Crypto Exchange License in New York (BitLicense)

In the United States a crypto exchange is authorised in layers: it registers with FinCEN as a money services business and holds state money transmitter licences, and New York adds its own BitLicense. Any company that buys, sells, exchanges, transmits or holds crypto for customers in New York needs a BitLicense from the New York State Department of Financial Services (NYDFS) under 23 NYCRR Part 200, unless it is chartered under the New York Banking Law and approved for virtual currency activity. BitLicense applications are filed through NMLS with a non-refundable $5,000 application fee.

In short:

• Who needs a BitLicense: anyone conducting Virtual Currency Business Activity involving New York or a New York resident (23 NYCRR 200.3).
• Alternative: a New York Banking Law charter, such as a limited purpose trust company, approved by NYDFS for virtual currency activity.
• Application fee: $5,000, not refunded if the application is denied or withdrawn (23 NYCRR 200.5).
• Decision: within 90 days after NYDFS deems the application complete; the period can be extended (23 NYCRR 200.6).
• Capital: set individually by NYDFS for each licensee, based on its risks (23 NYCRR 200.8).
• Federal layer: FinCEN MSB registration applies in every state, see money transmitter licence (MTL) in the USA.

What counts as virtual currency business activity in New York

Under 23 NYCRR 200.2, it is any of these activities involving New York or a New York resident:

1. receiving virtual currency for transmission or transmitting it (except non-financial transfers of a nominal amount);
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;
5. controlling, administering or issuing a virtual currency.

Developing and distributing software alone is not virtual currency business activity. Merchants and consumers who use virtual currency only to buy or sell goods or services, or for investment, are exempt (23 NYCRR 200.3(c)).

Crypto exchange licence in the USA: the three layers

1. FinCEN. Registration as a money services business within 180 days after the business is established, renewed every two calendar years (31 CFR 1022.380), with an AML program. FinCEN guidance FIN-2019-G001 says exchangers and administrators of convertible virtual currency generally qualify as money transmitters.
2. States. A money transmitter licence in each state where you serve customers, unless an exemption applies; Montana is the only state that does not regulate money transmitters.
3. New York. A BitLicense for virtual currency business activity, or a Banking Law charter.

BitLicense application: what NYDFS reviews

The application under 23 NYCRR 200.4 includes, among other items:

• the company, its affiliates and an organisation chart;
• biographies of directors, principal officers and principal stockholders, background reports on principal officers and principal stockholders by an independent investigatory agency, and fingerprints for them and for staff with access to customer funds;
• current financial statements and a projected balance sheet and income statement for the following year;
• a description of the business, policies and procedures required by Part 200.

Part 200 then sets ongoing duties: a compliance officer and compliance policies (200.7), custody and protection of customer assets (200.9), approval of material changes and changes of control (200.10, 200.11), books and records (200.12), examinations (200.13), reports and financial disclosures (200.14), an anti-money laundering program (200.15), a cyber security program (200.16), business continuity (200.17), advertising, consumer protection and complaints rules (200.18–200.20).

How long a BitLicense takes

NYDFS must approve or deny within 90 days from the filing of an application it deems complete, and may extend this period (23 NYCRR 200.6(b)). NYDFS starts the substantive review only once the application is informationally complete and names missing documents as the most common reason for delays. NYDFS may also grant a conditional licence to an applicant that does not yet meet all requirements; it expires after two years unless NYDFS renews it or removes the conditions (23 NYCRR 200.4(c)).

How Blocons helps

1. Business model review at a consultation (30 min — €100; written — from €200): which activities touch New York residents and whether a BitLicense, a charter or another route fits.
2. A licensing map for the US: FinCEN, state MTLs and New York.
3. The application pack for NYDFS: corporate documents, biographies, financials, business plan, AML, cyber security, custody and consumer protection policies.
4. Filing through NMLS and answers to NYDFS questions until the decision.

Our fee is quoted in writing after the review. Request a review · €100. Other markets: crypto licences by country.

FAQ

What licence does a crypto exchange need in the USA?

FinCEN registration as a money services business, money transmitter licences in the states where it serves customers, and a BitLicense (or a Banking Law charter) for New York.

How much does a BitLicense cost?

The application fee is $5,000 and is not refunded. Capital is set individually by NYDFS.

How long does it take to get a BitLicense?

The regulation gives NYDFS 90 days from the moment it deems the application complete, with the right to extend. Preparing a complete application is part of the timeline.

Can a company serve New York residents without a BitLicense?

Only if it falls under an exemption, for example a company chartered under the New York Banking Law and approved by NYDFS for virtual currency activity, or a merchant that accepts crypto only as payment for goods or services.

Sources

• 23 NYCRR Part 200 (Virtual Currencies), Cornell LII
• NYDFS, virtual currency businesses
• 31 CFR 1022.380, FinCEN FIN-2019-G001
• Montana Division of Banking and Financial Institutions

Facts checked against the sources above on 11 October 2026. This page is general information about the regulatory framework; requirements for a specific business depend on its model.