Cryptocurrency Bank Licensing - Wyoming

About Wyoming

Wyoming’s financial system is vital to the state’s economy and to the provision of financial services to consumers and businesses.

Wyoming’s banking industry is well-established, with major banks, state-chartered banks, credit unions, and community banks. These organisations provide standard banking services such as deposit taking, lending, mortgages, and other financial goods.

Wyoming’s investment and asset management business is expanding. Asset management firms, investment advisors, and financial planning firms serve both individual and institutional clients in the state.

Wyoming is one of the 50 states of the United States. The trapezoid-shaped landlocked state is situated in the Mountain Division of the western US mainland. Wyoming borders Montana to the north, South Dakota and Nebraska to the east, Colorado and Utah to the south, and Idaho to the west.

Wyoming’s population in 2022 was 581,381, a 0.33% rise from 2021. Wyoming’s population in 2021 was 579,483, a 0.33% rise from 2020.

Wyoming’s official language is English, with over 90% of people speaking only English and less than 10% speaking another language. Wyoming residents speak with a Midwestern American accent.

The Wyoming Constitution is the state’s supreme law. It describes the organisation of government, basic human rights, and the authorities and responsibilities of various branches and offices.

Wyoming’s civil laws include a wide range of legal topics, including contracts, torts, property rights, family law, and others. These statutes lay the groundwork for civil courts to resolve conflicts between individuals and entities.

1. Regulatory Clarity and Certainty

Wyoming has enacted extensive law that is specifically geared to bitcoin banking activity. The Wyoming Division of Banking provides regulatory oversight and direction to businesses operating in the bitcoin ecosystem, providing clarity and confidence.

2. Legal Protection and Recognition

By receiving a Wyoming cryptocurrency bank licence, your company obtains legal recognition and protection under state law. This acknowledgment gives your activities credibility and legitimacy, promoting confidence among customers and potential partners.

3. Access to Banking Services

With a cryptocurrency bank licence, you can gain access to typical banking services such as maintaining accounts with financial institutions, obtaining payment processing solutions, and gaining access to fiat currencies. This has the potential to improve the efficiency and convenience of your cryptocurrency banking operations.

4. Collaboration Opportunities

Wyoming’s bitcoin-friendly ecosystem is attracting an increasing number of blockchain and cryptocurrency firms, including exchanges, startups, and service providers. Obtaining a bitcoin bank licence puts you in a position to cooperate with other industry participants, establish collaborations, and extend your network.

5. Customer Satisfaction

Operating a cryptocurrency bank in Wyoming can create trust in your customers. The license’s regulatory oversight and compliance requirements ensure that your operations follow industry standards and prioritise the protection of customer interests.

6. Enhanced Investor Confidence

Wyoming’s cryptocurrency-friendly laws, which includes the recognition of digital assets as property and explicit rules governing tokenized securities, may entice investors looking for a regulatory-friendly climate. A cryptocurrency bank licence can provide assurance to potential investors, strengthening their trust in the cryptocurrency.

7. Favorable Tax Environment

Wyoming has a business-friendly tax climate, with no corporation income tax, no franchise tax, and no personal income tax. This can lead to substantial tax savings for your bitcoin bank.

8. Innovative Regulatory Sandbox

Wyoming has established the “Financial Technology Sandbox,” a unique regulatory sandbox that allows businesses to test new goods and services in a controlled environment. This sandbox allows for experimentation and innovation while also protecting consumers.

9. Forward-Thinking Legislation

Wyoming has taken the lead in developing a regulatory environment that supports blockchain technology and cryptocurrencies. The state’s forward-thinking strategy positions it as a pioneer in cryptocurrency regulation, luring enterprises seeking a progressive regulatory environment.

General

License: Special Purpose Depository Institution
Timeframe for Approval: 6 to 7 months
Regulator: Wyoming Division of Banking

Company Structure

Local Director: At least two directors
Local Shareholder: At least one shareholder
Local Registered Office: Required
Local Staff: Required
Compliance Officer: Required
AML/KYC: Required
Audit: Required
Economic Substance: Required
Corporate Tax Rate: -
Currency: US Dollar (USD)
Minimum Paid-up Capital: -
Capital Requirement: $5,000,000
Tax Stucture: Prevailing US Tax Rates
  1. Business Formation
  2. Develop a Business Plan
  3. Capital Requirements
  4. Application Submission
  5. Regulatory Review
  6. Compliance and Auditing
  7. Approval and Licensing
  • Cryptocurrency Custody Services
  • Cryptocurrency Exchange Services
  • Payment Services
  • Fiat-to-Cryptocurrency Services
  • Cryptocurrency Loans and Financing
  • Cryptocurrency Investment Advisory
  • Cryptocurrency Asset Management
  • Regulatory Compliance Solutions
  • Data Security and Privacy Measures
  • Regulatory Reporting and Auditing

Documents required by all involved individuals

(including but not limited to directors, shareholders and beneficial owners)

  • Passport copy (Notarised)
  • Utility Bill issued within the last 3 months (Notarised)
  • CV or Resume for each involved individual
  • Two professional reference letters
  • Qualifications (Notarised)
  • Business Plan
  • Statements Of Physical Presence
  • Statement Of Financial Relationships
  • Declaration Of Legal Representative
  • Statement On Bank’s Proposed Online Presence
  • Marketing Material Disclosure

For Corporate Shareholders

  • Articles of Association in English
  • Registered office address documents (Notarised)
  • Company Register of director/s
  • Company Register of UBOs (shareholder register, or incumbency certificate, or share certificates)
  1. Formation of Wyoming business corporation.
  2. Preparation and drafting of shareholder & officer agreements
  3. Preparation and drafting of narrative business plan
  4. Prepare five year financial projections
  5. Preparation and drafting of current financial statements
  6. Preparation and drafting of personal financial statements for owners
  7. Identification and draft letters naming principal representative and auditor
  8. Draft and prepare required bank charter and prospectus
  9. Preparation and drafting application with Wyoming Division of Banking
  10. Respond and draft responses to DOB application inquiries.
  11. Facilitate and consummate bankcard relationship with Visa & Mastercard
  12. Preparation and drafting of policy agreements and related documents
  13. Facilitate and consummate IBAN/SWIFT and correspondent bank relationship
  14. Provide for required physical presence and local director
  15. Preparation and review of bank deposit, loan and related agreement