Nevada Cryptocurrency Laws

Relevant Statute

Nevada Revised Statutes 671; Issuers of Instruments for Transmission or Payment of Money

Additional Definitions

1.  “Check” means any check, draft, money order or other instrument used for the transmission or payment of money. “Check” does not include a traveler’s check. 2.  “Licensee” means any person licensed under this chapter. 671.010

Exemptions

1.  This chapter does not apply to any: (a) Bank, its parent or holding company or any subsidiary thereof, trust company, savings bank, savings and loan association, credit union, industrial bank or industrial loan and investment company, organized and regulated under the laws of this state or of the United States; (b) Foreign banking corporation licensed to do banking business in this state; or (c) Telegraph company providing a public message service. 671.020

Registration Fees

$500 Application Fee

Bond and Insurance Requirements

1.  Except as provided in NRS 671.110, each licensee shall have in force a surety bond payable to the State of Nevada for the use and benefit of any holder of any outstanding check sold or issued by a licensee in the normal course of business and for value in the following minimum principal sums: (a) For the first location granted in the license, $10,000; and (b) For each additional location in this State where its business is conducted directly or through an agent, $5,000. The maximum amount of any surety bond required under this subsection is $250,000. 7.  Whenever the Commissioner determines that the protection of the public so requires, the Commissioner may order that an increase be made in the principal sum of the bond of any licensee, except that the Commissioner may not order an increase of more than $10,000 if the licensee has submitted a current financial statement, or more than $15,000 otherwise. 671.100

Bond Alternatives and Additional Insurance Requirements

1.  In lieu of any surety bond, or any portion of the principal sum thereof as required by this chapter, a licensee may deposit with the State Treasurer or with any bank, credit union or trust company authorized to do business in this state as the licensee may select, with the approval of the Commissioner: (a) Interest-bearing stocks; (b) Bills, bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States; or (c) Any obligation of this state or any city, county, town, township, school district or other instrumentality of this state or guaranteed by this state,in an aggregate amount of, based upon principal amount or market value, whichever is lower, of not less than the amount of the required surety bond or portion thereof. 2.  The securities must be held to secure the same obligation as would the surety bond, but the depositor may receive any interest or dividends and, with the approval of the Commissioner, substitute other suitable securities for those deposited. 671.110

Capital Requirements

A certified financial statement, satisfactory to the Commissioner, showing that the applicant’s net worth exceeds $100,000, unless the applicant’s surety bond or the securities deposited pursuant to NRS 671.110 are in at least twice the minimum principal sum required by NRS 671.100. 671.050

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 Nevada opine on this subject matter, we consider this to be a state that would likely require a money transmitter license. Nevada Financial Institutions Division guidance states “State and federal regulators are evaluating and developing approaches to regulating virtual currencies and companies that deal in virtual currencies. Any company that offers to exchange, administer, or maintain virtual currencies may be subject to state regulation and licensing as well as federal regulation.” 

NEVADA FINANCIAL INSTITUTIONS DIVISION ISSUES CONSUMER AND INVESTOR GUIDANCE ON VIRTUAL CURRENCY