Crypto Compliance Attorneys
Licensing, registration, and compliance programs for businesses that hold, move, exchange, or issue digital assets, anywhere in the United States.
A crypto business does not get to choose which regulator it answers to. The Bank Secrecy Act rules reach it if it accepts and transmits value. The securities laws reach it if what it handles is a security. State money transmission statutes and, in New York, the virtual currency regulation reach it based on where its customers are. Compliance means knowing which of those apply and building the licences, registrations, and programs each one requires.
Industria Business Lawyers advises exchangers, custodians, wallet providers, payment platforms, token projects, and operating companies anywhere in the United States on the full set: whether the business is a money transmitter, whether FinCEN registration and a written anti money laundering program are required, which state licences apply, whether the securities laws are engaged, and what the documentation has to look like for a bank, an examiner, or an acquirer. This page is the overview. The specific analyses each have their own page.
Every model is different, and not every crypto business triggers every rule. The work is in finding out which ones apply to yours before someone else does.
Crypto Compliance Questions We Handle
Four frameworks, each with its own definition of who is covered.
Money Transmitter Status
Under 31 CFR 1010.100(ff)(5), a money transmitter is a person that provides money transmission services, meaning the acceptance of currency, funds, or other value that substitutes for currency from one person and the transmission of it to another location or person by any means, and whether a person is one is a matter of facts and circumstances. FinCEN guidance FIN-2019-G001 states that exchangers and administrators of convertible virtual currency generally qualify as money transmitters while users do not. Our money transmitter licensing page covers the analysis.
FinCEN Registration and the AML Program
Under 31 CFR 1022.380, each money services business must register with FinCEN whether or not it is licensed by any state, and under 31 CFR 1022.210 must develop, implement, and maintain a written anti money laundering program commensurate with its risks. Our FinCEN registration page and AML compliance page cover the filing and the program.
State Money Transmission Licences
Each state decides whether a licence is required and what exemptions apply. Florida, Texas, New York, Massachusetts and the District of Columbia each prohibit engaging in money transmission without a licence from their own regulator. Some states provide an agent of payee exemption; others do not. Our agent of payee page covers the exemption state by state.
New York's Virtual Currency Licence
New York provides that no person shall, without a licence obtained from the superintendent, engage in any virtual currency business activity, which its regulation defines to include receiving virtual currency for transmission, storing or holding custody of it on behalf of others, buying and selling it as a customer business, and controlling or issuing it, where the activity involves New York or a New York resident. A business that serves New York analyses this regime separately from money transmission.
Securities Status of the Asset
Section 2(a)(1) of the Securities Act defines a security to include an investment contract among many other instruments. Whether a token or arrangement is a security decides whether the securities registration rules, the exchange rules, and the broker dealer rules apply to the business. Our digital asset regulatory page and exchange and platform page cover those analyses.
Documentation a Bank or Acquirer Will Ask For
The written status memo, the FinCEN registration, the AML program, the state licensing analysis, the customer terms, and the custody and transfer policies. Having all six in order prepares a crypto business for a bank’s or an acquirer’s diligence review. We build them as a set.
How the Four Frameworks Fit Together
The frameworks ask different questions about the same business, and the answer under one does not decide the others.
Flow of value. If the business accepts value from one person and moves it to another, or exchanges virtual currency for real currency or other virtual currency as a business, the money transmitter rules are engaged. This applies regardless of whether the asset is a security.
Nature of the asset. If the asset is a security, the securities laws apply to its sale and to anyone effecting transactions in it for others. This applies regardless of whether the business is a money transmitter.
Location of the customer. State licensing follows where the customers are. A business with customers in several states may be exempt in one, licensable in another, and outside the definition in a third, and New York’s regime sits on top of its money transmission statute.
What that means. A single memo that answers all four questions for the specific model, followed by the registrations, licences, and programs the answers require, is the compliance foundation. We prepare the memo first and build from it.
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I would recommend working with Aaron and team.”
Julien Genestoux from Unlock, Inc
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They consistently deliver thorough and timely work. For any small business looking for dependable and knowledgeable corporate counsel, we wholeheartedly recommend IBL.”
Felipe Pinto from Revolve Labs
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As a result, we’ve continued to rely on them as our go-to legal counsel for ongoing corporate matters.”
Zachary Panos from Fourcaster LLC
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The attorneys were incredibly responsive, guiding me through every step of the process with clarity and professionalism. They took the time to address all my questions and concerns, ensuring that I felt confident in each decision we made. Their attention to detail and thoroughness were evident in the documents they prepared, which gave me peace of mind knowing that everything was handled properly. What stood out most was their commitment to my vision. They not only provided legal advice but also offered valuable insights into the industry, helping me navigate potential challenges and seize opportunities. Their strategic approach was instrumental in setting up a robust fund structure that aligns with my goals. Overall, working with IBL was a fantastic experience. They made a complex process manageable and stress-free. Thank you for your outstanding support.””
Jeff from Solar Carbon Credit Fund
How We Work a Crypto Compliance Matter
What the business does with digital assets, what it holds or controls, how value moves, how it is paid, and where its customers are.
The flow of value against the federal definition, its exclusions, and FinCEN’s virtual currency guidance.
Each asset and the way it is distributed against the statutory definition of a security.
Each state where customers are, against that state’s money transmission statute and any virtual currency regime, read from the statute that day.
The four answers in one document, with the rules relied on, for the business, its bank, and its counterparties.
FinCEN registration, the written AML program, state applications, and any securities filings the memo requires.
Renewals, program updates, new state analysis as the business grows, and responses to bank and regulator enquiries.
FAQ
01 • Digital Assets Does a crypto business need a licence?
It depends on what it does and where its customers are. A business that is a money transmitter under the federal rules must register with FinCEN, and each state decides separately whether a licence is required. New York adds its own virtual currency licence. The answer is a set of answers, one per framework and one per state.
02 • Digital Assets Is FinCEN registration enough?
No. Registration under 31 CFR 1022.380 is a federal filing required whether or not any state has licensed the business. State licences are separate, and the securities laws are separate again.
03 • Digital Assets My token is not a security. Am I unregulated?
No. The money transmission rules and state licensing regimes apply to the movement of value regardless of whether the asset is a security. A business can be outside the securities laws and still need FinCEN registration and state licences.
04 • Digital Assets What does a bank want to see before opening an account?
The written regulatory status memo, the FinCEN registration, the anti money laundering program, the state licensing analysis, and the customer and custody documentation. Having them ready is what moves an account application forward.
05 • Digital Assets Can one memo cover everything?
Yes, and it should. The four frameworks ask different questions about the same business, and a single memo that answers each one for the specific model is the document the business, its bank, and any future acquirer will rely on.
Digital asset businesses anywhere in the United States. Call (202) 860-1210 or describe your model through the form. Free consultation. Every model is different, and not every business triggers every rule. We will tell you which ones reach yours.
This page provides general information about the regulation of digital asset businesses under federal and state law and does not constitute legal advice. Reading it does not create an attorney client relationship. Rules, statutes, and guidance cited were read on the date this page was last updated and are subject to change. The regulatory status of a particular business depends on its specific facts.