US Cryptocurrency License

In the United States, crypto-currency regulation began being devised at the legislative level in 2013 when the government made the decision not to ban them, but rather to create a legal basis for their use. Cryptocurrency in the United States is regarded as decentralized and they operate the same way as a fiat currency. This means that exchanges and other organizations undergoing operations with them are obliged:

  • to be registered as Money Services Businesses (financial services);
  • to receive licenses for such activity (bitlicense, USA);
  • to inform law enforcement authorities of transactions arousing suspicions;

Cryptocurrency taxation, which is equal to property taxes, is also regulated at the national level. Profits from operations involving it are viewed as capital gains profits and are taxed under the Internal Revenue Service of the USA. Violation of crypto-currency exchange and token placement regulation are deemed by the SEC as criminal acts (in 2017 it already initiated the first case over an ICO swindle).

 

Features of Obtaining Cryptocurrency Licensing in Different States

In the USA, cryptocurrency licenses are issued by the national regulation bureau FinCEN. The institution issues permits which also allow for the conduct of activities related to:

  • foreign exchange services;
  • background checks and the provision of prepaid access;
  • the issue and sale of traveler’s checks, remittances, and money transfers;
  • sales with prepaid access;

A cryptocurrency exchange license in the USA is issued either on the national level, validity throughout the entire country, or on the individual states level, valid in those states only. If the company plans to carry out a greater amount of activity in America, a general permit is more convenient. The nation-wide fee for it is 176, 226 dollars, plus an annual payment of 136,855 dollars.

While operating outside of the USA, a license which is valid in one state is sufficient. It will provide the right to open the necessary bank accounts and to conduct the relevant activities. The size of the government fee for this varies and is defined by the state authorities, starting at 200 dollars in Utah, Kansas, and Idaho, ranging all the way up to 7,000 dollars in Oklahoma (there are individually defined rates as well). In selecting the territory, organizations must also consider:

  • whether cryptocurrency licenses are provided there in general – the USA provides the right to regulation to state authorities; meanwhile, in New Mexico, Montana, and South Carolina, for instance, it is not provided for;
  • the necessary amount of the authorized capital for the company being registered and obtaining the license. This varies from 1,000 dollars in Hawaii to one million dollars in Pennsylvania;
  • The minimum capital amount for maintaining and developing business. There must be from 1,000 to one million dollars on beneficiaries’ personal or corporate accounts (however, for example, in Georgia, this requirement does not exist);
  • What profit tax rates resulting from cryptocurrency operations are established in the state and so on;
 

Our Services

The particular conditions of the activities and licensing as well as the amounts of payments and taxes change and being assured of the right choice calls for the help of experienced and skilled professionals. You can receive competent support from lawyers and experts in American taxation and crypto-currency regulation by contacting Diamont Law Company. The experts will:

    • analyze the situation and work out the optimal strategy for the customer’s requirements;
    • register the company in the USA;
    • help to open an account, collect documents, and verify their completeness and correctness;

The experts will also represent the customer in government agencies. “Diamont Law” means professional consultations and full-package practical support.

 

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DMITRII BONDARENKO

DMITRII BONDARENKO
DIRECTOR OF COMPANY

MAIIA RIAZANOVA

MAIIA RIAZANOVA
DIRECTOR OF THE COMPANY'S LEGAL DEPARTMENT

IGOR SMIRNOV

IGOR SMIRNOV
LAWYER, AML COMPLIANCE, FINANCIAL LAW

Arnold Woicehovski

Arnold Woicehovski
LAWYER