United States

Key Requirements

• Register with FinCEN as Money Services Business (MSB) covering virtual currency activities per 31 CFR § 1022.210.
• Establish written AML/CFT program with designated compliance officer, audit procedures, and training requirements per 31 CFR Part 1022.
• Implement customer due diligence (CDD) program including beneficial ownership identification and verification for all customers.
• Implement Suspicious Activity Reporting (SAR) procedures with reporting to FinCEN within 30 days of detection of transactions exceeding $5,000.
• Maintain transaction records including customer identity, transaction amount, date, and destination for minimum 5 years.
• Register with applicable state regulators and maintain minimum net capital requirements per state money transmitter laws (typically $25,000-$500,000).
• Establish surety bond requirements per state regulations covering customer fund protection (typically $25,000-$500,000 per state).
• Implement written policies for customer fund handling, segregation, and protection against business failure per state requirements.

Application Process

1. 1.Complete FinCEN MSB registration form (FinCEN 107) online through FinCEN's BSA E-Filing System with organization details.
2. 2.Develop comprehensive AML/CFT program including compliance policies, customer due diligence procedures, and suspicious activity detection procedures.
3. 3.Establish operating capital and secure surety bond coverage for state money transmitter license amounts.
4. 4.Identify applicable states where virtual currency exchange/transmission services will be offered and compile state-specific requirements.
5. 5.Submit state money transmitter license applications with application fees, capitalization evidence, and AML/CFT documentation (varies 48+ states).
6. 6.Respond to state regulatory inquiries and examinations regarding AML/CFT procedures, customer verification, and capital adequacy.
7. 7.Receive FinCEN MSB registration confirmation and state money transmitter license approvals before commencing operations.

Ongoing Obligations

• File annual FinCEN MSB registration renewal to maintain active status (currently voluntary but increasingly required).
• Report Suspicious Activities (SARs) to FinCEN within 30 days of detection with detailed transaction and customer information.
• Conduct quarterly or annual AML/CFT compliance audits and document findings with management sign-off.
• Maintain complete transaction records with customer identity information, amounts, dates, and destination for minimum 5 years.
• Update and maintain written AML/CFT policies addressing emerging risks, staff training, and compliance procedures.
• File annual certifications of compliance with state money transmitter regulations and capital maintenance per state requirements.
• Respond to regulatory inquiries and examination requests from FinCEN and state regulators within specified timeframes (typically 10-30 days).

Key Requirements

• Maintain minimum net capital requirements per state regulations typically ranging USD 25,000-$500,000 with monthly verification.
• Secure surety bonds covering customer fund protection per state requirements (typically matching or percentage of net capital).
• Establish written customer fund handling procedures including segregation from operating accounts and deposit with FDIC-insured institutions.
• Implement comprehensive AML/CFT compliance program including customer due diligence, transaction monitoring, and suspicious activity reporting.
• Maintain detailed transaction records with customer identification, amounts, dates, and destination for minimum 5-7 years per state requirements.
• Implement cybersecurity and operational resilience procedures including incident response planning and customer data protection per state standards.
• Conduct annual examinations or quarterly certifications of regulatory compliance and capital adequacy per state examination schedule.
• Designate compliance officer responsible for AML/CFT program oversight, training, and periodic policy updates.

Application Process

1. 1.Identify and compile specific requirements for each state where services will be offered (requirements vary significantly across 48+ states).
2. 2.Prepare detailed application including business plan, ownership/management information, AML/CFT program, and financial projections.
3. 3.Establish net capital requirement by opening business bank accounts and documenting capital deposit or shareholder commitment letters.
4. 4.Secure surety bond quote matching state requirement amount and obtain bond commitment from licensed bonding company.
5. 5.Submit state application with application fee, capitalization evidence, surety bond proof, and compliance documentation.
6. 6.Respond to state regulatory inquiries regarding operational procedures, customer fund handling, and AML/CFT compliance.
7. 7.Receive state money transmitter license approval and register with relevant state agencies before commencing service delivery.

Ongoing Obligations

• Maintain minimum net capital requirement monthly with quarterly or annual verification submitted to state regulator.
• Renew surety bond annually before expiration ensuring continuous coverage without lapse.
• Maintain complete transaction records including customer identification and transaction details for 5-7 years per state requirements.
• File annual renewal applications with renewal fees and updated compliance certifications per state schedule.
• Report changes to ownership, management, business location, or service offerings to state regulators within 30-60 days.
• Respond to state regulatory examinations and inquiries regarding operations, AML/CFT compliance, and customer fund handling.
• Conduct annual AML/CFT program review and update compliance procedures addressing identified risks or regulatory guidance changes.

Key Requirements

• Register with SEC as broker-dealer under Securities Exchange Act Section 15 covering crypto securities trading activities.
• Maintain minimum net capital of USD 25,000-$250,000+ per SEC Rule 15c3-1 depending on activities and trading strategies.
• Register with self-regulatory organization (FINRA) and comply with FINRA Rules including suitability, supervision, and continuing education.
• Establish written supervisory procedures covering customer interactions, order entry, trading compliance, and sales practice oversight.
• Implement customer protection through compliance with Regulation M, anti-market manipulation, and insider trading detection procedures.
• Maintain segregated customer accounts and comply with customer protection rule requiring net capital coverage of customer balances.
• Conduct quarterly net capital certifications and annual financial reporting with audited financial statements per SEC requirements.
• Implement comprehensive training and continuing education for registered representatives under FINRA Rule 1013 and 1015.

Application Process

1. 1.Prepare comprehensive business plan including ownership structure, management bios, trading/advisory procedures, and financial projections.
2. 2.Complete SEC Form BD (Broker-Dealer Application) detailing organizational structure, business activities, and compliance procedures.
3. 3.Establish capitalization meeting minimum net capital requirements with documented bank accounts and equity capital infusions.
4. 4.Submit Form BD to SEC with supporting documentation including organizational charts, compliance policies, and financial statements.
5. 5.Register with FINRA by completing Form 8-A or Form 8-B and submitting FINRA application with fees and supporting documentation.
6. 6.Engage with SEC and FINRA through application review period responding to comment letters and examination requests.
7. 7.Obtain SEC authorization and FINRA membership approval before commencing broker-dealer activities.

Ongoing Obligations

• Maintain minimum net capital at all times with quarterly calculations submitted to SEC Form X-17A-5 Part III.
• File annual SEC Form X-17A-5 with audited financial statements, net capital certifications, and operational updates.
• Comply with FINRA continuing education requirements for all registered representatives with documentation of training completion.
• Respond to SEC and FINRA examination requests and regulatory inquiries within specified timeframes (typically 10-15 days).
• File amendments to Form BD within 30 days of material changes to ownership, management, or business activities.
• Conduct annual supervisory reviews of compliance procedures and update written supervisory procedures addressing identified gaps.
• Monitor and report trading violations, customer complaints, and regulatory matters to SEC and FINRA per reporting rules.

Key Requirements

• Establish capital reserve determined by DFS based on assessment of business risk, typically minimum USD 100,000-$500,000.
• Develop comprehensive operating procedures covering virtual currency custody, transmission, exchange, or control activities per 23 NYCRR § 200.2.
• Implement cybersecurity program per 23 NYCRR § 200.12 including encryption, access controls, incident response, and annual penetration testing.
• Maintain segregated customer virtual currency assets in custody arrangements with independent verification and regular reconciliation.
• Implement comprehensive AML/CFT program exceeding federal requirements with enhanced due diligence for high-risk customer categories.
• Establish written procedures for customer asset protection, insurance coverage, and business discontinuance with customer fund distribution procedures.
• Implement transactional analysis system identifying patterns indicating illicit activity with automated blocking and investigation procedures.
• Conduct annual third-party security audits with documented findings and management remediation of identified vulnerabilities within 30 days.

Application Process

1. 1.Prepare comprehensive business plan addressing all 23 NYCRR Part 200 requirements including operations, governance, and compliance procedures.
2. 2.Establish capitalization meeting DFS assessment with documented business bank accounts and equity funding sources.
3. 3.Develop detailed cybersecurity program documentation including technology architecture, access controls, and incident response procedures.
4. 4.Prepare comprehensive compliance framework including AML/CFT procedures, customer due diligence templates, and transactional analysis methodologies.
5. 5.Prepare detailed organizational and management structure documentation with management team bios and compliance experience descriptions.
6. 6.Submit BitLicense application to DFS including all supporting documentation and application fees.
7. 7.Engage with DFS during 18-24 month review period responding to detailed information requests, document reviews, and regulatory discussions.
8. 8.Receive DFS approval and BitLicense issuance before commencing virtual currency activities in New York.

Ongoing Obligations

• Maintain capital reserve throughout licensing period with quarterly capital calculations and annual DFS certification of adequacy.
• Conduct annual cybersecurity audits by qualified third parties with documented findings and remediation within 30 days.
• Report cybersecurity incidents and material breaches to DFS within 72 hours of discovery with investigation details.
• Maintain AML/CFT program with annual compliance audits and suspicious activity reporting to DFS and FinCEN.
• File annual renewal application with updated financial statements, compliance certifications, and operational updates.
• Notify DFS of material changes to ownership, management, business location, or service offerings within 10 days.
• Maintain records of all virtual currency transactions and customer accounts for minimum 7 years available for DFS inspection.

Key Requirements

• Register with SEC if managing USD 150+ million in crypto assets for clients or if providing discretionary advisory services.
• Maintain fiduciary duty to clients with full disclosure of conflicts of interest, compensation arrangements, and advisory service limitations.
• Establish written investment advisory contract with each client detailing services, fees, compensation methods, and termination procedures.
• Implement compliance program addressing regulatory requirements, conflicts of interest, insider trading, and client asset protection.
• Maintain arrangements with qualified custodians for client asset custody with written custody agreements per SEC Rule 15c2-1.
• Implement fair valuation procedures for client assets with documented methodologies and periodic independent valuation reviews.
• Prepare and file Form ADV (Parts 1A/1B/2A/2B) with annual updates and Form ADV-E (electronic filing) reflecting material changes.
• Conduct annual compliance reviews with documented findings and board-level approval of compliance program and performance.

Application Process

1. 1.Complete SEC Form ADV (Part 1A) providing adviser firm information, ownership structure, and regulatory history.
2. 2.Prepare Form ADV Part 2 (Adviser Brochure) detailing advisory services, fee arrangements, conflicts of interest, and regulatory disclosures.
3. 3.Establish custody arrangements with SEC-qualified custodian and obtain custodian acknowledgment letter confirming custody arrangement.
4. 4.Develop written compliance policies covering fiduciary obligations, conflicts of interest management, and client asset protection.
5. 5.File Form ADV and Form ADV-E (if applicable) through IARD system with registration fee (USD 40-225 depending on AUM).
6. 6.Obtain SEC approval and receive Investment Adviser CRD registration confirmation.
7. 7.Deliver Form ADV Part 2 to clients prior to service delivery or at account opening per SEC requirements.

Ongoing Obligations

• File Form ADV amendments within 90 days of material changes to advisory services, fees, conflicts, or organizational structure.
• Maintain custody arrangements with SEC-qualified custodian with annual custody letters confirming ongoing custody status.
• Conduct annual compliance reviews with documented assessment of procedures, conflicts management, and client protection effectiveness.
• Update Form ADV Part 2 annually with current information and deliver updated Brochure to clients within 120 days of fiscal year-end.
• Maintain detailed client records including investment objectives, suitability analysis, transaction history, and performance reporting.
• Report any regulatory violations, customer complaints, or material business changes to SEC through Form ADV amendments.
• Maintain insurance coverage including Errors & Omissions and Fiduciary Liability with minimum limits of USD 1,000,000.

Key Requirements

• Maintain broker-dealer registration as prerequisite with SEC and FINRA before registering ATS per Regulation ATS § 242.300.
• File Form ATS-N with SEC detailing ATS operations, trading procedures, market surveillance, and fee arrangements per Regulation ATS.
• Establish written trading procedures including order entry, matching algorithms, execution, and settlement rules that are fair and non-discriminatory.
• Implement comprehensive market surveillance program monitoring for market abuse including price manipulation, wash trading, and spoofing per Regulation SHO.
• Maintain order book transparency with published order book information or price quotations for all trading pairs.
• Establish position limit controls preventing market participant dominance or excessive concentration in particular crypto securities.
• Implement documented procedures for participant admission, suspension, and termination with objective criteria and fair hearing rights.
• Conduct quarterly trading rule compliance audits and annual independent operational resilience assessments covering systems availability.

Application Process

1. 1.Complete SEC Form ATS-N (Regulation ATS application) detailing ATS operations, technology platform, and trading procedures.
2. 2.Prepare detailed written trading rules specifying order types, matching methodologies, pricing procedures, and settlement arrangements.
3. 3.Document market surveillance program including trading pattern monitoring, abuse detection, and investigation procedures.
4. 4.Establish position limit controls and documented procedures for participant risk management.
5. 5.File Form ATS-N with SEC including all supporting documentation, trading rules, and compliance procedures.
6. 6.Obtain SEC approval of ATS operations and Form ATS-N filing before commencing trading.
7. 7.Publish trading rules and commence operation of ATS under SEC regulatory oversight.

Ongoing Obligations

• File Form ATS-N amendments within 10 days of material changes to trading procedures, fee structures, or operational processes.
• Maintain and enforce written trading rules with documentation of rule modification review and member notification.
• Monitor trading activity for market abuse with documented surveillance logs and investigation reports available for SEC review.
• Maintain detailed participant records and trading activity records for minimum 6 years available for SEC examination.
• Conduct quarterly trading rule compliance reviews and annual independent operational resilience assessments.
• File annual financial reports and compliance certifications with SEC demonstrating operational adequacy and capital maintenance.
• Report material trading violations, market manipulation incidents, and technological system failures to SEC within specified timeframes.