To engage in virtual currency business in New York State, entities may apply for a BitLicense or charter under New York State Banking Law (e.g., as a limited purpose trust company of New York State or Bank of the State of New York) with approval to conduct virtual currency business. Although these forms of authorization are similar, a New York State limited purpose trust company charter may provide additional benefits. For example, a limited purpose trust company can exercise fiduciary powers, whereas a BitLicensee cannot. Additionally, a limited purpose trust company may engage in the transfer of funds in New York without obtaining a separate New York funds transfer license. For more information on applying for a limited purpose trust charter, visit the Banks and Commercial Trusts page.
BitLicense application and license management
The Department of Financial Services uses the National Multistate Licensing and Registry System (NMLS) to manage the BitLicense. NMLS is a secure, web-based system created by the Conference of State Bank Supervisors (CSBS), in cooperation with the American Association of Home Mortgage Regulators, to increase the efficiency of state license processing and improve the supervision of state-regulated industries. With NMLS, businesses maintain a single record of applying, modifying, abandoning and changing licensing authorities in one or more states, and reporting online conveniently and securely.
Access to SNML
To enter information into NMLS, you must first complete a business account application form and identify a primary account administrator and a secondary account administrator. This form can be submitted electronically through the “Getting Started” section of the NMLS website. This form only needs to be submitted once per business, regardless of how many NMLS participating states you are licensed in.
Within three days of completing and submitting the Business Account Application Form, the primary account administrator will receive the NMLS login information. The primary account administrator will have full rights to access the system, submit information to this agency and other participating state regulators, and configure other company users in the system. Instructions and tutorials on how to access and use the system are also available in the NMLS Resource Center.
Manage your license on NMLS
Each business with a BitLicense that wishes to manage its license on NMLS must create a business listing in the system (see above). Current New York State BitLicense holders whose applications were submitted before BitLicense was integrated into NMLS can transfer their licenses to NMLS. See the New York Virtual Currency Business License Transition Checklist on the NMLS website for more information.
Submit a substantially complete application
To submit an application, please follow the instructions in the New York Virtual Currency Business Activity License New Application Checklist (the “BitLicense Application Checklist”). You can review the BitLicense Application Checklist at any time, even before you have an NMLS account. The BitLicense Application Checklist is a Crucially important guide for anyone considering applying for a BitLicense. Before submitting a BitLicense application, please read the BitLicense application checklist carefully. BitLicense applications must generally contain all articles described in the BitLicense Application Checklist. Failure to submit all of these items, as described, is the most common reason for delays in the application process.
Please note: An application will be not be considered ready for further review until the Department has received all required information, documents and fees, as detailed in the BitLicense App Checklistand the required documents appear at first glance adequate in terms of organization and level of detail. (Exceptions may be made if DFS deems it appropriate in light of specific circumstances.) Applications that are not ready for in-depth review will generally not receive a detailed expert review by DFS staff. Thus, processing a request that does not contain all articles as described in the BitLicense application checklist may be delayed indefinitely and ultimately the application may be denied for insufficiency. For more information on the Department’s application review process, please see the DFS Virtual Currency Business Activity License Application Procedure Notice.
Please also note that during the process of reviewing an application, DFS may request additional information and supporting documentation, beyond that found in the BitLicense Application Checklist.
Potential applicants who have questions about the application process can direct their questions to the DFS Virtual Currency Unit staff at: (email protected). If it appears that an applicant would benefit from a more interactive dialogue, DFS staff may recommend a pre-application call or meeting (virtual or in-person), at the appropriate time.
The application process
During the application process, your application will be assigned an NMLS identification number. Please keep a record of this SNML ID number, as it will be used as your application reference number throughout the process. The applicant’s SNML identification number must be included on each paper document submitted to the Department.
Note: If the applicant has already submitted Forms MU1 and MU2 through NMLS for another state, the applicant does not need to re-enter the business record in NMLS. However, the applicant is required to provide jurisdiction-specific information to support their claim in New York State.
