Compliance and Regulatory Alerts | 01-19-23
Louisiana Puts in Place New Virtual Currency Business Activity License
Businesses that are interested in engaging in virtual currency activities in Louisiana must now take steps to file for a license from the state. The new Virtual Currency Business Activity License is designed to protect consumers, investors, and other stakeholders from fraudulent and deceptive business practices related to cryptocurrency activities by requiring licensees to meet certain qualifications and maintain specific records of their activities.
To obtain a license, applicants must demonstrate they have sufficient financial resources and management capabilities to properly and lawfully conduct the business activities; provide proof of a bond or other form of security; ensure the company abides by all applicable laws regarding data protection, consumer protection, anti-money laundering (AML) and countering terrorism financing (CTF); and provide ongoing reports of all transactions, including those conducted with external parties. Furthermore, businesses must also have an actively functioning website with help desk services available as well as a mailing address where customers can send any customer inquiries or complaints.
With the July 2023 deadline fast approaching, businesses should file for their Virtual Currency Business Activity License as soon as possible in order to remain compliant with Louisiana regulations.
How Bates Helps:
Bates assists clients in obtaining state virtual currency and money transmitter licenses, as well as with compliance following licensure and the start of operations. Contact us today to discuss your needs with a Bates Compliance licensing specialist.