Virtual currencies may suffer downturns and enjoy spectacular increases in value however there is no question that crypto is here to stay. Businesses that trade in these mediums will come under regulatory control and licenses will inevitably be required. Classified as “money transmitters”, a cryptocurrency surety bond will be part of that regulatory framework. The Uniform Law Commission (ULC) has drawn a uniform model law for the regulation of virtual currency businesses. Per the ULC, “The Uniform Regulation of Virtual-Currency Businesses Act (URVCBA) creates a statutory framework for regulating virtual currency business activity, which includes businesses engaged in the exchange of virtual currencies for cash, bank deposits, or other virtual currencies; the transfers of virtual currency between customers; and certain custodial or fiduciary services. Under the Act, “virtual currency” is a digital representation of value that is used as a medium of exchange, unit of account, or store of value and is not legal tender. This technology-neutral definition covers as many types of virtual currency as possible. The URVCBA’s unique, three-tiered structure clarifies whether an individual or company engaging in virtual currency business activity is exempt from the act, must register or must obtain a license. Many states have already brought virtual currency enterprises under statutory control and require a cryptocurrency surety bond as part of licensing or registration protocols. Learn more about a few of these at these links.
International surety bond leader, Surety One, Inc. specializes in the bonding needs of financial institutions, money transmitters and cryptocurrency specialists. We offer surety bonds and fidelity bonds to crypto operators and traders in all fifty states, Puerto Rico and U.S. Virgin Islands. Although applicant financial condition is a factor in bond underwriting, we have programs to fit EVERY credit condition. Call (800) 373-2804 or email us at Underwriting@SuretyOne.com for a cryptocurrency surety bond (money transmitter bond) application or to discuss your particular needs.
