CirKor Trading Center: The Importance of the US MSB License
An increasing number of people are paying attention to a license called MSB in the United States, which seems to have become a basic standard for exchanges. Whether it’s an exchange or a project party, what is the use of the US MSB license? Our exchange will explain the significance of the US MSB license.
MSB stands for Money Services Business, one of the main financial licenses in North America, and it is highly recognized and authoritative.
What is the use of the US MSB license? This article analyzes the well-known blockchain exchange license, the process of obtaining the US MSB license, and overall, the application for a US license is currently very strict. Blockchain and exchanges are among the friendly and prioritized sectors for choosing this license, which offers advantages in terms of registration cycle, cost-effectiveness, and usage scope. The US license is issued by the US Financial Management Authority. After registering a US company, the license application is submitted in the company’s name. It is understood that the review process will become increasingly stringent, and not every country issues financial licenses for digital currency.
The US MSB license is a type of financial license regulated and issued by the US Treasury Department. It primarily regulates businesses and companies involved in money services, including digital currency, virtual currency transactions, ICO issuances, foreign exchange, international remittances, and other related activities. Companies engaged in these activities in the US must apply for an MSB license to operate legally. This license is mandatory for all companies operating digital currency businesses in the US.
The US MSB license is regulated and issued by FinCEN (the Financial Crimes Enforcement Network under the Treasury Department) and is recognized and applicable in all 51 states of the US. Except for a few exceptions, all money services businesses in the US must renew their MSB license with FinCEN every two years. To apply for a US MSB license, a company must be registered in the US, and the company name must not be duplicated. FinCEN imposes fines, civil penalties, and criminal penalties for violations.
In March 2013, FinCEN issued the «FinCEN Guidance on the Application of FinCEN's Regulations to Persons Administering, Exchanging, or Using Virtual Currencies,» which states that cryptocurrency 「administrators」 (such as asset issuers) and 「exchangers」 (such as exchanges) providing services to US citizens fall under the MSB category of the US Bank Secrecy Act (BSA) and must apply for an MSB license with FinCEN.
Currently, although regulatory policies for the cryptocurrency field vary across countries, the mainstream trend is to strengthen regulation, raise industry entry standards, and protect investors' rights. Many countries have adopted licensed management of the crypto market to ensure the industry’s standardized and healthy development.
Our exchange is a comprehensive trading center with multiple legitimate operating licenses. The quality and quantity of MSB licenses reflect the overall strength of an exchange and its confidence and determination to invest in the future. This plays a crucial role in enhancing the exchange's brand and consolidating user confidence.
