Crypto Lawyer Miami Florida USA

Our best crypto lawyers are dedicated to serving investors, entrepreneurs and institutions engaged in cryptocurrency and blockchain technology. We are based in Miami, Florida, the US capital of blockchain, and we serve clients worldwide. Our services include:

The most popular crypto currencies, Bitcoin and Ether, fall under the jurisdiction of the Financial Crimes Enforcement Network (FinCEN).

FinCEN considers Bitcoin ATMs, OTC (over-the-counter) brokers, and Bitcoin crypto exchanges to be a type of a money services business (MSB) requiring licensing. Even peer-to-peer (P2P) crypto exchanging individuals, trading digital currencies on platforms such as Binance and Coinbase, are considered MSBs and as result require registration.

Other MSBs regulated by FinCEN are currency dealers and exchanges, check cashers, issuers of traveler checks and money orders, seller or redeemer of travelers’ checks, money orders or stored value and the U.S. Postal Service.

Money Services Business Defined

According to FinCEN, a money services business (MSB) includes any person doing business in one of the capacities above (money transmitter, currency dealer and 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, U.S. Postal Service), regardless of whether they are organized as a business or not, or are conducting business on a regular basis or only from time to time. In the case of Bitcoin ATMs, OTC (over-the-counter) brokers, and Bitcoin crypto exchanges, any person who engages as a business in the transfer of funds is an MSB regardless of the daily amount of money transmission and must register with FinCEN.

Furthermore, businesses and individuals that are involved in the purchase or sale of crypto currencies in exchange for fiat currency or other cryptocurrencies are considered money transmitters and as such are also required to obtain a money transmitter license (MTL) in every state in which they intend to do business in.

The MTL license typically authorizes the holder to transmit currency, monetary value, or payment instruments, either by wire, facsimile, electronic transfer, courier, the Internet, or through bill payment services or other businesses that facilitate such transfer, within this country or to or from locations outside this country.

Businesses and individuals who accept crypto as form of payment in exchange for products or services are not considered a money transmitter and are not required to be licensed.

FinCEN registration as a Money Service Business

All MSBs must register with FinCEN regardless if they are a money transmitter or another type of MSB. The only exception is if a person or business is an MSB because they serve as agent of another MSB.

Registration of an MSB is the responsibility of the owner or controlling person of the MSB. You must file your application by the registration deadline which is within 180 days after establishing the MSB. You must renew your FinCEN registration every 2 years.

Anti-money laundering (AML) program

Further, Our best crypto lawyers in Miami, Florida USA explain that FinCEN requires the MSBs to establish an anti-money laundering (AML) program. In order to meet FinCEN standards, the program shall consist of the following:

• Policies, procedures, and internal controls in regard to:
  • Know you customer (KYC) policies
  • Filing reports for suspicious activity
  • Record retention
• Designating a chief compliance officer
• Training and education procedures for staff to execute the AML program
• Procedures for independent review and monitoring of the AML program.

Crypto Lawyers: State Money Transmitter License

After registering with FinCEN and establishing an AML compliance program, a business and/or individual who is engaged in the purchase or sale of Bitcoin, must obtain a money transmitter license (or equivalent) from every state in which it intends to do business in. The money transmitter licensing requirements are subject to the laws of the individual states. The only exception is the state of Montana which does not have money transmitter laws. Regulation of money transmitters varies widely from one state to another and is subject to frequent change.

According to our crypto lawyers in Miami, Florida USA, to apply for a money transmitter license in the state of Florida, a business is subject to minimum net worth and surety bond requirements.

Besides financial statements, business structure overview, and Anti-Money Laundering (AML) program, you must submit details about your ownership. This includes fingerprints (authorized vendor) and personal details for all key personnel (officers, directors, etc) and any controlling shareholders.

According to FinCEN, ignorance of the law or negligence in complying is simply no excuse. Failure to register as an MSB can result in a $5,000 penalty per offence, or maximum 5 years in prison.

How can Malescu Law assist?

Our best crypto lawyers in Miami, Florida USA assist entrepreneurs and companies engaged in cryptocurrency and blockchain technology.

Get expert guidance for your Money Services Business. We navigate MSB registration, Money Transmitter licensing across states, and create a tailored AML program that is right for you.

We have successfully secured Money Services Business registrations and Money Transmitter License for our clients. For one of our client’s success story, visit Florida Money Transmitter License approved.

We serve companies and individuals across all 50 states, the District of Columbia and Puerto Rico.

Contact us now or schedule a consultation.