Arkansas Cryptocurrency Laws

Relevant Statute

Uniform Money Services Act
23-55-101 to 23-55-207

“Money” Definition

“Money” means a medium of exchange that is authorized or adopted by the United States or a foreign government. The term includes a monetary unit of account established by an
intergovernmental organization or by agreement between two or more governments.
23-55-102

“Money Transmitter” Definition

(12) (A) “Money transmission” means selling or issuing payment instruments, stored value, or receiving money or monetary value for transmission.
(B) “Money transmission” does not include providing delivery services such as courier or package delivery services or acting as a mere conduit for the transmission of data.
23-55-102

Additional Definitions

“Payment instrument” means a check, draft, money order, traveler’s check, or other instrument for the transmission or payment of money or monetary value, whether or not negotiable. The term does not include a credit card voucher, letter of credit, or instrument that is redeemable by the issuer in goods or services.

“Monetary value” means a medium of exchange, whether or not redeemable in money.

“Currency exchange” means receipt of revenues from the exchange of money of one
government for money of another government.

23-55-102

Exemptions

This chapter does not apply to:
(1) the United States or a department, agency, or instrumentality thereof;
(2) money transmission by the United States Postal Service or by a contractor on behalf of the United States Postal Service;
(3) a state, county, city, or any other governmental agency or governmental subdivision of a State;
(4) a bank, bank holding company, office of an international banking corporation, branch of a foreign bank, corporation organized pursuant to the Bank Service Company Act, 12 U.S.C.
§§ 1861-1867 (Supp. V 1999), or corporation organized under the Edge Act, 12 U.S.C. §§ 611- 633 (1994 & Supp. V 1999) under the laws of a State or the United States if it does not issue,
sell, or provide payment instruments, stored value, or prepaid access through an authorized delegate that is not such a person;
(5) electronic funds transfer of governmental benefits for a federal, state, county, or governmental agency by a contractor on behalf of the United States or a department, agency, or
instrumentality thereof, or a State or governmental subdivision, agency, or instrumentality thereof;
(6) a board of trade designated as a contract market under the federal Commodity Exchange Act, 7 U.S.C. §§ 1-25 (1994), or a person that, in the ordinary course of business, provides clearance and settlement services for a board of trade to the extent of its operation as or for such a board;
(7) a registered futures commission merchant under the federal commodities laws to the extent of its operation as such a merchant;
(8) a person that provides clearance or settlement services pursuant to a registration as a clearing agency or an exemption from such registration granted under the federal securities laws to the extent of its operation as such a provider;
(9) an operator of a payment system to the extent that it provides processing, clearing, or settlement services, between or among persons excluded by this section, in connection with wire transfers, credit card transactions, debit card transactions, stored-value transactions, automated clearing house transfers, similar funds transfers, or prepaid access;
(10) a person registered as a securities broker-dealer under federal or state securities laws to the extent of its operation as such a broker-dealer; or
(11) a credit union regulated and insured by the National Credit Union Administration.
23-55-103

Registration Fees

$750 License/Registration Fee
$1,500 Application Fee

Bond and Insurance Requirements

(a) Except as otherwise provided in subsection (b), a surety bond in the amount of $50,000 plus $10,000 per location in this State where the applicant and its authorized delegates engage in money transmission or provide other money services, with the maximum required amount of the surety bond of $300,000, must accompany an application for a license to engage in money services.
(b) The surety bond must be in a form satisfactory to the Securities Commissioner.
(c) Every surety bond shall provide for suit on the bond by any person who has a cause of action under this chapter. The aggregate liability of the surety to all persons, cumulative or otherwise, may not exceed the principal sum of the bond.
(d) A surety bond must cover claims for so long as the commissioner specifies, but for at least five years after the licensee ceases to provide money services in this State. However, the commissioner may permit the amount of a surety bond to be reduced or eliminated before the expiration of that time to the extent the amount of the licensee’s payment instruments or storedvalue and prepaid access obligations outstanding in this State is reduced.
(e) The commissioner may increase the amount of a surety bond required to a maximum of $1,000,000 if the financial condition of a licensee so requires, as evidenced by reduction of net worth, financial losses, or other relevant criteria.
23-55-204

Capital Requirements

A licensee under this article shall maintain a net worth of at least $250,000 determined in accordance with generally accepted accounting principles.
23-55-207

State Comments or Statements

Arkansas Securities Department issued a No-Action letter on July 18, 2018, indicating that CEX.IO, company who provides currency exchange absent present of Fiat currency, is exempt from the licensing requirements of the Arkansas Uniform Money Services Act.
http://www.securities.arkansas.gov/!userfiles/CEX_IO%20LTD%2018-NA-0006.pdf