Virginia Cryptocurrency Laws

Relevant Statute

Code of Virginia, Chapter 19 of Title 6.2

“Money Transmitter” Definition

“Money transmitter” means a person engaged in the business of money transmission. 6.2-1900

Additional Definitions

“Monetary value” means a medium of exchange, whether or not redeemable in money. “Money transmission” means receiving money or monetary value for transmission by wire, facsimile, electronic means or other means or selling or issuing stored value. “Stored value” means monetary value that is evidenced by an electronic record. 6.2-1900

Exemptions

A. The provisions of this chapter shall not apply to: 1. The United States, or any department, instrumentality or agency thereof; 2. The Commonwealth, or any political subdivision thereof; 3. Any bank, trust company, savings institution, or credit union operating under the laws of the United States or any state or territory thereof, or other person to the extent the person provides money transmission services as an agent of one or more banks, trust companies, savings institutions, or credit unions operating under the laws of the United States or any state or territory thereof; or 4. Any private security services business, licensed under § 9.1-139, that transports or offers to transport money. 6.2-1902

Registration Fees

$1,000 Filing Fee

Bond and Insurance Requirements

The application for a license shall be accompanied by a surety bond satisfactory to the Commission in the principal amount as determined by the Commission. The amount of the bond shall be not less than $25,000 nor more than $ 1 million. The bond shall be conditioned as the Commission may require for the benefit of purchasers, payees, and holders of money orders sold by the licensee and its authorized delegates in the Commonwealth, and for the benefit of purchasers of money transmission services. If any material information provided to the Commission in an application changes during the investigation period, the applicant shall immediately notify the Commission. 6.2-1904

Bond Alternatives and Additional Insurance Requirements

As an alternative security device and in lieu of the surety bond required by subsection A, a license applicant may deposit with a financial institution designated by such applicant and approved by the Commission for that purpose, cash, stocks and bonds, notes, debentures or other obligations of the United States or any agency or instrumentality thereof, or guaranteed by the United States, or of the Commonwealth, or of a locality or other political subdivision of the Commonwealth, in an aggregate amount, based upon the principal amount or market value, whichever is lower, of not less than the amounts required by the Commission pursuant to subsection A. Such cash or securities shall be deposited and held to secure obligations established in subsection A, but the licensee shall be entitled to (i) receive all interest and dividends thereon and (ii) substitute, with the Commission’s prior approval, other securities for those deposited. The Commission may also direct the licensee, for good cause shown, to substitute other securities for those deposited. 6.2-1904

Capital Requirements

B. Each licensee shall at all times have a net worth of not less than $200,000, or a higher amount not to exceed $1 million as determined by the Commission, calculated in accordance with generally accepted accounting principles. Any person who was licensed under this chapter on July 1, 2009, shall have three years from that date to comply with the minimum net worth requirement of this section, during which period the licensee shall at all times have a net worth of not less than $100,000, or a higher amount not to exceed $1 million as determined by the Commission, calculated in accordance with generally accepted accounting principles. 6.2-1906

Money Transmission License Required for Crypto Exchange?

No (As long as it does not involve the transfer of fiat currency)

State Comments or Statements

Virginia put out a notice saying it does not regulate virtual currencies: http://www.scc.virginia.gov/bfi/files/virtcur.pdf