The New York DFS Virtual Currency License, known as the BitLicense, is the permit every business that buys, sells, stores, transmits, issues, or exchanges virtual currency on behalf of New York residents must hold under 23 NYCRR Part 200. The license is issued by the New York State Department of Financial Services and is filed through the Nationwide Multistate Licensing System (NMLS) under the company form MU1 plus the New York Virtual Currency Business Activity (VCBA) checklist.
Skipping or botching this filing is not a small problem. Since 2015, NYDFS has issued fewer than 35 BitLicenses, and the agency has fined unlicensed or non-compliant firms more than $200 million, including the $100 million Coinbase consent order in 2023. Most applications take 18 to 24 months to approve, and roughly 70% of first submissions are returned as deficient.
Here is what this guide gives you:
- 📋 A line-by-line walkthrough of every NMLS field and every NY-specific attachment
- 💵 Current 2026 fees, surety bond math, and supervisory assessment ranges
- 🧭 Three full named-applicant scenarios (exchange, custodian, stablecoin issuer)
- ⚠️ The 12 most common rejection triggers and how to avoid each one
- 🏛️ How the BitLicense compares to the New York limited purpose trust charter
What the BitLicense Is and Who Must File It
The BitLicense is a state money-transmission-style permit created in 2015 under 23 NYCRR Part 200, authorized by New York Financial Services Law § 102 and § 201. It governs any “Virtual Currency Business Activity” that touches a New York resident, even if the company sits outside the state. The current rule text was last refreshed by NYDFS guidance in 2024, including the VOLT framework for supervised entities.
Five activities trigger the license under § 200.2(q): receiving virtual currency for transmission, storing or holding virtual currency for others, buying and selling as a customer business, performing exchange services, and controlling, administering, or issuing a virtual currency. A merchant accepting Bitcoin for goods is exempt, and software developers who never custody funds are exempt, but almost everyone else is in.
If you fall in scope and operate without a license, NY Financial Services Law § 408 authorizes civil penalties up to $5,000 per violation per day, and unlicensed activity can be referred to the New York Attorney General under the Martin Act. The agency that receives, reviews, and supervises the license is the Virtual Currency Unit inside the NYDFS Research and Innovation Division.
The alternative path is the New York limited purpose trust charter under Banking Law § 102-a, used by Gemini, Paxos, and NYDIG. The charter gives fiduciary powers and broader interstate reach, but demands higher capital and a full bank-style examination program. Most operating crypto businesses still pick the BitLicense because it is faster and cheaper, even though “faster” still means roughly two years.
Before You Start: Documents and Information You Need
The application is document-heavy. NYDFS reviewers compare every line of the BitLicense application checklist on NMLS against the attachments you upload, and a single missing item triggers a deficiency letter that adds 30 to 90 days. Build your file room before you ever open NMLS.
- Certificate of incorporation and good standing from your home state, because NYDFS verifies legal existence and a stale certificate freezes the file.
- Audited financial statements for the prior two fiscal years, prepared under U.S. GAAP, because the agency must judge solvency and unaudited statements are rejected.
- Pro forma balance sheet and three-year projections, because the Capital Determination under § 200.8 is based on these numbers and weak projections lead to higher required capital.
- Biographical affidavits and fingerprint cards for every director, officer, and 10%+ owner, because background checks run through the FBI and a missing print card stops the file.
- AML/BSA program manual aligned to 31 CFR 1022 and § 200.15, because NYDFS will not approve without a board-adopted program.
- Cybersecurity policy mapped to 23 NYCRR Part 500 and § 200.16, because the second-most common deficiency in 2025 was missing Part 500 mapping.
- Business continuity and disaster recovery plan under § 200.17, because the agency tests it against your custody architecture.
- Surety bond or trust account commitment letter under § 200.9, because the dollar amount is not finalized until NYDFS sets it but a placeholder is required.
- Source-of-funds documentation for every capital contribution, because § 200.4(a)(15) requires a complete trail and unsupported wires get flagged as AML risk.
- Consumer disclosure samples required by § 200.19, because the agency reviews exact language, not summaries.
Where to Get the Form and How to Access It
Since 2023, NYDFS has migrated virtual currency licensing to the Nationwide Multistate Licensing System, the same platform used for money transmitter licenses. You start by requesting a Company Account through the NMLS account request form, which takes one to three business days to approve.
Once your account is live, log in, select New York as the state, and choose Virtual Currency Business Activity License under the company application. NMLS will load Form MU1 (Company Form), Form MU2 (Individual Disclosure for control persons), and Form MU3 (Branch Form, if you have NY branches). The state-specific New York VCBA checklist tells you exactly which attachments to upload.
If you prefer the legacy paper path, the NYDFS application portal still accepts PDF submissions for entities that already have a NY money transmitter license, but the agency strongly prefers NMLS. The current NMLS form revision is dated March 2026, and you should confirm the revision date in the upper right corner of MU1 before you save any draft.
Access is gated by a paid NMLS user account. The NMLS processing fee for MU1 is $100, the credit-report fee per control person is $15, and the FBI fingerprint fee is $36.25 per person. These are separate from the NYDFS application fee.
Step-by-Step: How to Fill Out the BitLicense Application Line by Line
This is the longest section because every field on MU1 and every NY VCBA attachment carries its own rejection risk. Work through it in order, save often, and never submit until your compliance counsel signs off.
Item 1: Legal Name of Applicant (MU1, Section 1A)
This field asks for the exact legal name on your certificate of incorporation, not a brand or DBA. Type it in mixed case exactly as the Secretary of State has it, including punctuation and “Inc.” or “LLC.”
For example, Coinhaven Holdings Inc. writes Coinhaven Holdings Inc. in Section 1A, not “Coinhaven” or “CoinHaven Inc”. If you operate under a brand, that goes in Item 2 (Other Trade Names).
The most common edge case is a foreign parent. If your applicant is a Delaware sub of a Cayman parent, the Delaware sub goes in 1A and the Cayman parent shows up in the Direct Owners and Executive Officers schedule. The most common mistake is using a marketing name; the consequence is an automatic deficiency letter that adds at least 30 days. A misconception is that DBAs go here; they do not, they go in Item 2.
Item 2: Other Trade Names / DBAs (MU1, Section 1B)
This field captures every brand, app name, or marketing label your company uses with the public. List each one on its own line, with the state where the DBA is registered.
Example entry: Coinhaven Holdings Inc. lists Coinhaven, HavenPay, and Haven Wallet, each tied to its NY DBA filing receipt.
The nuance is that an unregistered DBA cannot be listed; you must file the assumed-name certificate first. The mistake is listing a name you have not registered, which NYDFS treats as an unauthorized use under § 200.19. The misconception is that internal product code-names belong here; they do not, only public-facing names.
Item 3: Main Address and Registered Agent (MU1, Section 1D and 1E)
NMLS asks for your principal executive office and your New York registered agent for service of process. The address must be a physical street address; P.O. boxes are rejected.
Example entry: Coinhaven Holdings Inc. writes 77 Water Street, 8th Floor, New York, NY 10005 and lists CT Corporation System, 28 Liberty Street, New York, NY 10005 as the registered agent.
The edge case is a virtual headquarters. NYDFS will accept a coworking address only if you submit the lease and proof of dedicated space. The mistake is using a mail-drop, which triggers a § 200.10 location violation. The misconception is that the registered agent can be an employee; under BCL § 305, it must be a person or entity with a NY business address.
Item 4: Federal Employer Identification Number (MU1, Section 1F)
Enter the nine-digit EIN issued by the IRS. Format is XX-XXXXXXX with the dash.
Example entry: Coinhaven Holdings Inc. writes 88-1234567.
The edge case is a brand-new entity that has not received its EIN yet; you must wait for the EIN before you can submit. The mistake is using the parent’s EIN by accident, which kills your IRS cross-check. The misconception is that an ITIN can substitute; it cannot.
Item 5: Business Activities (MU1, Section 2)
This is the field that tells NYDFS which virtual currency activities under § 200.2(q) you will perform. Check every box that applies; do not under-report.
Example entry: Bridgekey Custody LLC checks Storing, Holding, or Maintaining Custody of Virtual Currency and Receiving Virtual Currency for Transmission, then writes a 250-word narrative tying each activity to a product line.
The nuance is that adding an activity later requires a material change application under § 200.10, which is its own filing. The mistake is checking only one box to look small; the consequence is a cease-and-desist if you launch a second activity. The misconception is that staking is unlicensed; NYDFS treats custodial staking as covered activity.
Item 6: Direct Owners and Executive Officers (MU1, Schedule A)
List every person or entity that owns 10% or more, plus every executive officer and director. Each individual triggers a separate MU2 filing.
Example entry: Stable Issuer Trust Co. lists Maria Lopez (CEO, 22%), David Chen (CFO, 14%), and Northstar Capital Partners LP (32%), then files MU2 for Maria and David.
The edge case is a trust ownership; the trustee files MU2, not the beneficiary, unless the beneficiary has voting control. The mistake is omitting a 10.1% owner because the cap table is “almost” 10%; the consequence is a fitness-and-propriety hold. The misconception is that passive VCs are exempt; they are not.
Item 7: Indirect Owners (MU1, Schedule B)
This captures every upstream owner with 25%+ control of any direct owner you listed in Schedule A. Walk the cap table all the way to natural persons.
Example entry: Northstar Capital Partners LP lists its general partner Northstar GP LLC, which lists its sole member Jonathan Reyes.
The nuance is foreign holding companies; you still walk to the natural person and file MU2 for that person. The mistake is stopping at the fund level; the consequence is an incomplete ownership chain and a 60-day delay. The misconception is that LP limited partners under 25% can be ignored; they can, but only if no LP crosses 25%.
Item 8: Criminal, Regulatory, and Civil Disclosure (MU1, Section 5)
Every “yes” answer demands a written explanation and supporting documents. Disclose everything, even sealed or expunged matters, because NMLS rules override state seal laws for licensing.
Example entry: David Chen answers Yes to a 2017 FINRA settlement, attaches the AWC, and writes a 400-word explanation including remediation.
The edge case is a foreign regulatory action; you still disclose, with a certified English translation. The mistake is omitting a dismissed matter; the consequence is a misrepresentation finding under § 200.18 that can permanently bar the applicant. The misconception is that DUIs do not count; they do for control persons.
Item 9: Financial Statements (MU1, Section 6)
Upload audited financial statements for the prior two years, plus an interim statement no older than 90 days. Statements must be U.S. GAAP, prepared by an independent CPA.
Example entry: Coinhaven Holdings Inc. uploads its 2024 and 2025 audits from Marcum LLP and a March 31, 2026 interim statement signed by the CFO.
The nuance is a startup with no audit history; NYDFS will accept reviewed statements plus an audit commitment letter, but capital required will be higher. The mistake is uploading a parent’s consolidated audit without a separate sub schedule; the consequence is a Capital Determination redo. The misconception is that crypto holdings can be marked at spot without disclosure; ASC 350-60 disclosures are mandatory.
Item 10: Surety Bond or Trust Account (NY VCBA Checklist Item 7)
Under § 200.9, every licensee must post a surety bond or hold funds in trust in a dollar amount NYDFS sets case by case. The minimum floor in practice is $500,000, and large custodians have been required to post $10 million or more.
Example entry: Bridgekey Custody LLC uploads a commitment letter from Travelers Casualty and Surety for a $2,000,000 bond, with the obligee left blank for NYDFS to fill in.
The nuance is the trust account alternative; you can hold the same dollar amount in a segregated NY-chartered bank account, which avoids bond premiums but ties up working capital. The mistake is binding the bond before NYDFS sets the amount; the consequence is wasted premium. The misconception is that the bond covers customer losses; it covers the state’s enforcement costs, not customer claims.
Item 11: Capital Determination (NY VCBA Checklist Item 8)
§ 200.8 lets NYDFS set minimum capital based on assets, liabilities, leverage, customer liabilities, and risk profile. There is no fixed minimum, but smaller exchanges typically end up at $500,000 to $2 million and larger custodians at $10 million plus.
Example entry: Stable Issuer Trust Co. submits a capital model showing $25 million in customer reserves backed 1:1 by U.S. Treasuries, then proposes $5,000,000 in regulatory capital above reserves.
The nuance is permissible investments; capital must be in cash, U.S. Treasuries, or other instruments NYDFS pre-approves. The mistake is counting the founder’s crypto holdings as capital; the consequence is a rejected model. The misconception is that capital and reserves are the same; reserves back customer obligations, capital is on top.
Item 12: AML and BSA Program (NY VCBA Checklist Item 11)
§ 200.15 requires a board-adopted AML program with a designated officer, written policies, independent testing, and ongoing training. It must align with FinCEN’s MSB rules and OFAC screening.
Example entry: Coinhaven Holdings Inc. uploads a 142-page manual, names Priya Shah as the BSA Officer, and attaches her résumé plus board minutes adopting the program.
The nuance is travel-rule compliance; § 200.15(h) extends the FinCEN Travel Rule to virtual currency transfers of $3,000 or more. The mistake is using a generic template; the consequence is a deficiency on every transaction-monitoring section. The misconception is that chain analytics tools satisfy SAR obligations; they do not, you still file FinCEN Form 111.
Item 13: Cybersecurity Program (NY VCBA Checklist Item 12)
§ 200.16 plus 23 NYCRR Part 500 require a written cybersecurity program, a CISO, annual penetration testing, MFA, encryption, incident response, and a 72-hour breach notice.
Example entry: Bridgekey Custody LLC uploads a Part 500-mapped policy, names Aisha Patel as the CISO, and attaches the most recent SOC 2 Type II report.
The nuance is the 2023 amendment to Part 500 that added a 24-hour ransomware payment notice; your policy must reflect it. The mistake is treating Part 500 as separate from Part 200; the agency reviews them together. The misconception is that cloud providers carry the cybersecurity burden; the licensee remains responsible.
Item 14: Business Continuity and Disaster Recovery (NY VCBA Checklist Item 13)
§ 200.17 requires a written BCP/DR plan covering data backups, alternative sites, succession, customer communications, and annual testing.
Example entry: Stable Issuer Trust Co. uploads a 64-page BCP showing a hot site in Ashburn, VA, an annual tabletop exercise, and named successors for the CEO and CISO.
The nuance is custody-specific recovery; if you lose access to private keys, the BCP must show a multi-sig recovery quorum. The mistake is copying a bank BCP without crypto-specific scenarios; the consequence is a deficiency. The misconception is that quarterly tests are required; annual is the floor, but quarterly is recommended.
Item 15: Consumer Protection Disclosures (NY VCBA Checklist Item 15)
§ 200.19 requires written disclosures of material risks, all fees, and the irrevocability of virtual currency transfers, plus a receipt for every transaction.
Example entry: Coinhaven Holdings Inc. uploads a 9-page Risk and Fee Disclosure plus a sample transaction receipt showing the asset, USD equivalent, network fee, and exchange fee.
The nuance is non-English disclosures; if you market in Spanish or Chinese, you must provide the disclosures in those languages. The mistake is hiding fees in a separate fee schedule; the consequence is a § 200.19 violation. The misconception is that disclosures can be one-time; they must be re-presented at every material change.
Item 16: Background Investigation Authorization (MU2)
Each control person submits an MU2 authorizing a credit check, criminal history check, and FBI fingerprinting. Use NMLS-approved fingerprint vendors.
Example entry: Maria Lopez completes MU2, schedules fingerprinting at a Fieldprint location, and pays the $36.25 fee inside NMLS.
The nuance is foreign control persons; if a person has lived outside the U.S. in the past 10 years, you must add a foreign police certificate. The mistake is letting prints expire (they are valid 30 days for NMLS submission); the consequence is reprinting. The misconception is that an old FBI check from another state license counts; it does not.
Item 17: Application Fee Payment (NMLS Payment Screen)
Pay the $5,000 NYDFS application fee, the $100 NMLS processing fee, plus per-person credit and fingerprint fees. Payment is by ACH or credit card inside NMLS.
Example entry: Coinhaven Holdings Inc. pays $5,135 at submission ($5,000 + $100 + $35 in NMLS surcharges) plus $51.25 per control person.
The nuance is the supervisory assessment; once licensed, you owe an annual assessment under Financial Services Law § 206 ranging from roughly $50,000 to several million based on size. The mistake is paying by wire outside NMLS; the consequence is a delayed posting. The misconception is that the $5,000 is refundable; it is not.
Item 18: Attestation and Submission (MU1, Final Page)
A senior officer signs the attestation under penalty of perjury, certifying every statement and attachment is true and complete.
Example entry: Maria Lopez, CEO, e-signs the attestation on 05/27/2026 and submits.
The nuance is the corporate resolution authorizing the signer; upload it before submission. The mistake is letting outside counsel sign; only an officer can. The misconception is that submission means approval; it only starts the clock.
Three Filled-Out Examples Using Real Scenarios
Scenario 1: Coinhaven Holdings Inc., a Retail Crypto Exchange
| Form Section | What Coinhaven Enters |
|---|---|
| Legal Name (1A) | Coinhaven Holdings Inc. |
| DBAs (1B) | Coinhaven, HavenPay |
| Main Address (1D) | 77 Water Street, 8th Fl, New York, NY 10005 |
| Business Activities (Item 5) | Exchange Services; Receiving for Transmission; Buying/Selling as Customer Business |
| Direct Owners (Schedule A) | Maria Lopez 22%, David Chen 14%, Northstar Capital LP 32% |
| Surety Bond (§ 200.9) | $2,000,000 Travelers bond |
| Capital (§ 200.8) | $3,500,000 in U.S. Treasuries |
| AML Officer (§ 200.15) | Priya Shah, 12 years AML experience |
| CISO (§ 200.16) | Aisha Patel, CISSP, SOC 2 Type II |
| Application Fee | $5,000 paid via NMLS ACH |
Scenario 2: Bridgekey Custody LLC, an Institutional Custodian
| Form Section | What Bridgekey Enters |
|---|---|
| Legal Name (1A) | Bridgekey Custody LLC |
| Business Activities (Item 5) | Storing, Holding, or Maintaining Custody Only |
| Main Address (1D) | 1221 Avenue of the Americas, New York, NY 10020 |
| Direct Owners (Schedule A) | Bridgekey Holdings Inc. 100% |
| Indirect Owners (Schedule B) | Jonathan Reyes 41%, Sequoia Crypto Fund III 28% |
| Surety Bond | $10,000,000 segregated trust at BNY Mellon |
| Capital | $15,000,000 cash and Treasuries |
| Custody Architecture | 3-of-5 multi-sig, geographically split HSMs |
| Insurance | $250M crime + specie policy from Marsh |
| Application Fee | $5,000 plus $51.25 per 7 control persons |
Scenario 3: Stable Issuer Trust Co., a Stablecoin Issuer
| Form Section | What Stable Issuer Enters |
|---|---|
| Legal Name (1A) | Stable Issuer Trust Co. |
| Business Activities (Item 5) | Controlling, Administering, or Issuing a Virtual Currency |
| Reserve Model | 1:1 backed by U.S. Treasuries under 90 days |
| Reserve Custodian | State Street Bank and Trust |
| Attestation Cadence | Monthly by Grant Thornton, aligned to NYDFS Stablecoin Guidance |
| Surety Bond | $5,000,000 |
| Capital | $5,000,000 above reserves |
| Redemption Policy | T+2, no fee, written into white paper |
| AML Travel Rule | Notabene integration, $3,000 threshold |
| Application Fee | $5,000 plus indirect owner MU2 filings |
How to File the Completed Form
NYDFS supports three filing channels, but only one is current.
- NMLS (preferred): Submit through your NMLS Company Account. The $5,000 NYDFS fee plus NMLS surcharges post automatically. Processing time is 18 to 24 months. Proof-of-filing is the NMLS receipt and the NY pending-application status indicator.
- Mail (legacy): Hard-copy applications go to NYDFS, Virtual Currency Unit, One State Street, New York, NY 10004-1511. Pay by certified check payable to “Superintendent of Financial Services.” Keep the certified-mail green card. NYDFS will likely re-route you back to NMLS.
- In-person delivery: Permitted at One State Street, New York, NY, between 9 a.m. and 4 p.m. Get a date-stamped receipt at the security desk.
- Fax: Not accepted.
After submission, expect an acknowledgement letter within 5 business days assigning a case number and a primary examiner. Save that letter; you cite the case number on every follow-up.
What Happens After You File
Within 30 to 60 days, NYDFS issues an initial completeness review letter. This letter either accepts the file as complete or lists deficiencies, and you have 30 days to cure each one. Most applicants receive at least two rounds of deficiency letters.
Once the file is complete, the substantive review begins. Examiners interview the CEO, CISO, BSA Officer, and Chief Compliance Officer, often on-site at One State Street. They run wallet-architecture walk-throughs, AML transaction-monitoring demos, and tabletop incident-response exercises.
If the agency intends to approve, you will receive a draft order with conditions, which often includes capital adjustments, key-person commitments, and a launch limitation (such as a customer cap for the first 6 months). You sign and return; NYDFS issues the license. If denied, Financial Services Law § 309 gives you 30 days to request a hearing.
After approval, you owe quarterly reports under § 200.14, an annual cybersecurity certification under Part 500, and the annual supervisory assessment under § 206. The license is not transferable; a change in control under § 200.11 requires a fresh approval.
Mistakes to Avoid When Filling Out the Form
- Listing a marketing name in Item 1A instead of the legal name, which triggers an automatic deficiency.
- Forgetting a 10%+ owner on Schedule A, which the agency catches via Schedule B and treats as a misrepresentation.
- Uploading a parent’s consolidated audit without a separate subsidiary schedule, which forces a Capital Determination redo.
- Using a generic AML manual without NY-specific transaction monitoring, which fails § 200.15 review.
- Omitting Part 500 mapping in the cybersecurity policy, which has been the second-most cited deficiency since 2024.
- Binding a surety bond before NYDFS sets the amount, which wastes premium dollars and still requires a re-bond.
- Hiding fees in a separate schedule rather than the § 200.19 disclosure, which is treated as a consumer-protection violation.
- Letting fingerprint cards age past 30 days, which forces re-printing and adds 30 days.
- Failing to disclose a sealed criminal matter, which can permanently bar the control person under § 200.18.
- Listing a P.O. Box for the principal office, which violates the physical-presence expectation in § 200.10.
- Submitting the application before the EIN is issued, which kills the IRS cross-check.
- Skipping the corporate resolution authorizing the attestation signer, which voids the submission.
Do’s and Don’ts
- Do lock the cap table 30 days before submission, because mid-review changes restart MU2 review.
- Do hire a former NYDFS examiner or counsel familiar with the agency’s industry letters, because internal language matters.
- Do pre-clear novel custody architectures with the Virtual Currency Unit before filing, because surprises in review cost months.
- Do stand up the AML and cybersecurity programs at least 6 months before submission, because the agency wants live evidence.
- Do budget at least $750,000 in legal and consulting fees, because that is the median outside-counsel spend for a BitLicense.
-
Do keep a deficiency-tracker spreadsheet from day one, because reviewers cite specific item numbers.
-
Don’t submit before audited financials are in hand, because reviewed statements add capital pressure.
- Don’t treat the trust charter and BitLicense as interchangeable, because they have different boards, capital, and exam regimes.
- Don’t launch any NY-customer activity before the license posts, because § 408 penalties accrue daily.
- Don’t rely on a chain-analytics vendor to satisfy SAR filing, because the licensee files FinCEN Form 111 directly.
- Don’t name a CISO who reports to the CEO without independence, because § 200.16 expects board-level access.
- Don’t assume staking, lending, or NFT marketplaces are out of scope, because the NYDFS Greenlist guidance treats most of them as in scope.
Pros and Cons of Filing on Your Own vs. With Help
Pros of filing with experienced outside counsel:
- Faster deficiency turnaround, because counsel knows examiner expectations word-for-word.
- Cleaner Capital Determination, because counsel benchmarks against approved peers.
- Lower risk of misrepresentation findings, because counsel scrubs MU2 disclosures.
- Pre-cleared custody architecture, because counsel can request informal staff feedback.
- Stronger negotiating position on conditional approvals, because counsel has seen prior orders.
Cons of filing with outside counsel:
- Median spend of $750,000 to $1.5 million through licensing.
- Counsel can over-paper the file, slowing the agency.
- Founders learn less about their own compliance program.
- Conflicts of interest if the firm represents competitors.
- Time zone friction for non-U.S. founders working with NY-based firms.
Pros of filing pro se:
- Lower cash burn at the seed stage.
- Founders own the compliance narrative.
- Direct examiner relationships from day one.
- Faster internal decisions.
- Deeper post-license operational knowledge.
Cons of filing pro se:
- Far higher deficiency rate; first-pass acceptance is rare.
- Six-figure mistakes on capital and bond amounts.
- Misrepresentation risk on disclosure items.
- No pre-clearance access for novel structures.
- Total review timelines can stretch past three years.
BitLicense vs. New York Limited Purpose Trust Charter
| Feature | BitLicense / Trust Charter |
|---|---|
| Statute | 23 NYCRR Part 200 / Banking Law § 102-a |
| Application Fee | $5,000 / $125,000+ investigation fee |
| Typical Capital | $500K–$10M / $10M–$50M minimum |
| Powers | Virtual currency activity only / Fiduciary plus virtual currency |
| Interstate Reach | NY-only license / Trust powers recognized in many states |
| Examination | Targeted virtual currency exam / Full bank-style exam |
| Timeline | 18–24 months / 24–36 months |
| Examples | Coinbase, Robinhood Crypto / Gemini, Paxos, NYDIG |
FAQs
Is the BitLicense application fee refundable if I withdraw?
No. The $5,000 fee under § 200.5 is non-refundable, even if you withdraw the same day or NYDFS issues an early deficiency letter that you cannot cure.
Can a foreign company hold a BitLicense without a U.S. subsidiary?
No. NYDFS requires a U.S. legal entity, a NY registered agent, and a U.S. principal office, so foreign applicants form a Delaware or NY sub before filing.
Do I need a BitLicense if I only serve institutional NY clients?
Yes. § 200.2(q) does not exempt institutional activity, so any custody, exchange, or transmission for a NY-based institution requires the license.
Does Item 5 require me to check every activity I might offer in the future?
No. Check only current activities; new ones go through a § 200.10 material change application later.
In Schedule A, do I list a 9.9% owner?
No. Schedule A captures 10% and above only, but a 9.9% owner who exercises control still appears on Schedule B.
In Item 8, must I disclose a sealed juvenile matter?
Yes. NMLS rules override state seal laws for licensing, so disclose it with the explanation marked confidential.
Does staking-as-a-service require a BitLicense?
Yes. NYDFS treats custodial staking as covered activity under § 200.2(q), and several 2024 enforcement actions confirmed it.
Can I use the same AML manual as my federal MSB registration?
No. The manual must be tailored to § 200.15, including travel-rule procedures and NY-specific OFAC controls beyond the FinCEN baseline.
Do I need a separate cybersecurity policy from Part 500?
No. One policy can satisfy both, but it must explicitly map every Part 500 section and § 200.16 requirement.
Can I begin onboarding NY customers after submission but before approval?
No. § 408 imposes daily penalties for unlicensed activity, so wait for the signed order before any NY-customer onboarding.
Is the supervisory assessment the same every year?
No. The annual assessment under Financial Services Law § 206 scales with size and risk, so it changes year to year.
Does a stablecoin issuer need both a BitLicense and reserve attestations?
Yes. § 200.2(q)(5) covers issuance, and the 2022 stablecoin guidance adds monthly reserve attestations and redemption-at-par rules.
Can outside counsel sign the MU1 attestation?
No. Only an authorized officer may sign under penalty of perjury, with a board resolution on file.
How long does NYDFS take to review the first round of deficiencies?
Yes, expect a response inside 30 to 60 days, although complex custody and stablecoin files often run to 90 days for the first round.
Related reading
- How to Fill Out California DFPI Money Transmitter License Application + FAQs
- How to Fill Out New York DFS Insurance Producer License – Business + FAQs
- How to Fill Out New York DFS Money Transmitter License + FAQs
- How to Fill Out New York DFS Public Adjuster License (w/Examples) + FAQs
- How to Fill Out the Washington DFI Money Transmitter License (NMLS Company Form MU1) + FAQs
- How to Fill Out the Washington DFI Money Transmitter License Application + FAQs
- How to Fill Out New York Form IT-558 (w/Examples) + FAQs