NEVADA — Cryptocurrency operators must obtain a money transmitter license and surety bond to conduct business in the state, clarified the Financial Institutions Division at the Nevada Department of Business and Industry in a recent official statement.
Under Nevada Revised Statutes Chapter 671, any “entity engaged in the business of selling or using checks or of receiving for transmission or transmitting money or credits” is required to have a money transmitter license. This includes operators of bitcoin ATMs, of which there are an estimated 110 throughout the state.
Money Transmitter License applicants are required to obtain a surety bond payable to the State of Nevada before being approved, according to NRS Chapter 671.100. The bond amount starts at $10,000, with $5,000 added for each additional location within the state. The bond amount maxes out at $250,000.
Lawmakers introduced S.B. 195 during the 2019 legislative session in attempts to create a new statutory license program specifically for virtual currencies. However, the bill did not pass.
Any business that facilitates the transmission of or holds fiat or digital currency — “by way of brick-and-mortar, kiosk, mobile, internet or any other means” — should contact the Division to determine if a license is require, according the official statement. Depending on a company’s business model, it could fall under a different licensing statute.
More information about Nevada’s Money Transmitter License requirements and the required bond form can be found at the Department’s website. The Officer of Commissioner can be reached at (702) 486-4120 or by email at fidmaster@fid.state.nv.us. The Licensing Office can be reach at (775) 684-2970.
Alpha Surety & Insurance Brokerage will be happy to answer any questions regarding a Nevada Money Transmitter Surety Bond or any surety bond questions in general. You can call 800-901-3099 or send an email through the contact us page. We are here to answer your questions and help you fully understand surety bonds regardless of whether you choose to bond with us.