I started a Decentralize Exchange for Cryptocurrency. I live in Arizona.
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I started a Decentralize Exchange for Cryptocurrency. I live in Arizona.
I have registered my business in Fincen for MSB. I am concern if I need an MTL license in Arizona.
Hello! To clarify, is the business Inc. in Arizona as well? Do you have any other presence in any other state significantly?
Hi yes in 2014 i registered and incorporated my business as LLC and it was doing a different services. Just this month, i requested a different services to start offering DEX and crypto gaming. I also requested a DBA doing business as name for it. i don’t have any presence on other states
Also just to clarify, decentralized exchange platform that i offer is noncustodial. all trades are happening in the smart contracts.
the dex is at magicdex.app
Ok got it! Let me answer your question for you: Arizona Revised Statutes Section 6-1201(17) defines "Money transmission" as: (i) Selling or issuing payment instruments to a person located in this state. (ii) Selling or issuing stored value to a person located in this state. (iii) Receiving money for transmission from a person located in this state. Section 1207 prohibits transmission in this form without a license. "Money" is broadly defined as basically any form of currency. So what does this mean for you? Given that your DEX operates non-custodial, with all trades executed via smart contracts, it may not fit the traditional definition of a money transmitter, but my biggest concern for you is that since AZ says that money is any money accepted anywhere, and doesn't exclude cryptocurrency, and even if you are not physically operating it like a bank, getting a license will prevent the DIFI from fining you or shutting you down. Does that help clarify things? I want to make sure I didn’t leave anything out.
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