The State of New Hampshire has amended its laws regulating money transmitters to include virtual currencies. A money transmitter surety bond will now be required from cryptocurrency exchanges. Chapter 399 of New Hampshire Title XXXVI now defines, “Convertible virtual currency” as a digital representation of value that: (a) Can be a medium of exchange, a unit of account, and/or a store of value; (b) Has an equivalent value in real currency or acts as a substitute for real currency; (c) May be centralized or decentralized; and (d) Can be exchanged for currency or other convertible virtual currency. All virtual currency traders will now be regarded as falling under the same regulations as that hard currency transmitters.
In addition to special registration requirements, a cryptocurrency operator/trader will be responsible for maintaining a Money Transmitter Surety Bond. The bond must be written in the amount of $100,000. In addition to a general compliance obligation, the form also guarantees that third parties may seek indemnity directly from the principal and surety. It is a cancelable form however there is a six year “tail” on the the surety bond.
Licensing forms may be obtained directly from the State on the Banking Department’s website at https://www.nh.gov/banking/consumer-credit/ccd-money-transmitter.htm. Registration submissions inquiries are directed as follows:
53 Regional Drive, Suite 200
Concord, NH 03301
The State has established a study group which includes legislators and representatives of the Department of Banking to study and suggest appropriate statutory controls of virtual currency issues. Parties trading cryptocurrencies can expect an evolution of New Hampshire’s rules. Keep up date with those changes at https://www.nh.gov/banking.
Surety bond leader, Surety One, Inc., specializes in the surety and fidelity bond needs of the financial services industry. We offer money transmitter surety bonds in all fifty states, Puerto Rico and U.S. Virgin Islands. Application submissions are reviewed and responded to on the same day as they are received. We are the MOST RESPONSIVE underwriter in sureyt. Call (800) 373-2804, or email us at Underwriting@SuretyOne.com for transmitter (virtual currency trader) surety bond application or to discuss your particular need.
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