Utah Cryptocurrency Laws

Relevant Statute

Utah Code, Chapter 25 – “Money Transmitter Act” 7-25-101

“Money Transmitter” Definition

“Money transmission” means the sale or issuance of a payment instrument or engaging in the business of receiving money for transmission or transmitting money within the United States or to locations abroad by any and all means, including payment instrument, wire, facsimile, or electronic transfer. 7-25-102

Additional Definitions

(a) “Payment instrument” means a check, draft, money order, travelers check, or other instrument or written order for the transmission or payment of money, sold or issued to one or more persons, whether or not the instrument is negotiable. (b) “Payment instrument” does not include a credit card voucher, letter of credit, or instrument that is redeemable by the issuer in goods or services. 7-25-102


This chapter does not apply to: (1) the United States or a department or agency of the United States; (2) the state or a political subdivision of the state; or (3) a depository institution or a trust company organized under the laws of a state or the United States. 7-25-202

Registration Fees

$300 License/Registration Fee

Bond and Insurance Requirements

(3) (a) An applicant shall submit with an application filed under this chapter a surety bond satisfactory to the commissioner in the minimum sum of $50,000 to reimburse the state for expenses of any kind or nature that the department may incur in connection with an administrative or judicial proceeding against a licensee, former licensee, or seller relating to the issuance or sale of a payment instrument in the state. (b) A licensee shall maintain a surety bond meeting the requirements of Subsection (3)(a) for three years after the licensee ceases money transmission operations in the state. Except that the commissioner may permit the surety bond to be reduced or eliminated before the end of the three-year period to the extent that the amount of the licensee’s payment instruments outstanding in this state are reduced. (c) A surety bond shall remain in effect until cancellation, which may occur only after 30 days’ written notice to the commissioner. Cancellation may not affect liability incurred or accrued during that period. 7-25-204

Capital Requirements

(1) An applicant for a license shall: (a) demonstrate, and a licensee shall maintain, a net worth of not less than $1,000,000 as demonstrated by a financial statement for the most recent fiscal year that is prepared and certified by an independent auditor and is satisfactory to the commissioner. 7-25-203

State Comments or Statements

The state does not define money and the term payment instrument is overly broad and could encompass virtual currencies. Until such time as the state takes a stance, we will have to assume that a license is required.