New Hampshire Cryptocurrency Laws

Relevant Statute

2017 New Hampsire Revised Statutes; Title XXXVI – Pawnbrokers and MoneyLenders; Chapter 399-G – Licensing of Money Transmitters NH Rev Stat § 399-G:3 (2017)

“Money Transmitter” Definition

“Money transmission” means: (a) Engaging in the business of selling or issuing payment instruments or stored value; or (b) Receiving currency or monetary value for transmission to another location. 399-G:1

Additional Definitions

“Convertible virtual currency” means a digital representation of value that: (a) Can be a medium of exchange, a unit of account, and/or a store of value; (b) Has an equivalent value in real currency or acts as a substitute for real currency; (c) May be centralized or decentralized; and (d) Can be exchanged for currency or other convertible virtual currency. “Currency” means the coin and paper money of the United States or of any other country that is designated as legal tender and that circulates and is customarily used and accepted as a medium of exchange in the country of issuance. “Monetary value” means a medium of exchange, whether or not redeemable in currency, and includes convertible virtual currency. “Payment instrument” means any electronic or written check, draft, money order, traveler’s check, or other electronic or written instrument or order for the transmission or payment of currency or monetary value, sold or issued to one or more persons, 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. 399-G:1

Exemptions

The provisions of this chapter shall not apply to: I. Any bank, trust company, savings and loan association, profit sharing and pension trust, credit union, thrift company, insurance company, or receivership, which may be chartered by this state or any other state or by any agency of the United States. II. The United States or any department, instrumentality, or agency thereof. III. A state, county, city, or any other governmental agency or governmental subdivision of a state. IV. 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. V. Retailers issuing stored value credits or gift cards. VI. A debt adjuster duly licensed pursuant to RSA 399-D that acts as a money transmitter for the sole purpose of providing a debt adjustment service to a consumer under terms of a contract issued pursuant to RSA 399-D and that has a surety bond on file with the commissioner under RSA 399-D in the amount of $100,000. VI-a. Persons who engage in the business of selling or issuing payment instruments or stored value solely in the form of convertible virtual currency or receive convertible virtual currency for transmission to another location. Such persons shall be subject to the provisions of RSA 358-A. VII. Other persons not within the intent of this chapter as the commissioner may designate by rule or order. 399-G:3

Registration Fees

$500 Application Fee $25 Additional Fee for each authorized delegate registration, up to a total maximum annual fee of $5,000 for all locations

Bond and Insurance Requirements

(a) Each money transmitter applicant shall post a continuous surety bond in the amount of $100,000. The surety bond shall be payable to the state of New Hampshire and the bank commissioner of the state of New Hampshire for the benefit of any person who is damaged by any violation of this chapter and shall be conditioned upon the licensee’s compliance with each provision of this chapter. 399-G:4

Capital Requirements

An applicant or licensee shall at all times maintain a net worth of the lesser of its average daily outstanding money transmissions for the prior calendar year or $1,000,000. 399-G:16 The application shall include a statement of net worth in all cases and an applicant shall demonstrate and maintain a positive net worth computed in accordance with generally accepted accounting principles. Net worth statements provided in connection with a license application under this section shall be subject to review and verification during the course of any examination or investigation conducted under the authority of RSA 399-G:13. 399-G:4

State Comments or Statements

On August 1, 2017, the state amended its Money Transmitter statute (N.H. Rev. St. Ann. §399-G:3) to exempt “Persons who engage in the business of selling or issuing payment instruments or stored value solely in the form of convertible virtual currency or receive convertible virtual currency for transmission to another location” from the state’s money transmission regulation. However, such transactions and persons will still be subject to the provisions of RSA 358-A, New Hampshire’s law regulating business practices for consumer protection.