Indiana Cryptocurrency Laws
“Money Transmitter” Definition
Sec. 13. (a) As used in this chapter, “money transmission” means an activity that:
(A) the sale or issuance of payment instruments primarily for personal, family, or household purposes; or
(B) engaging in the business of:
(i) receiving money for transmission from; or
(ii) transmitting money to; any location and by any means, including a payment instrument, wire, facsimile, or electronic transfer, primarily for personal, family, or household purposes; and
(2) is performed:
(A) from an office or place of business, wherever located; or
(B) over the Internet or by any other means of transmission.
(b) The term includes any activity described in subsection (a) that is performed by an authorized delegate, wherever located.
Sec. 3. As used in this chapter, “authorized delegate” means an entity designated by a licensee to:
(1) sell or issue payment instruments; or
(2) engage in the business of transmitting money on behalf of the licensee.
Sec. 10. As used in this chapter, “licensed activities” means money transmission activities:
(1) that a licensee engages in:
(A) from a place of business in Indiana; or
(B) with a consumer who is a resident of Indiana and who enters into the transaction in Indiana; and
(2) for which a licensee has obtained a license under this chapter.
Sec. 1. This chapter does not apply to the following:
(1) The United States or an instrumentality of the United States.
(2) The state, a political subdivision of the state, or an instrumentality of the state or of a political subdivision of the state.
(3) A bank, a bank holding company, an industrial loan and investment company, a credit union, a savings association, a savings bank, a mutual bank, or a mutual savings bank organized under the laws of any state or the United States.
(4) A stored value card, credit card, or debit card issued by a state or federally chartered financial institution.
Initial license application fee of $1,000.
License renewal fee of $500, plus $10 per location or delegated agent, up to a total maximum fee of $2,000 is due by December 31 each year.
Bond and Insurance Requirements
Sec. 27. (a) An application for licensure under this chapter must be accompanied by a surety bond in accordance with this section.
(b) The surety bond required under subsection (a) must:
(1) be in the amount of three hundred thousand dollars ($300,000);
(2) be in a form acceptable to the director;
(3) be in effect during the term of the license issued under this chapter;
(4) remain in effect during the five (5) years after the licensee ceases offering money transmission services in Indiana;
(5) be payable to the department for the benefit of:
(A) the state;
(B) individuals who reside in Indiana when they agree to receive money transmission services from the licensee; and
(C) entities that do business in Indiana when they agree to receive money transmission services from the licensee;
(6) be issued by a bonding, surety, or insurance company authorized to do business in Indiana and rated at least “A-” by at least one
(1) nationally recognized investment rating service; and
(7) have payment conditioned upon the licensee’s or any of the licensee’s employees’ or agents’ noncompliance with or violation of this chapter or other applicable federal or state laws or regulations.
Bond Alternatives and Additional Insurance Requirements
(b) Each licensee shall maintain a policy of insurance issued by an insurer authorized to do business in Indiana that insures the applicant against loss by a criminal act or act of dishonesty. The principal sum of the policy shall be equivalent to the amount of the surety bond required under section 27 of this chapter.
(c) A licensee must at all times possess permissible investments with an aggregate market value calculated in accordance with generally accepted accounting principles of not less than the aggregate face amount of all outstanding payment instruments issued or sold by the licensee or an authorized delegate of the licensee in the United States.
State Comments or Statements
Money or payment instrument is not defined. When money is not defined, there is a reasonable assumption that virtual currencies are deemed money or otherwise used as medium of exchange. Until such time that the State or the courts of Indiana opine on this subject matter, we consider this to be a state that would likely require a money transmitter license