Participating commercially in a virtual currency operation is a regulated activity in Georgia. State statute (O.C.G.A. § 7-1-680) defines cryptocurrencies as, "a digital representation of monetary value that does not have legal tender status as recognized by the United States government." No person, regardless of his or her location, facilities, or its agents may engage in the transmission of virtual currencies without having first obtained a license authorizing them to do so. Pursuant to §7-1-690, virtual or cryptocurrencies are specifically identified as a regulated activity, to wit;
A Georgia money transmitter bond is required as part of the licensing protocols under the statute.
Pursuant to GA §7-1-683.2, "An applicant shall provide with its application a money transmitter bond issued by an insurer authorized to do business in Georgia and approved by the Department. The surety bond for money transmitters must be in the principal sum of $100,000.00." Further, "the Department may require an applicant or a licensee to provide additional bond for the adequate protection of payment instrument holders if the average daily outstanding balances for payment instrument operators exceed the current suretybond amount, the average daily outstanding orders to transmit not yet paid for money transmitters exceed the current bond amount, or the Department determines that additional coverage is necessary in order to satisfy the Department that the provisions of the law are fulfilled. A licensee's level of outstanding transfer balances is determined by the portion of the licensee's financial reports dealing with transactions originating in Georgia which must be submitted to the department periodically. Under no circumstances may the Georgia money transmitter bond exceed $2,000,000.00. This bond must be filed electronically (ESB) through the National Mortgage Licensing Service (NMLS).
Certain licensees must also comply with The Bank Secrecy Act (BSA) which requires specific exchanges and intermediaries to register with the Financial Crimes Enforcement Network (FinCEN). You may review the anti-money laundering program requirements here.
International surety bond leader, Surety One, Inc. specializes in the bonding needs financial institutions, money transmitters and cryptocurreny operators. We offer surety bonds and fidelity bonds to financial services businesses, miners 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, email us at Underwriting@SuretyOne.com or click here for a live chat for a Georgia virtual currency business bond (money transmitter bond) application or to discuss your particular needs.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.