New York BitLicense Bond (Virtual Currency Business Activity)
Issued for businesses licensed in New York, backed by A-rated, Treasury-listed sureties where a fixed bond applies.
Overview
New York's BitLicense, issued under 23 NYCRR Part 200, licenses businesses engaged in virtual currency business activity involving New York residents, separate from the state's money transmitter license. Rather than a fixed statutory bond amount, BitLicense holders must maintain a surety bond or trust account in a form and amount the Superintendent of the New York State Department of Financial Services finds acceptable, based on the licensee's business model and whether it holds customer virtual currency.
Who Needs This Bond
- Cryptocurrency exchanges and custodians conducting virtual currency business activity involving New York residents
- Digital wallet providers and virtual currency payment platforms licensed under BitLicense
- Money transmitters expanding into virtual currency activity in New York
Obligee & Required Amount
Obligee: Superintendent of the New York State Department of Financial Services
Required amount: No fixed statutory amount. Set by the NYDFS Superintendent case by case; a trust account is accepted in lieu of a bond.
Worth confirming: This bond is structurally different from a standard MTL bond. NYDFS sets the amount case by case and allows a trust account as an alternative. Confirm your specific requirement directly with NYDFS.
How Much Does It Cost?
There is no statutory formula. NYDFS sets the required bond or trust account amount individually for each licensee, based on its business model, transaction volume, and whether it custodies customer virtual currency. Figures in the $500,000 range are commonly discussed in the industry as a typical starting point, but the amount is negotiated with NYDFS rather than fixed by law.
How This Bond Is Executed
Filing method: Discretionary/Not a fixed bond
Notarization: Not required
There is no fixed filing format. The regulator determines the acceptable form of security, bond or trust account, on a case-by-case basis for each licensee.
How to Get Bonded
Apply
Complete a short application with your business and coverage details.
Get Quoted
We shop the market among A-rated carriers for the most competitive terms.
Get Covered
Sign your agreement and receive your bond or policy, often within a few business days.
Stay Compliant
We track renewal dates so your coverage stays active without a lapse.
Frequently Asked Questions
Is this the same as New York's money transmitter bond?+
No. BitLicense is a separate authorization from New York's money transmitter license. A company doing both money transmission and virtual currency business in New York needs both, one doesn't substitute for the other.
How much is the BitLicense bond?+
There's no fixed amount. NYDFS determines the required bond or trust account amount for each licensee individually, so we work directly with the Superintendent's office to confirm your specific requirement.
Can I use a trust account instead of a bond?+
Yes. NYDFS regulations allow a BitLicense holder to satisfy this requirement with either a surety bond or a trust account for the benefit of customers, whichever the Superintendent finds acceptable for your business.
Is this bond filed through NMLS?+
No. BitLicense is applied for directly with NYDFS rather than through the Nationwide Multistate Licensing System, unlike New York's standard money transmitter license.
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