Definition ∞ A Money Transmitter License (MTL) is a state-level regulatory authorization required in the United States for businesses that transmit funds on behalf of others. For cryptocurrency companies, obtaining an MTL is often necessary for offering services that involve the exchange of fiat currency for digital assets, or the transfer of digital assets themselves. These licenses ensure compliance with anti-money laundering and consumer protection regulations. They are a significant hurdle for many crypto businesses.
Context ∞ The requirement for Money Transmitter Licenses is a major regulatory consideration for cryptocurrency businesses operating in the US, often leading to a complex and costly state-by-state licensing process. News frequently covers enforcement actions against unlicensed entities and legislative efforts to standardize or streamline these requirements. The ongoing discussion about federal versus state oversight for digital asset businesses often centers on MTLs.
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