Topic: What does it take to open a exchange in the USA? (Read 1915 times)

Not worth the potential legal hassle. If you have to stay in USA get a partner and host the exchange outside would be an easy solution. If its crypto only you have many choices with no worrys about banking.

There's another approach, which is to register as a broker/dealer with the SEC, and become an exchange listed with the SEC. That bypasses state regulation. But you have to pass the exams every broker passes, meet capital requirements, undergo a background check, have audits, pay for insurance, and be regulated. This interferes with the "take the money and run" business model used by most Bitcoin exchanges.

IT all depends on which state you are in.

First and foremost this is not legal advice, or by any means an exhaustive list of what you will need to do. 

Second don't listen to me or anyone else about this and launch without talking to a specialist attorney that is very familiar with MSB regulation/filing on federal, state, and local levels.  I recommend one that has worked within a government regulatory agency before as this can add political protection to you.  Crypto Exchanges in the USA are not a simple thing anymore.     

Under the United States Treasury Department Financial Crimes Enforcement Network (FINCEN) it doesn't matter if you don't deal with USD you are still facilitating currency conversions.  Don't forget in the United States you are dealing with multiple layers of government and bureaucracy, just because one agency says one thing another agency can say something else and regulate.  You will more than likely have to register with FINCEN, your state FINCEN equivalent, and possibly with your local government.  You may have to file regularly scheduled reports till the end of time and maintain records on certain transaction types and amounts.  This type of activity is called Money Services Businesses (MSB)and you need to obtain a BSA number form FINCEN.

Besides the regulatory aspects you need to be even more worried about protecting your clients coins!!!!!!!!!!!!!!!!!!!!!!!!!  You will need to follow bank rules when it comes to your databases. You need have  good security to protect against hackers. 

How are you going to convenience anyone to use your exchange?  Given the state of what has happened to other exchanges, its going to be hard for new exchanges with no funding to get off the ground.  This is going to be a big challenge for any limited funded exchange. 

don't do it

a recent bitcoin business in australia coinjar moved to the UK due to legislation

Step 1. Stick some servers under your desk;
Step 2. Wait for the black helicopters to descend

I think it depends on in which location u r. At NY, u'll probably need bitlicense.

What are the legal requirements to open a crypto exchange in the USA if you don't handle US dollars? and possibly bitcoin?