RS 1389 - Exceptions to licensure requirement; conditions
A. A person whose volume of virtual currency business activity in United States dollar equivalent of virtual currency will not exceed thirty-five thousand dollars annually may engage in virtual currency business activity with, or on behalf of, a resident under a registration without first obtaining a license pursuant to the provisions of this Chapter if the person does all of the following:
(1) Files with the department a notice in the form and medium prescribed by the department of its intention to engage in virtual currency business activity with, or on behalf of, a resident.
(2) Provides the information for an investigation pursuant to R.S. 6:1385.
(3) States the anticipated virtual currency business activity for its next fiscal quarter.
(4) Pays the department a registration fee in an amount determined by the department, not to exceed the reasonable costs of regulation.
(5) If required to register with the Financial Crimes Enforcement Network of the United States Department of the Treasury as a money service business, provides the department evidence of the registration.
(6) Provides evidence that the person has policies and procedures to comply with the federal Bank Secrecy Act and other applicable laws.
(7) Describes the source of funds and credit to be used by the person to conduct virtual currency business activity with, or on behalf of, a resident and provides evidence of, and agrees to maintain, the minimum net worth and reserves required pursuant to R.S. 6:1386 and sufficient unencumbered reserves for winding down operations.
(8) Provides the department with evidence that the person has in place policies and procedures to comply with the provisions of this Chapter.
(9) Provides the department with a copy of its most recent financial statement, whether reviewed or audited.
B. Before the virtual currency business activity of a registrant with, or on behalf of, residents exceeds thirty-five thousand dollars annually in United States dollar equivalent of virtual currency, the registrant shall file an application for a license pursuant to the provisions of this Chapter and may continue to operate after the activity exceeds thirty-five thousand dollars annually while the application for license is pending.
C. For good cause, the department may suspend or revoke a registration without a prior hearing or opportunity to be heard.
D. A registrant shall cease all virtual currency business activity with, or on behalf of, residents in the event of any of the following:
(1) If the department denies the registrant's application for a license pursuant to the provisions of this Chapter, one day after the registrant receives notice that the department has denied the application.
(2) If the department suspends or revokes the registration, one day after the department sends notice of the suspension or revocation to the registrant by a means reasonably selected for the notice to be received by the recipient in one day, to the address provided for receiving communications from the department.
(3) If the virtual currency business activity of the registrant with, or on behalf of, residents exceeds thirty-five thousand dollars annually in United States dollar equivalent of virtual currency and the registrant has not filed an application for a license pursuant to the provisions of this Chapter.
(4) The second anniversary date of the registration.
Acts 2020, No. 341, §1.