Digital Asset Business Bonds: California DFAL, Louisiana Virtual Currency, and New York BitLicense
2026-09-25
Most states fold virtual currency transmission into their existing money transmitter statute and bond requirement. California, Louisiana, and New York have each gone a different route, creating a distinct licensing regime, and a distinct bond, specifically for digital asset business activity.
California's Digital Financial Assets Law (DFAL) establishes a separate regulatory framework for digital financial asset business activity, with its own bonding requirement that sits alongside, or in some cases instead of, the standard money transmitter license depending on the specific activity involved.
Louisiana's Virtual Currency Business Act requires a separate Virtual Currency license, and its own bond, for businesses engaged in virtual currency business activity involving Louisiana residents, distinct from Louisiana's standard money transmitter license.
New York's BitLicense, formally 23 NYCRR Part 200, is one of the earliest and best-known virtual currency regulatory regimes in the country, administered by the New York Department of Financial Services, with its own bonding and net worth requirements separate from a standard MT license.
The practical takeaway: a company already licensed as a money transmitter in California, Louisiana, or New York may still need the separate digital-asset bond if its activity touches virtual currency, it's worth confirming both requirements rather than assuming the standard MT bond already covers it. Machaen Insurance Agency places both the base MTL bond and these specialty digital-asset bonds together as part of one program.
Frequently Asked Questions
Do I need both a standard MTL bond and a digital asset bond in these states?+
In California, Louisiana, and New York, virtual currency or digital-asset activity typically requires its own separate license and bond in addition to, or instead of, the standard money transmitter bond, depending on your specific activity.
What is New York's BitLicense?+
It's a virtual currency business license issued by the New York Department of Financial Services under 23 NYCRR Part 200, with its own bonding and net worth requirements, one of the first regulatory regimes of its kind.
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