How to Apply for Crypto License in New York

When can you skip the BitLicense?

Before diving in, make sure you actually need a license (it’s not free). You’re exempt if you’re: 

• A consumer who uses virtual currency solely for investment purposes.

• A merchant or consumer who uses virtual currency solely for the purchase or sale of goods or services. 

• A charitable organization that solely accepts donations in virtual currency.

• An individual or business that solely mines virtual currency and sells mined coins in private, non-commercial transactions.

• An individual or company that solely develops and disseminates software (as a purely technical service) for the virtual currency space.

• An individual or company that provides advice on buying or selling virtual currency. 

• A business chartered under New York Banking Law that has received the Superintendent’s approval to engage in virtual currency business activity without a BitLicense.

If you fall into one of the above categories, stop here. Otherwise, read on.

Who needs a BitLicense?

You need a BitLicense if you are conducting one of the following five activities “involving New York or New Yorkers” (emphasis added):

1. receiving Virtual Currency for transmission or transmitting Virtual Currency;

2. storing, holding, or maintaining custody or control of Virtual Currency on behalf of others;

3. buying and selling Virtual Currency as a customer business;

4. performing exchange services as a customer business; or

5. controlling, administering, or issuing a Virtual Currency.

To simplify, if you are a business, individual, or charitable organization that sends, receives, stores, holds, buys, sells, exchanges, controls, administers, OR issues virtual currency on behalf of others (with even one of those “others” involving a New Yorker or New York), you’ll need a BitLicense. Yes, your business can be located outside New York and still need one. Additionally, if you engage in the transmission of fiat currency as part of your business, you will also need a Money Transmission License.

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How much does a BitLicense Cost?

You’ll need to pay an application fee of $5,000 to the state of New York and $15 for each control person to cover credit reports. This will be paid online during your filling submission.

How do I get a BitLicense?

The process is straightforward (albeit time-consuming). BitLicense applications are submitted electronically through the Nationwide Multistate Licensing System (NMLS), which is essentially an online form. You’ll also need to provide documents (some of which may need to be sent in hard copy). Collecting all the information and documents will be the most cumbersome step.‍