Northeast · Last reviewed 2026-07
Connecticut money transmitter license
Requirements, bond, timeline, and crypto notes for the Money Transmitter License — for companies preparing an application or diligence questionnaire.
Key requirements
- Regulator
- Connecticut Department of Banking
- License
- Money Transmitter License
- Statute
- Conn. Gen. Stat. § 36a-595 et seq. (money transmission)
- Surety bond
- Typically $300,000–$1,000,000; the Commissioner may set higher amounts for virtual currency licensees
- Net worth
- Commonly cited around $500,000 for transmitters; verify against current statute
- NMLS
- Required
- Application fee
- Roughly $1,875 plus investigation and NMLS fees, as of our last review
- Typical timeline
- 6–10 months
Crypto & virtual currency
Connecticut moved early: amendments expressly brought virtual currency inside the money transmission definitions under Conn. Gen. Stat. § 36a-595 et seq. — there is no separate "virtual currency endorsement." The Commissioner has explicit authority to set higher bond amounts for licensees dealing in virtual currency (bonds often run $300,000–$1,000,000, and can go higher). Connecticut has also layered on consumer-protection requirements for virtual currency money transmitters, including disclosure obligations and tighter rules around virtual currency kiosks/ATMs. Expect the Department to scrutinize how customer crypto is held and valued for permissible-investment and bonding analysis. Requirements change frequently — always verify current figures and interpretations directly with the state regulator before filing.
Frequently asked questions
Does Connecticut regulate virtual currency transmission?
Yes, explicitly. Virtual currency is inside Connecticut's money transmission definitions (Conn. Gen. Stat. § 36a-595 et seq.) — not a separate endorsement. The Banking Commissioner can require larger bonds from virtual currency licensees. Crypto exchanges and custodial wallets serving Connecticut residents should expect to need the license.
Why might my Connecticut bond be higher as a crypto company?
The statute gives the Commissioner discretion to set bond amounts for virtual currency licensees above the standard schedule, on the theory that crypto volatility increases consumer risk. Budget conservatively — bonds of $500,000 or more are not unusual for active crypto transmitters.
What should I prepare before applying in Connecticut?
A complete NMLS package: audited financials showing adequate net worth (commonly cited around $500,000), a board-approved BSA/AML program, flow-of-funds diagrams, custody documentation for digital assets, and background checks for control persons. Incomplete custody documentation is a common deficiency for crypto applicants.
This page is educational and does not constitute legal advice. Requirements change frequently — always verify current figures and interpretations directly with Connecticut Department of Banking before filing.