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Can I offer a cryptocurrency as a form of payment without violating financial regulations in Arkansas? What are the requirements?

Cryptocurrency as a Form of Payment in Arkansas

In Arkansas, the use of cryptocurrency as a form of payment is not explicitly regulated. However, if you plan to engage in the business of money transmission, you must obtain a license from the Arkansas State Bank Department and comply with the requirements outlined in the Arkansas Money Services Act [1.3][3.1].

Requirements for Money Transmitters

If you plan to offer cryptocurrency as a form of payment and engage in the business of money transmission, you must obtain a license from the Arkansas State Bank Department. The application for a license permit must be in writing and under oath, submitted in the format prescribed by the State Bank Department, and accompanied by an initial permit fee of Five Hundred Dollars ($500.00) [3.1].

In addition, you must provide a financial statement showing that you have at least twenty thousand dollars ($20,000.00) in cash or liquid assets available for the operations of your business for each location for which you seek a license permit. The financial statement must be accompanied by a sworn affidavit from each person identified in the application as holding a 5% or more ownership interest in the applicant confirming the accuracy of the financial statement and an affirmative statement that you will maintain at least twenty thousand dollars ($20,000.00) in liquid or other cash assets for as long as you operate a money transmission business at that location [3.1].

You must also obtain an original surety bond in the amount of Fifty Thousand Dollars ($50,000.00) and made payable to the State of Arkansas, State Bank Department [3.1].

Conclusion

While the use of cryptocurrency as a form of payment is not explicitly regulated in Arkansas, if you plan to engage in the business of money transmission, you must obtain a license from the Arkansas State Bank Department and comply with the requirements outlined in the Arkansas Money Services Act [1.3][3.1].

[1.3]: AR ADC 023.00.1-101 [3.1]: AR ADC 031.00.2-IV

Source(s):
Jurisdiction

Arkansas