# How to Start a Crypto Business ## How do you start a crypto business in the US? To start a crypto business in the United States, you map which regulators apply to your product, form and capitalize your entity, register with FinCEN as a money services business, build a Bank Secrecy Act and anti-money-laundering program backed by blockchain analytics, and get licensed in every state where your customers live before you onboard them. Custodial exchanges, wallets, and payment platforms are generally treated as money transmitters in most states, and New York (BitLicense), Louisiana, and California run dedicated digital asset regimes on top of that. There is no single federal license that covers nationwide operation, so a full footprint can require several million dollars in capital, bonds, and filings staff. Launching a crypto exchange, wallet, or digital asset platform in the United States means FinCEN registration, state money transmitter licensing, and frameworks like the New York BitLicense. This founder's guide walks you through each step, and our specialists run the filings when you are ready. ## Your Roadmap to Launching a US Crypto Business The United States does not have a single, unified federal license for cryptocurrency businesses. Instead, crypto founders navigate a patchwork. It includes federal registration with FinCEN, state-by-state money transmitter licensing, and state-specific frameworks like the New York BitLicense and the Louisiana Virtual Currency Businesses Act. On top of all that sits a thick layer of Bank Secrecy Act obligations. This guide covers the key steps to launching a properly licensed digital asset business, whether you are building a centralized exchange, a custodial wallet, a payment app, or a tokenization platform. We recommend consulting with an attorney and a Cornerstone expert for guidance tailored to your specific business model. ## Mapping the US Crypto Regulatory Landscape Cryptocurrency businesses in the United States often face oversight from several regulators at once, depending on the products they offer. Knowing which regulators apply to you is the first step in building a workable filings strategy. Several federal agencies play a role. The Financial Crimes Enforcement Network (FinCEN) treats most businesses that exchange, transmit, or administer convertible virtual currency as money services businesses (MSBs). Those businesses must register and run a Bank Secrecy Act (BSA) program. The Securities and Exchange Commission (SEC) views many tokens as securities, which can pull token issuers, broker-dealers, and trading platforms into the securities framework. The Commodity Futures Trading Commission (CFTC) treats Bitcoin and Ether as commodities and regulates derivatives on digital assets. The Internal Revenue Service treats virtual currency as property for tax purposes, which has filing implications for both the business and its customers. States add another layer. Most regulate the receipt, holding, and transmission of fiat and digital assets on behalf of others through their money transmitter laws. A growing number have updated those statutes to address virtual currency directly, or have enacted standalone digital asset frameworks. Cornerstone helps crypto founders build a regulatory map specific to their product surface area before they file the first application. ## FinCEN MSB Registration and the BSA Program Most US-based crypto exchanges, custodial wallet providers, and payment platforms register with FinCEN as money services businesses. Registration is filed on FinCEN Form 107 and is typically renewed every two years. The registration itself is straightforward. The obligations that come with it are extensive. A crypto MSB is generally expected to run a written BSA/AML program sized to its risk profile. The core pillars usually include a designated BSA officer with day-to-day responsibility for the program. They include written policies and procedures for customer identification and transaction monitoring. They also include ongoing employee training, independent testing or audit on a regular cadence, and a documented risk assessment that is updated as the business changes. Reporting obligations sit on top of the program. These include Currency Transaction Reports for cash transactions above $10,000 and Suspicious Activity Reports when activity meets the reporting thresholds. They also include recordkeeping for transmittals of funds and certain virtual currency transactions under the Recordkeeping and Travel Rules. Crypto businesses also screen counterparties against the sanctions lists maintained by the Office of Foreign Assets Control (OFAC), and they block or reject transactions that hit a match. ## State Money Transmitter Treatment of Digital Assets State money transmitter laws are the dominant licensing layer for crypto businesses in the United States. The treatment varies significantly from state to state, and a business model that is exempt in one state can be a licensed activity in the next. Building a state-by-state matrix early helps avoid expensive mid-launch pivots. ## The New York BitLicense and Trust Charter New York remains one of the most consequential states for any crypto business with US customers. That comes down to the size of the market and the depth of the New York Department of Financial Services (NYDFS) framework. The BitLicense is codified at 23 NYCRR Part 200. It applies to any business engaged in virtual currency business activity involving New York or a New York resident. Covered activity includes receiving virtual currency for transmission, storing or holding it on behalf of others, buying and selling it as a customer business, performing exchange services, and controlling, administering, or issuing a virtual currency. The application is detailed. It typically requires a thorough business plan and written policies covering AML, cybersecurity, capital adequacy, business continuity and disaster recovery, complaint handling, and consumer protection. It also requires biographical and background materials on each principal, audited financials, fingerprint cards for control persons, and a cybersecurity program that satisfies 23 NYCRR Part 500. An alternative pathway is the New York limited purpose trust company charter, which several major crypto custodians have used. A trust charter typically carries higher capital and governance expectations than a BitLicense. In return, it lets the business hold customer assets as a fiduciary and passport into other states more easily through trust company recognition. NYDFS also maintains a Greenlist of pre-approved coins. Listing a coin outside the Greenlist generally requires a separate coin-listing approval or self-certification process. ## Capital, Surety Bonds, and Permissible Investments Capital requirements for crypto businesses can be significant, and they typically stack across the states where the business is licensed. ## Building a Crypto-Specific BSA/AML Program Crypto BSA/AML programs share the same statutory pillars as any other MSB program, but the operational tooling looks very different. Regulators and examiners increasingly expect crypto businesses to use blockchain analytics, address screening, and on-chain transaction monitoring alongside traditional fiat controls. A practical crypto BSA/AML program is generally expected to cover several fronts. It runs risk-based customer due diligence and enhanced due diligence with documented thresholds. It integrates blockchain analytics for wallet screening and source-of-funds checks. It calibrates monitoring rules to typologies common in digital asset abuse, such as mixers and tumblers, sanctioned protocols, darknet exposure, ransomware addresses, and structuring across wallets. It builds Travel Rule capability for transmittals at or above the applicable thresholds. It screens for sanctions and politically exposed persons at onboarding and on an ongoing basis. It also ties a clear SAR investigation and filing workflow to the monitoring output. The FinCEN Travel Rule, the Treasury sanctions framework, and state-specific examination manuals all reward businesses that can show working controls rather than paper policies. Cornerstone helps crypto businesses select analytics vendors, draft the procedures that wrap around them, and prepare for the BSA examinations that follow licensure. ## Custody vs Non-Custodial Models Whether your business takes custody of customer assets is the single most important business model question for US crypto licensing. ## Technology, Security, and Operational Infrastructure Crypto regulators evaluate technology and security with a level of scrutiny rarely applied to other financial services categories. The application package, the pre-licensing review, and the ongoing examinations all probe the same set of controls. ## How to get licensed 1. **Product and Regulatory Scoping**, Document each product line, the assets involved, and the customer states you intend to serve. Identify which activities trigger money transmission, securities, commodities, or trust regulation. 2. **Entity Formation and Capitalization**, Form the operating entity, secure initial capital sized to your target states, and put governance and board structures in place that examiners will recognize. 3. **FinCEN MSB Registration and BSA Program**, Register with FinCEN as a money services business, designate a BSA officer, and stand up the AML, sanctions, and Travel Rule controls before any customer goes live. 4. **State Licensing Strategy**, Sequence your state applications, often starting with money transmitter filings through NMLS, the NY BitLicense or trust charter pathway, the California Digital Financial Assets Law license, and the Louisiana Virtual Currency Businesses Act license as applicable. 5. **Custody and Cybersecurity Build-Out**, Implement your custody architecture, key management, cybersecurity program (including 23 NYCRR Part 500 where applicable), and blockchain analytics integrations. 6. **Application Filing and Regulator Engagement**, File complete applications, respond promptly to deficiency notices, and prepare principals for the interviews and management presentations that several states conduct. 7. **Pre-Launch Examination Readiness**, Run an internal mock examination covering AML, custody, cybersecurity, and consumer protection so that the first regulator visit after licensure is uneventful. 8. **Ongoing Filings and Renewals**, Stand up the calendar for renewals, call reports, audited financials, coin-listing approvals, and periodic risk assessment updates. Treat the filings program as a permanent operating function, not a launch checklist. ## Frequently asked questions ### Do I Need a License to Run a Crypto Business in the US? In most cases, yes. Custodial exchanges, wallet providers, and payment platforms that hold or transmit crypto for customers are generally treated as money services businesses at the federal level and money transmitters at the state level. New York, California, and Louisiana have additional licensing regimes specific to digital assets. Pure non-custodial software has historically faced lighter state exposure, but the legal landscape continues to evolve and should be reviewed by counsel. ### How Much Does It Cost to Launch a Licensed US Crypto Business? A nationwide licensing footprint, including the BitLicense or a trust charter, the California Digital Financial Assets Law license, and the patchwork of state money transmitter licenses, can require several million dollars in capital, surety bonds, application fees, legal fees, and filings staff before the first customer is onboarded. Many founders pursue a phased approach, starting in one or two anchor states and expanding over time. ### What Is the New York BitLicense, and Do I Need It? The BitLicense is a NYDFS license, codified at 23 NYCRR Part 200, that applies to most virtual currency business activity involving New York or New York residents. If you plan to serve New York customers in any custodial or exchange capacity, you generally need either a BitLicense or a New York limited purpose trust charter. Both pathways have rigorous capital, cybersecurity, and AML expectations. ### Can I Avoid Licensing by Going Non-Custodial? Non-custodial designs reduce, but do not always eliminate, US licensing exposure. The FinCEN 2019 guidance distinguishes between wallet software developers and money transmitters that hold customer value, and several states have suggested that pure peer-to-peer software is outside their money transmitter laws. The treatment varies by state and by product design, and the conclusion should be reviewed by counsel and revisited as guidance evolves. ### What BSA/AML Controls Are Examiners Looking For? Examiners generally expect a written BSA program with a designated officer, risk-based customer due diligence, blockchain analytics for wallet screening and transaction monitoring, working Travel Rule capability, sanctions screening, a documented SAR workflow, and independent testing on a regular cadence. They tend to want to see live tooling and real cases, not paper policies. ### How Does Cornerstone Help a Crypto Founder Get Licensed? Cornerstone helps crypto founders build a state-by-state regulatory map, complete FinCEN registration, prepare and file money transmitter and digital asset license applications across NMLS and direct state portals, coordinate surety bonds, draft the policy and procedure stack that wraps around custody and BSA controls, and manage the ongoing renewal and reporting calendar after licensure.