? The MSB (Money Service Business) license in the United States is a financial license issued under the supervision of FinCEN (Financial Crime Enforcement Bureau under the US Treasury Department), which is mainly aimed at enterprises and companies related to money services. The scope includes international remittance, foreign exchange, currency transaction/transfer (including digital currency/virtual currency), ICO issuance, provision of prepaid items and issuance of traveler's checks.
Introduction to MSB
The Financial Crime Enforcement Network published the Application of the Regulations of the Financial Crime Enforcement Network to those who manage, exchange or use virtual currency (the Guide to the Rules of the Financial Crime Enforcement Network for Managing, Exchange or Use Virtual Currency), which clarified the requirements for enterprises and individuals to use virtual currency in MSB registration. MSB is the abbreviation of Money Services Business, which belongs to FinCEN (Financial Crime Enforcement Bureau, a subsidiary of the US Treasury Department) and belongs to the registration and licensing system. All enterprises related to monetary services must apply for this license.
According to this guideline, digital assets "managers" (such as asset issuers) and "changers" (such as exchanges) who provide services to Americans are MSBs under the Bank Secrecy Act (BSA) of the United States, and need to register with FinCEN within 180 days of the company's establishment. Because there are no other clear regulatory requirements for currency trading at the federal level in the United States, the well-known B-networks and P-networks in the United States all carry out currency trading business on the premise of only holding MSB.
Companies must comply with federal regulations in order to register as MSB, and must also comply with the regulations of the states where remittances are active. At present, 53 States and regions have licensing requirements, and the cost of their fees mainly includes guarantee fees, application fees, licensing fees, investigation fees and other fees. Relatively speaking, the licensing requirements are expensive, and various procedures are needed to continue the licensing, which is extremely strict and time-consuming.
Compliance requirements
With the increasingly high compliance requirements, the legal risk management of the exchange itself needs to be gradually improved, and the risk awareness of relevant personnel needs to be improved. To this end, our team believes that the exchange needs to pay enough attention to the following issues:
(A) the formulation and review of the internal control system
1. Drafting, amending and consulting the user agreement of the Exchange;
2. Drafting, amending and consulting the relevant provisions of the privacy policy of the Exchange;
3. Review the permission and disclosure information of the Exchange and provide consultation;
4. Review, modify and provide consultation on the necessary public information such as Cookies policy, market data usage rules and market trading rules of the Exchange;
5. From the perspective of compliance and legal risk management, review, modify and provide advice on the rules, review standards and related agreements of currency purchase;
6. Drafting, amending and consulting the relevant clauses of the online sales agreement of the Exchange;
7. Provide advice and suggestions on the legal framework for the operation of the exchange according to tax consultation, securities consultation, licensing, anti-money laundering and anti-terrorism financing consultation;
8. Conduct compliance review on platform currency issuance or other currency-carrying projects, and provide compliance solutions for potential risks;
9. Refer to best governance practices and prepare legal documents on governance structure.
(2) Tax planning services
1. Provide relevant tax advice according to the operation structure of the exchange;
2. Tax treatment of income or capital gains arising from final liquidation or conversion of received digital currency or tokens into legal tender;
3. Tax treatment of income from remuneration or capital gains provided by the exchange.
Institutional function
Fincen was established in 1990 to support federal, state, local and international law enforcement by analyzing the information required by the Bank Secrecy Act (BSA). Over the years, Fincen employees have accumulated professional knowledge to add value to the information collected by BSA by discovering unknown information in sales leads.
During Fincen's supervision, it is important to prove that the required documents are in place, and that employees, agents and all others authorized to act on your behalf are well trained and can effectively implement all the contents of the compliance plan. Senior officials must approve the compliance plan, and compliance officers must have the necessary authority to implement the requirements of the compliance plan.
On March 20 18 13, Fincen issued the application of Fincen rules (Fincen rules are applicable to personnel who manage, exchange or use virtual currency), clarifying the requirements for enterprises and individuals to use virtual currency in MSB registration. MSB is the abbreviation of money service business. It belongs to Fincen (Financial Crimes Enforcement Bureau of US Treasury Department). It belongs to the registration and licensing system. Anyone who engages in monetary service business must apply for a business license.
relevant information
At present, the first batch of exchanges, such as Huobi, Ok and Qian 'an, have successively announced that they have obtained the US currency service business license, which has attracted the attention and discussion of many exchanges and gradually matured the Sto rules under the dynamic supervision of the US Securities and Exchange Commission.
Many exchanges also began to consult related matters, so our team improved the MSB application program and provided MSB license application services. After the license application is completed, you can find your company information in MSB official website "Financial Supervision Classification".