Eternity Law International News Cryptocurrency License in the USA

Cryptocurrency License in the USA

May 23, 2021

At the legislative level, the license for cryptocurrencies in the United States was secured in 2013. Then it was decided to lift the ban on cryptocurrencies and develop special provisions for their use. Cryptocurrencies in America are decentralized and used like regular money. Consequently, exchanges and other companies that carry out transactions with crypto-money must:

  • be registered as financial service providers;
  • have a license for cryptocurrencies in the United States;
  • report suspicious transactions to law enforcement.

Cryptocurrency taxes are also levied. Income from transactions with such funds is considered capital gains and is also subject to taxation in accordance with the rules of the United States Internal Revenue Service. Violation of the rules for exchanging such funds is considered a crime.

How individual states view cryptocurrency licensing rules

The United States of America is a real example of a federal country that has a 3-tier division of powers. Nearly all areas of the law are regulated at the federal, state, and local municipal level. The same applies to the license for cryptocurrencies in the United States, and the financial sector in general. Congress provides only a general outline of how to license cryptocurrency. Further, the parliaments of each state create their own personal, detailed rules, according to which the issuance of licenses of the financial plan is determined.

Since each individual state has its own rules for obtaining licenses, they are often very different in all regions of the state. This is where it becomes necessary to obtain permission in all individual states where the provision of exchange services is planned.

Difficulties in this issue are also brought in by the separate fact that in certain states, at the legislative level, the authorities have not yet developed an exact position regarding the regulation of cryptocurrency. Thus, in certain regions of the state, in theory, a license for cryptocurrencies in the United States is not required.

What should you pay attention to?

Obtaining a cryptocurrency license in the United States requires close attention to a number of details. If one or another legal nuance is not taken into account, the risk of refusal to issue a license increases significantly. Our experts are ready to help you in a situation of any complexity. Choosing the territory where the exchange will operate, the following points should also be taken into account:

  • whether there are licenses for crypto-money in general, for example, in New Mexico, Montana, and South Carolina, as distinct from other states, this area is not regulated by government authorities;
  • the amount of the authorized capital: in all states it is very different – from 1,000 to a million dollars;
  • the amount of capital for support and development: it also varies greatly in the regions – from a thousand dollars to 1 million;
  • taxes on income from cryptocurrency transactions, etc.

Documents required obtaining a license

As mentioned, all states have separate rules regarding obtaining licenses for crypto money, but in general they are quite similar. Often from entrepreneurs who wish to start dealing with the exchange of such financial units, a list of the following documents is required to obtain a permit:

  • full name of the company and legal address;
  • the name of the trade mark under which the cryptocurrency exchange plans to operate;
  • a complete list of offenses committed by the applicant in the last few months (this period differs from region to region);
  • informational data about operating courts, where the declaring person acts as any of the parties;
  • a list of financial services that were provided by the applicant in the past (if any), as well as services that are planned to be provided in the future;
  • a complete list of places where it is planned to provide services for which a license is obtained;
  • a list of specialists who are involved in working with clients;
  • information data on the current bankruptcy processes, where the applicant appears;
  • a sample client agreement.

From what was said above, we can conclude that obtaining a license for cryptocurrencies in the United States is a rather laborious process. The licensee needs not only knowledge of the laws of the federation, but also of the local laws of certain states, which is quite difficult if you are not a professional lawyer. Our specialists are ready to help your crypto business and become a reliable professional support for you. The experience of our team and interest in the success of cooperation is the key to obtaining a quick and high-quality result.

You could be interested

How to get investment fund license

Investment operations of hedge funds are covered by strict licensing in most countries. Only if this condition is met, the company receives permission to cooperate and cooperate with professional investors. Each jurisdiction has its own rules and procedures regarding how to get investment fund license. It is worth noting even in absence of a requirement...

Business structuring: specifics of commercial organization

Considering largest enterprises in the CIS and the European space, it can be revealed that the majority of them are owned by foreign investors. Simultaneously, bulk of such organizations are located in Luxembourg, Holland, Switzerland, and also in Cyprus. This means that for certain reasons, at some stages of fulfilling commercial activities, the owners of...

Asset Management Companies in Hong Kong

Hong Kong stands in one line together with such cities as London, Singapore and well-known as one of the well-known financial center of the world. Its location is a middle between West and East, which gives to Hong Kong obvious advantage as an international market. However, despite that Hong Kong is one of the international...

PI license in the Czech Republic

An authorized payment institution (API) in the Czech Republic is the perfect solution for pan-European and trans-border payment processing. It facilitates processing payments and money transfers of private individuals, companies, and internet merchants. To ensure the proper operation of such institutions and the protection of customer funds, the EU PSD entered force in 2007 and sets...

Ready-made company in USA

Starting a business in the United States is a dream for many aspiring foreign entrepreneurs worldwide. The USA offers a thriving market, a stable economy, and a plethora of opportunities. However, setting up a new company from scratch can be a daunting task. This is where the concept of buying a ready-made company comes into...

SEMI license in Cyprus

The Fintech industry in Cyprus has been developing quite rapidly over the past few years. The country has already formed a market for financial services, which is closely related to technology. This fintech sector is expected to show a rapid pace of development following the publication of the National Strategy for Distributed Ledger Technologies (DLT)....
Fill the blank:


Dreikonigstrasse, 31A, Stockerhof


Baseina street, 7


Grosvenor Gardens, 52


1629 K St. Suite 300 N.W.


Gediminas Avenue, 44A


Kesklinna linnaosa, Tuukri 19


Lochrin Square, 1


Jacovides Tower, 5 floor


Esplanade, 7 floor

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai


Level 42, Suntec Tower Three, 8 Temasek Boulevard


20 Martin Place


2609 Avenida da Boavista


Revaz Tabukashvili Str., N 45, area N 7