Licensing and Regulatory Frameworks

KYC and AML Basics

Licensable Activity

What is Licensable Activity In the context of a Money Services Business (MSB) or Money Transmitter License, a licensable activity refers to specific financial services that require regulatory approval before operation.

Letter of Sponsorship

What is Letter of Sponsorship A letter of sponsorship is a formal document in which one party, the sponsor, commits to support another party, the sponsored entity in specific operational, financial and compliance-related activities.

Money Transmission Law

What is Money Transmission Law. Money transmission law is the set of legal rules and frameworks that govern how companies can legally accept, transmit, or handle funds on behalf of others.

Money Transfer License for all the Countries

What is a Money Transfer License for all the Countries. A money transfer license for all the countries refers to the collection of regulatory approvals required for a company to legally send and receive funds across multiple jurisdictions worldwide.

Money Services Business License

What is a Money Services Business License. A money services business license is a regulatory authorization required for companies that provide specific financial services such as money transmission, currency exchange, or payment processing.

Crypto Asset Service Provider (CASP)

What is a Crypto Asset Service Provider (CASP). A crypto asset service provider (CASP) is an entity that offers services related to the management, exchange, storage, or transfer of digital assets. These services support individuals, businesses and institutions that participate in crypto markets.

New Banking License

What is a New Banking License. A new banking license is a regulatory authorization that allows a company to offer banking services using modern, often digital-first business models.

NY BitLicense

What are NY BitLicense. NY BitLicense is a regulatory license issued by the New York State Department of Financial Services (NYDFS) for companies or individuals engaged in virtual currency business activity in New York.

Firewall Money Services Business

Discover the concept of a firewall Money Services Business (MSB) or Money Transfer Operator (MTO) coined by Faisal Khan, CEO of Faisal Khan LLC. Learn how firewall MSBs bridge fiat and cryptocurrency systems, ensuring regulatory compliance and operational flexibility. Understand their role in mitigating risks and expanding market reach.

Digital Asset Service Provider (DASP)

What are Digital Asset Service Provider (DASP). A digital asset service provider (DASP) is an organization that offers specialized services for digital assets, including cryptocurrencies, stablecoins and tokenized assets.

Cryptocurrency Regulation

What is Cryptocurrency Regulation. Cryptocurrency regulation refers to the legal and supervisory frameworks established by governments and authorities to oversee cryptocurrency-related activities.

Minded to Authorise

What Is Minded to Authorise. Minded to authorise is a regulatory term used when a supervisory authority indicates its preliminary intention to grant approval or a license, subject to certain conditions being met.

Neo Bank License

What is a Neo Bank License. A neo bank license refers to the regulatory authorization that allows a neo bank to legally offer banking services, often through a fully digital model.

Program Manager (PMs)

What is a Program Manager. A program manager in the banking and financial services sector is responsible for overseeing a group of related initiatives that collectively support major business and strategic goals.

Principal License Holder (PLH)

What is a Principal License Holder (PLH). A principal license holder (PLH) is the main entity that holds legal authorization to conduct regulated money services within a jurisdiction.

Financial Regulatory Frameworks

What are Financial Regulatory Frameworks. Financial regulatory frameworks are the structured systems of laws, rules, guidelines and oversight mechanisms created by governments and authorities to govern financial institutions and markets.

Financial Regulator

What is a Financial Regulator. A financial regulator is a public authority or independent agency responsible for overseeing the financial services industry within a specific country or region.

Individual Taxpayer Identification Number (ITIN)

What Is an Individual Taxpayer Identification Number (ITIN). An individual taxpayer identification number (ITIN) is a tax processing number issued by the U.S.

Virtual Asset Service Provider (VASP)

What are Virtual Asset Service Provider (VASP).

Unlicensable Activity

What is Unlicensable Activity Unlicensable Activity refers to business or financial-related actions that either do not require a regulatory license to operate legally or cannot be licensed because they fall outside the scope of recognized financial regulation.

Permissible Investments

What is Permissible Investments Permissible investments are specific assets that licensed money transmitters in the United States are legally allowed to hold.

Regulatory Stack

What is Regulatory Stack A regulatory stack refers to the organized framework of rules, standards, and procedures that financial institutions and businesses implement to ensure compliance with local, national, and international laws.

Regulatory Sandbox

Discover how regulatory sandboxes allow fintechs to test new products in a live environment with regulatory guidance, balancing innovation with consumer safety.

Federally Chartered Banks

What are Federally Chartered Banks. Federally chartered banks are financial institutions in the United States that receive their banking charter from the federal government rather than from an individual state.

Surety Bond for Money Transmitter License

What is Surety Bond for Money Transmitter License A surety bond for a money transmitter license is a financial guarantee mandated by state regulators to ensure that money service businesses operate responsibly and ethically.

Sponsorship in Licensing

What Is Sponsorship in Licensing. Sponsorship in Licensing refers to a regulatory arrangement in which a licensed financial institution supports another company in meeting compliance and operational requirements so it can legally offer financial services.

Licensing

Understanding Licensing in the Financial Ecosystem Licensing is at the core of every regulated fintech and money transfer business.

De Novo Bank License

What are De Novo Bank License. A De Novo Bank License is the regulatory approval granted to establish a new bank, often referred to as a "de novo bank." The term “de novo” comes from Latin, meaning “from the beginning,” highlighting the startup nature of these institutions.

CASP vs VASP

What Is the Difference Between CASP and VASP. Understanding the difference between CASP and VASP is increasingly important as digital asset markets grow and regulators worldwide seek consistent ways to oversee emerging services.

Basel III

What is Basel III. Basel III is a globally accepted set of banking regulations designed to make banks stronger, safer and more resilient during economic stress.

Applying for a Banking License in the US

What Is Applying for a Banking License in the US. Applying for a Banking License in the US refers to the formal process of obtaining regulatory approval to operate as a legally recognized bank within the United States.

Agent of the Payee (ATOP)

What are Agent of the Payee (ATOP). Agent of the Payee (ATOP) is a financial intermediary appointed by a payee to receive and process payments on their behalf. In the U.S. money services sector, ATOP plays a vital role in facilitating secure, efficient transactions between payers and payees.