19-14-2 ( 3 ) ; however, there are a numeral of exceptions for specific situations in G.L.1956 § 19-14.3-1. Rhode Island has a list of mandate disclosures virtual currency businesses must make to their customers. G.L.1956 § 19-14.3-3.5. A Rhode Island licensee must maintain enough virtual currency to satisfy all of its customers ’ entitlements. G.L.1956 § 19-14.3-3.6 .
See besides “ Rhode Island Currency Transmission Law : frequently Asked Questions ”
South Carolina
The South Carolina Attorney General ’ s Money Services Division “ views virtual currencies as lacking the characteristics necessity to be a medium of commute ” and therefore virtual currentness businesses do not need to be licensed. See “ Money Services FAQs “ ; interpretative letter of Dec. 5, 2018 .
virtual currency ATMs are specifically exempt as per an administrative order. Order no. MSD-19003 ( Sept. 6, 2109 ) .
South Dakota
South Dakota considers the term “ monetary respect ” in SDCL 51A-17-1 ( 13 ) to include virtual currency. See Division of Banking, “ Virtual Currency Transmission in South Dakota “ ( May 25, 2019 ) .
Tennessee does not consider cryptocurrency itself “ money transmission, ” but many acts of converting virtual currency into decree currency accrue under the definition of money transmission and must be licensed. Tennessee Department of Financial Institutions, “ Regulatory Treatment of Virtual Currencies Under the Tennessee Money Transmitter Act “ ( Dec. 16, 2015 ) .
The Texas Department of Banking finds that exchange or transfer of most virtual currencies, standing alone, is not money infection requiring a license. however, trade in stablecoins, or use of a third-party exchanger ( including virtual currency “ ATMs ” ), must be licensed as money infection. See supervisory Memorandum 1037, “ Regulatory Treatment of Virtual Currencies Under the Texas Money Services Act, ” Apr. 1, 2019 .
“ Blockchain tokens ” are explicitly excluded from Utah ’ s money transmitter definition. Utah Code § 7-25-102 ( 9 ) ( b-complex vitamin ) .
The Virginia Bureau of Financial Institutions holds that virtual currencies are not included in the definition of money transmittance under Va. Code § 6.2-1900 although transactions that besides involve the transfer of decree currency may be. “ Notice to Virginia Residents Regarding virtual Currency “ ( Aug. 25, 2021 ) .
RCW 19.230.010 ( 18 ) specifically states that virtual currency is included in the definition of money infection. however, the follow through regulations say that storage of virtual currentness without the unilateral power to transmit is not money transmission. WAC 208-690-015 ( 4 ) .
virtual currentness money transmitters must have a third party security audit of their computer systems. RCW 19.230.040 ( 5 ) ; WAC 208-690-030 ( 7 ). There are besides virtual currency-specific investment and disclosure requirements ; RCW 19.230.200 ( 1 ), RCW 19.230.370, WAC 208-690-085 ( 4 ), WAC 208-690-205 ( 3 ). There is a offprint minimal net worth prerequisite for licensees that besides store virtual currency. wac 208-690-060 ( 2 ) .
See besides Washington Department of Financial Institutions, “ Industry Guidance for Virtual Currency, Cryptocurrency, and Digital Assets ”
West Virginia

  1. Va. Code § 32A-2-1(6)considers “currency transmission” and “money transmission” synonymous, and both include the transfer of “value that substitutes for money.”

however, a licensee under the West Virginia Fintech Regulatory Sandbox does not need to apply for a classify money transmitter license. W. Va. Code § 31A-8G-4 ( five hundred ), ( vitamin e ) .
The Wisconsin Department of Financial Institutions interprets its assurance under Wis. Stat. § 217.03 as not extending to the transmission of virtual currency, although dealers in virtual and decree currency probable need a license for the latter. See “ Sellers of Checks. ”

“ Buying, sell, issuing, or taking detention of requital instruments in the form of virtual currency or receiving virtual currency for transmittance to a placement within or outside the United States by any means ” is excuse from licensing as money transmission under Wyoming law. Wyo. Stat. § 40-22-104 ( a ) ( six ) .
furthermore, The Wyoming Financial Technology Sandbox, Wyo. Stat. §§ 40-29-101 through 40-29-109 ; 021.0008.1 Wyo. Code R. §§ 1 to 8, explicitly applies to money transmission license. Wyo. Stat. § 40-22-104 ( barn ) .

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