FAQs

Pursuant to R.S. 6:1382(8) “Virtual Currency Business Activity” means any of the following:

1. Exchanging, transferring, or storing virtual currency or engaging in virtual currency administration, whether directly or through an agreement with a virtual currency control services vendor.
2. Holding electronic precious metals or electronic certificates representing interests in precious metals on behalf of another person or issuing shares or electronic certificates representing interests in precious metals.
3. Exchanging one or more digital representations of value used within one or more online games, game platforms, or family of games for either of the following:
   1. Virtual currency offered by or on behalf of the same publisher from which the original digital representation of value was received.
   2. Legal tender or bank credit outside of the online game, game platform, or family of games offered by or on behalf of the same publisher from which the original digital representation of value was received.
4. “Virtual currency business activity” shall not include any of the following:
   1. Mining.
   2. Minting non-fungible tokens.
   3. Blockchain activities that do not involve any exchange, holding, sale, storing, or transfer of virtual currency to, for, or on behalf of any resident.

Applicants must meet the following minimum requirements for licensure:

1. Utilize the Nationwide Multistate Licensing System and Registry (“NMLS”) for all aspects of licensing.
2. Provide a surety bond in the minimum amount of $100,000, up to a maximum of $1,000,000, or a higher amount deemed appropriate by the Commissioner, up to a maximum of $7,000,000.
3. Demonstrate a tangible net worth of the greater of $100,000 or 3% of total assets for the first $100,000,000, 2% of additional assets for $100,000,000 to $1,000,000,000, and .5% of additional assets for over $1,000,000,000.
4. Pay an initial (nonrefundable) licensure fee of $5,000.

Persons seeking a virtual currency license can do so by accessing the NMLS Resource Center.  A checklist of requirements is available on that site.

Yes.  Please refer to R.S. 6:1386.2 (Protection of resident assets).

Applicants/licensees must pay an initial licensure fee of $5,000, and an annual renewal fee of $4,000.

All licenses issued by the OFI are annual in nature and need to be renewed for each calendar year.  The renewal period begins November 1st and closes on December 31st of each year. Annual license renewal applications submitted after December 31st and before March 1st of the following year will be charged a nonrefundable license renewal late fee in the amount of $1,500, in addition to the annual license renewal fee.  Failure to submit the renewal fee and late fee before March 1st will result in the expiration of the license without hearing or notification, and the license shall not be reinstated.  However, the person whose license has expired may apply for a new license, subject to all new license application requirements under the LMTA.  Prior to such application being complete and eligible for approval consideration, the applicant shall be subject to and pay unlicensed activity civil money penalties in an amount determined by the Commissioner.

A list of exemptions can be found under R.S. 6:1383 of the VCBA.

No.  Money transmission/transmitter activities are regulated under the Louisiana Money Transmission Act (LMTA)-R.S. 6:1031 et. seq.

Yes.  Please refer to R.S. 6:1389 (Virtual currency kiosks; maximum daily transaction limit; cancellation and refund), R.S. 6:1393.1(J) (Required disclosures), R.S. 6:1395 (Blockchain analytics), R.S. 6:1396( Anti-fraud policy), and R.S. 6:1397 (Enhanced due diligence policy).

The Nationwide Multistate Licensing System and Registry (“NMLS”), as defined in R.S. 6:1382(13), is a multi-state licensing system that allows companies and individuals to apply for and manage their licenses for each state through a secure and centralized website.  All persons licensed by the OFI are registered through the NMLS system.  You can determine whether a person is a licensed virtual currency provider/operator/company in Louisiana by going to the NMLS Consumer Access portal.

For concerns relating to the NMLS system, including your company and individual records, contact the NMLS Call Center at (855) 665-7123.  For specific questions relating to Louisiana licensing requirements, feel free to contact the Non-Depository Licensing Section at NMLS@ofi.la.gov or 225-925-4660.