Opinion  Opinion 17-007

Date:	10/24/2017
Organization:	Division of Banks
Docket Number:	17-007

Does the business of selling and buying bitcoin through kiosks require licensure by the Division

Ruben Sanchez

BSA Compliance Solutions

Via Electronic Mail

[e-mail]

 

Dear Mr. Sanchez:

This letter is in response to your correspondence dated September 12, 2017 on behalf of your client, SandP Solutions, Inc., dba Bitcoin of America (“BOA”) in which you request an opinion that the listed activities of BOA do not require a license under Massachusetts law.

Your correspondence explains that BOA is an Illinois corporation offering certain virtual currency exchange services. As noted in your letter, BOA facilitates virtual currency transactions by providing kiosks for customers to both purchase and sell virtual currencies, in addition to permitting customers to purchase virtual currency from BOA through BOA’s website. Your description also provides additional factual details regarding BOA’s operations.

The Division appreciates your inquiry regarding BOA’s business model and its efforts to comply with Massachusetts law. Based upon the information provided in your correspondence, however, the Division is unable to issue a formal legal opinion without receiving further analysis of BOA’s operations under Massachusetts law and the Division’s relevant opinions on this topic. For your reference, the Division has issued a limited number of opinions regarding cryptocurrency and the licensing requirements relative to the business of buying and selling bitcoins within the Commonwealth.  Enclosed please find the referenced opinions for your review.  If these opinions do not address your questions with regard to BOA’s operations and you would like to request a legal opinion from the Division, kindly refer to the Division’s Regulatory Bulletin 1.1-103, which provides helpful guidance on the Division’s requirements.

 

Sincerely,

 

Merrily S. Gerrish

Deputy Commissioner of Banks and General Counsel