Nevada’s regulatory position on cryptocurrency kiosks has moved, presently requiring a state money transmission license.
BitAML Senior Advisor Annelise Strader said Nevada suddenly and without declaration changed its administrative position on cryptocurrency kiosks.
After the last legislative session closing in May without passing a proposed cryptocurrency bill, Strader underscores the state’s regulatory group changed its translation of what constituted a money transmitter inside the state. Kiosks must be authorized by the state and will need a surety bond requirement.
Surety bonds are priced at $5,000 per kiosk and are given to the state as an insurance instrument for clients against business failure.
Strader initially talked with the state regulator on behalf of a BitAML client caught within the red tape. Months followed before a reply was given, Strader said.
State regulator Julie Hanivold stated they were waiting on the cryptocurrency regulation bill to be approved before taking action, following up with the Nevada Division of Financial Institutions. The regulator started investigating the matter a year ago. With the bill unable to pass, the regulator self-determined to reinterpret current statutes pertaining to state money transmissions.
With the new interpretation, any transfer of value—money, credit, virtual cash, or other—falls under the permit. Businesses must apply and complete a checklist to get a permit. Included within the list is a surety bond prerequisite of $10,000 upfront plus $5,000 for each area. Bond prerequisites max out at $250,000.
Hanivold said all prerequisites are publicly posted on the state’s website, but they have no plans of publishing a press release on the development. The regulator plans to call back a dozen or so businesses that have asked over the past year.
Paraphrasing discussion with Hanivold, she said: “We’re not going to go hunting and penalizing any kiosks, but six months down the road if any action hasn’t been taken, [we will begin notifying owners.]”