Bitcoin Money Transmitter vs. Money Transmitter: What’s the Difference?
Surety Bond Professionals is a family owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your surety bond needs. What Is a Money Transmitter? The U.S. government has identified the following as money services businesses: Currency dealer or exchanger Check casher Issuer of traveler’s checks, money orders, or stored value Seller or redeemer of traveler’s checks, money orders, or stored value Money transmitter For every entity on this list other than money transmitters, there is an activity threshold of $1,000 per day in one or more transactions to be considered a money services business. There is no activity threshold for money transmitters. Anyone engaging as a business in transferring funds in any amount as an intermediary between two parties is a money transmitter. Money transmitters must be registered with the Department of Treasury and licensed in every state in which they operate. The question is whether transferring Bitcoin and other cryptocurrencies is considered to be transmitting “money” and therefore subject to regulation as a money transmitter. How Is Cryptocurrency Money Transmission Defined? Initially, cryptocurrency existed in a gray...
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