Licensing Overview
American MSB (Money Services Business) license is regulated by FinCEN (Financial Crimes Enforcement Bureau of the United States czb under the agency) and issued financial license, the main income is subject to the regulations related to the money services business with the company. Include international remittances, exchange, currency trading / transfer (including digital currency / virtual currency), ICO launched providing prepaid project, the issue of travelers' checks and other services.
About MSB
FinCEN on March 18, 2013 issued the "Application of FinCEN's Regualations to Persons Administering, Exchanging, or Using Virtual Currencies" ( "FinCEN rules apply to personnel management, exchange or use guidelines virtual currency"), the guide clarifies the business and requirements for personal use of virtual currency in the registration of MSB. MSB is short for Money Services Business, belongs to FinCEN (US Treasury Financial Crimes Enforcement Agency under the agency) pipe, belonging to the license registration system, engaged in money-related services business must apply for the license.
According to the guidelines, digital assets to provide services to Americans, "Managing Party" (such as asset issuer) and "Exchange Square" (such as Exchange) under the Bank of America belongs to MSB Secrets Act (BSA), the need to establish the company within 180 days proposed to register with FinCEN. Because the US federal level are currently no other specific regulatory requirements for currency currency trading, we know the United States B-P network and network are held only in currency currency trading operations carried out under the premise of MSB.
In the company to conduct business must comply with federal regulations registered as MSB, and is also subject to the remittance activities of the state must comply with state regulations, there are 53 states and territories have licensing requirements, the cost mainly includes the cost of guarantee fees, application fees, license fees, survey fees and other costs. Licensing requirements are relatively costly and require a variety of programs to continue licensing these programs is extremely rigorous and time-consuming implementation.
Compliance requirements
With increasing compliance requirements, the exchange's own legal risk management also need to gradually improve, and the persons but also need to improve risk awareness, for our team think exchanges need pay enough attention to the following issues:
(A) internal rule-making and review
1. user protocol exchanges were drafting, revising and advising;
2. the relevant provisions of the Exchange privacy policy drafting, modification and provide advice;
licensing and disclosure of the information 3. review and exchange offer consulting;
Cookies policy 4. exchange, market data usage rules, market trading rules and other necessary public information to review, modify and provide advice;
5. from compliance and legal risk management perspective, the rules of the currency, the currency review standards and protocols related to review, modify and provide advice;
6. the relevant provisions of the Exchange online sales agreement are drafting, revising and advising;
7. the tax consulting, securities consulting, licensing, anti-money laundering, combating the financing of terrorism doctrine consulting, to provide the legal framework on exchange operator advice, suggestion;
8 do compliance reviews for the distribution platform currency or other currency on the project, and the potential risks of providing compliance solutions;
9. best governance practices by reference, preparation of legal documents relating to governance structure.
(B) Tax Planning Services
1. In accordance with the Exchange's operating structure, provide tax advice;
2. income or capital gains on the final liquidation or receive digital currency or tokens converted into legal tender arising from the tax treatment;
3. Exchange provide services and access to income or capital gains tax treatment of returns generated.
Agency function
Fincen established in 1990, aims to analyze the information, "Bank Secrecy Act" (BSA) required to support federal, state, local and international law enforcement. Over the years, Fincen employees by finding sales leads unknown information contained in, the development of expertise in adding value to the information collected BSA aspects.
During Fincen supervision, it is important to demonstrate that the required documents are in place and authorized to act on behalf of your employees, agents and all others who have been well trained to effectively implement all elements of the compliance program. Senior officials must be approved compliance program, the compliance officer must have the necessary permissions to perform the compliance program requirements.
March 18, 2013, Fincen to management, personnel exchange, or the use of virtual currency issued application (Fincen rules applicable to personnel management, exchange or use virtual currency Guide) Fincen regulations, a clear business and personal use in the MSB registration virtual currency requirements. MSB is an abbreviation for money service business. It belongs to Fincen (US Treasury Financial Crimes Enforcement). Registration belong licensing system. Where in the money services business, you must apply for a license.
Related Information
Currently, fire coin, Ok, currency exchange security and other starters have announced that it has received US money services business license, attracted the attention of numerous discussions and exchanges, and under the supervision of the Securities and Exchange Commission dynamic gradually mature Sto rules .
Many have begun to consult with the exchange, so our team improved the MSB application projects, and provides a MSB license applications. After the permit application is complete, you can check your company information on the official website of MSB "Financial regulatory classification" websites.
Shi Jia Yongcheng Service Enterprise Investment Management Consulting Co., Ltd. provides you
1, financial services license MSB program design
2, ready to write the application materials
3, MSB license application submitted to the US Treasury
4, the application process, responsible for answering questions posed by the US Treasury and FINCEN.
5, if the US Treasury and FINCEN we need to provide the remaining copy or instructions, we will be responsible for writing and submission.