Money Transmitter License
MTL
A state license required to transmit money or convertible virtual currency on behalf of others.
Money transmission is regulated at the state level in the US. A company that receives money or value from one party to transmit it to another generally needs a Money Transmitter License (MTL) in each state where it has customers — potentially up to ~49 separate licenses, each with its own application, bonding, net-worth, and reporting requirements.
Many crypto businesses qualify as money transmitters under state law, in addition to registering as a money services business (MSB) federally with FinCEN. Licensing is time-consuming and capital-intensive, which is why mapping your licensing obligations early — before you launch in a state — is a core part of compliance planning.
Ongoing MTL obligations include periodic reporting, renewals, maintaining surety bonds and permissible investments, and submitting to state examinations.
This glossary entry is educational and does not constitute legal advice. Always consult qualified legal counsel for jurisdiction-specific guidance.