Georgia Money Transmitter Bond (Cryptocurrency)

Bond Penalty: $100,000 (may be increased by Department of Banking)

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;

  1. The department is authorized to enact rules and regulations that apply solely to persons engaged in money transmission or the sale of payment instruments involving virtual currency. The department shall enact such rules and regulations it finds necessary to:
    1. Foster the growth of businesses engaged in money transmission or the sale of payment instruments involving virtual currency in Georgia and spur state economic development;
    2. Ensure the continued solvency, safety, soundness, and prudent conduct of persons engaged in money transmission or the sale of payment instruments involving virtual currency;
    3. Ensure fair, timely, and equitable fulfillment of the financial obligations of such persons;
    4. Protect customers of businesses engaged in money transmission or the sale of payment instruments involving virtual currency from financially impaired or insolvent providers of such services;
    5. Encourage high standards of honesty, transparency, fair business practices, and public responsibility;
    6. Eliminate financial fraud, other criminal abuse, and unethical conduct in the industry; and
    7. Ensure businesses engaged in money transmission or the sale of payment instruments involving virtual currency provide customers with timely and understandable information in order that customers may make informed decisions about virtual currency products and services.

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.

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Additional Attachments

  • Current Business Financial Statement