(a) A person shall not engage in virtual-currency business activity, or hold itself out as being able to engage in virtual-currency business activity, with or on behalf of another person unless the person is:
- (1) licensed under subchapter 2 of this chapter to engage in virtual-currency business activity;
- (2) an authorized delegate of a person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity if such money services are within the scope of authority conferred by a written contract between the authorized delegate and the licensee;
- (3) exempt pursuant to section 2572 of this subchapter and engages in no licensable activity outside the scope of such exemption; or
- (4) exempt pursuant to section 2504 of this chapter and does not engage in money services outside the scope of such exemption.
- (b) A person that engages in virtual-currency business activity is engaged in the business of money transmission.
- (c) It is prohibited for a person to facilitate the provision of unlicensed virtual-currency business activity by another person that is required to be licensed under this subchapter, when the first person or the first person’s authorized agent receives notice from a regulatory, law enforcement, or similar governmental authority, or knows from its normal monitoring and compliance systems, or consciously avoids knowing that the unlicensed person is in violation of this chapter.
- (d) All provisions of this chapter, and any rule adopted under this chapter, that apply to a person licensed under subchapter 2 of this chapter to engage in virtual-currency business activity shall apply equally to any person required to hold a license pursuant to subsection (a) of this section that does not hold one. Nothing herein shall be interpreted to permit any such unlicensed person to engage in virtual-currency business activity or hold itself out as being able to engage in any virtual-currency business activity without a license.
(Added 2023, No. 110 (Adj. Sess.), § 48, eff. July 1, 2024.)