Despite federal U.S. authorities demanding that cryptocurrency exchanges are licensed as money transmitters, some states have decided to allow certain business models to operate outside those requirements, industry insiders have said.
The U.S. Treasury's Financial Crimes Enforcement Network (FinCEN) requires virtual currency exchanges to register with the agency as money transmitters, and to be licensed as such by each state in which they operate.
Although every U.S. state except Montana has some sort of money transmitter licensing framework in place, a company operating a cryptocurrency exchange service does not necessarily fall under the scope of such rules, according to Joe Ciccolo, president of cryptocurrency compliance specialist BitAML.
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