What is Money Transmitter?
Let's find out Money Transmitter meaning, definition in crypto, what is Money Transmitter, and all other detailed facts.
A company that provides money transfer services is referred to as a money transmitter. In the US, money transmitters belong to a larger group of companies called money service businesses (MSBs).
Talking about the crypto world, any company that deals with cryptocurrencies on a regular basis is perceived as a money transmitter. That’s the case because cryptocurrencies are classified as a commodity under federal law in the U.S. and it falls under the jurisdiction of the Financial Crimes Enforcement Network (FinCEN).
FinCEN confirmed that virtual currency and fiat money are subject to the same money transmission legislation in a guidance document published in 2013, titled Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies.
A money transmitter, according to FinCEN, is someone who provides money transmission services or participates in money transfers. Therefore, money transmitters include all companies that take cryptocurrencies from clients on behalf of merchants or exchange virtual currencies for fiat money.
Note that the Bank Secrecy Act (BSA) applies to all crypto-related businesses, which means that they must seek a license in each state where they operate (except if they are in the northwestern state of Montana). Payment processors, cryptocurrency exchanges, Bitcoin ATMs, and some cryptocurrency wallet providers are among the organizations that are subject to these legal obligations.