Which cryptocurrency licenses are necessary in the United States? A complete explanation of the five mainstream licenses.

If a cryptocurrency business tries to operate legally in the United States, it's honestly confusing because there are too many types of licenses. MSB, MTL, NFA, SEC-related… I did a thorough comparison of which one to choose.

1. MSB (Money Service Business) License

What this is: It's something issued by FinCEN (Financial Crimes Enforcement Network) under the U.S. Department of the Treasury. It's like a “business license.”

Target Business: Cryptocurrency exchanges, ICO issuance, international remittances, cash exchange services, etc. These are almost essential for blockchain companies.

2. MTL (Money Transmitter License)

What it is: A license issued independently by each state that regulates remittance services.

Applicable operations: Fund transfers, invoice payments, currency transportation, etc. If you want to operate in multiple states, you will need to obtain this in each state (which means more procedures).

3. NFA (National Futures Association) License

What it is: A self-regulatory organization for the futures and foreign exchange markets. It oversees derivative trading.

Target Business: Provision of futures trading, FX, and derivative products. Necessary if dealing with cryptocurrency derivative products.

4. SEC Investment Advisor Registration

What is this: If you receive compensation for providing investment advice, you must register with the SEC (U.S. Securities and Exchange Commission).

Point: If the managed assets exceed 100 million dollars, register directly with the SEC; if not, register with the state. The SEC concentrates its resources on large projects.

5. SEC Filing (Regulation D)

What it is: When issuing a security token (STO), a notification must be submitted to the SEC. Regulations are necessary as it is classified as a security.

Required Documents: Business plan, audit report, company information, etc. Transparency is required.

Conclusion

The type of license required depends on the type of business. In some cases, multiple licenses may be necessary. For a cryptocurrency exchange, at least an MSB and MTL are needed. If dealing with investment products, SEC is also required. It is advisable to clarify the business activities and consult with a lawyer.

Looking at the current movements of BTC, XRP, and BNB, it is becoming essential to have such compliance knowledge for business development in a market where regulatory responses are advancing.