A Louisiana crypto license—formally issued under the Louisiana Virtual Currency Businesses Act—can be a strategic asset, but only if you understand who needs it, what it costs, and how it fits with traditional money transmitter licenses.

What is a Louisiana crypto license?

A Louisiana crypto license is the authorization the Office of Financial Institutions (OFI) issues for “virtual currency business activity” with Louisiana residents. This license is separate from, but related to, the traditional money transmitter license that covers fiat money transmission.

For most startups, a Louisiana crypto license comes into play when you:

• Exchange, transfer, or store virtual currency for customers rather than just for your own account.
• Operate a wallet, exchange, or custody product that holds virtual assets on behalf of Louisiana users.
• Administer a token or digital asset that users can redeem or transfer within your platform.

Who needs a Louisiana crypto license?

Whether you need a Louisiana crypto license depends on your activities and volumes. The statute captures virtual currency business activity with Louisiana residents but carves out several important exemptions and thresholds.

Founders are more likely to need a Louisiana crypto license if they:

• Serve retail or SMB customers in Louisiana with custodial wallets, exchanges, or payment rails using crypto.
• Touch both crypto and fiat (for example, off‑ramping to bank accounts) in ways that look like money transmission.
• Exceed small de minimis thresholds that may otherwise allow registration or no licensure at very low volumes.

By contrast, many projects that only use crypto internally or sell goods and services for their own account may not trigger the full Louisiana crypto license requirement, though federal and other state obligations can still apply.

Related: Who Needs a MTL (Money Transmitter License)? 8 Common Company Types

Louisiana’s Virtual Currency Businesses Act – 2023 Updates

Many crypto-licensing guides mention that Louisiana’s Virtual Currency Businesses Act is early-stage startup-friendly as it offers a lighter registration track with minimal requirements for modest volumes of activity. Unfortunately, this information is out of date due to the legislative changes made in 2023.  The Act saw major changes to a number of its provisions with the signing of Senate Bill 185, Act 331, namely the rescinding of Section #1389 which allowed for license exceptions. If you’re looking to offer cryptocurrency services to Louisiana-based customers, know that you will need to be licensed, no matter the volume of your real or anticipated activity.

Core requirements for a Louisiana crypto license

Applying for a Louisiana crypto license means preparing a comprehensive, bank‑grade package rather than a quick form. Expect to submit your application through the nationwide licensing portal, with OFI as the primary regulator.

Founders should be ready to provide:

• Corporate and ownership details: Legal entity information, formation documents, cap table, organizational chart, and disclosures about control persons and major shareholders.
• Business plan and flow of funds: Clear description of products, customer segments, jurisdictions, transaction limits, and exactly how fiat and virtual currency move through your stack and counterparties.
• FinCEN MSB and AML program: Evidence of federal registration (for qualifying models) and a written AML/BSA program covering KYC/CIP, sanctions screening, transaction monitoring, SAR processes, and governance.
• Financial statements and net worth: Recent audited or reviewed financials, proof of minimum net worth, and a capital plan that supports your projected Louisiana crypto license activity.
• Surety bond: An electronic surety bond in an amount set or approved by OFI (typically $100K+), with possible adjustments based on volume and risk profile.
• Risk and compliance policies: Cybersecurity and information security policies, disaster recovery and incident response, vendor and outsourcing oversight, complaint handling, and recordkeeping procedures.

Treat the Louisiana crypto license application like a mini‑bank application: consistency across documents, clear governance, and realistic risk controls matter as much as the product story.

Fees, exams, and ongoing obligations

The cost of a Louisiana crypto license goes beyond the initial filing fee. Founders should plan for upfront, recurring, and ad‑hoc regulatory costs when budgeting Louisiana as part of a 50‑state crypto licensing roadmap.

Typical cost and supervision components include:

• Application and renewal fees: Non‑refundable application fees for a Louisiana crypto license are $5,000 for the license and $750 for registration. There’s an annual renewal fee of $4,000 for the license and $500 for renewing registration. Application and renewal fees are layered on top of NMLS processing fees. 
• Surety bond premiums: Ongoing premiums on your surety bond tied to the Louisiana crypto license amount, which can scale with transaction volume or regulator expectations.
• Examinations and reporting: Periodic regulatory exams, routine financial and activity reports, and ad‑hoc information requests from OFI once your Louisiana crypto license is active.
• Change‑of‑control approvals: Prior approvals or notifications when ownership, key executives, or core business models change, which can slow financings or product pivots if not planned.

Teams that model these Louisiana crypto license costs early tend to avoid unpleasant surprises when raising or entering enterprise contracts.

How a Louisiana crypto license fits with money transmitter licensing

A key nuance for founders is how a Louisiana crypto license interacts with traditional money transmitter licenses (MTLs). Louisiana regulates fiat money transmission separately, and some hybrid models end up needing both.

Consider these patterns:

• Crypto‑only custodial models often sit squarely under the virtual currency statute and rely primarily on a Louisiana crypto license, not a fiat MTL.
• Fiat–crypto–fiat rails (e.g., on‑ramps, off‑ramps, remittances in fiat funded by crypto sales) may trigger both the Louisiana crypto license and a standard money transmitter license, depending on the exact flow of funds.
• Enterprise and BaaS structures may leverage bank partners or licensed program managers, but the actual need for a Louisiana crypto license vs relying on a partner depends on who is the regulated “provider” to the end user.

For a scalable U.S. footprint, many companies pair a multi‑state MTL stack with a targeted set of crypto‑specific approvals, including a Louisiana crypto license where they have meaningful customer volume.

Related: How much do MTLs cost?

Practical tips for founders pursuing a Louisiana crypto license

To make a Louisiana crypto license application faster, cheaper, and less painful, founders can borrow playbooks from other high‑friction licensing regimes:

• Start with a precise fact pattern: Document your full flow‑of‑funds diagram and custody stack before drafting responses; it will drive how regulators classify your Louisiana crypto license obligations.
• Align documents across jurisdictions: Use a consistent business plan, risk framework, and ownership narrative so multi-state regulators see a coherent story, with Louisiana‑specific addenda layered on top.
• Operationalize compliance early: Even before approval, build processes for KYC, sanctions, transaction monitoring, and complaints so you can “live your policies” from day one of your Louisiana crypto license.
• Sequence states strategically: Model where Louisiana fits against other priority states and federal touchpoints so you do not over‑invest in low‑ROI licenses before hitting product‑market fit.

For crypto founders, a Louisiana crypto license is no longer optional once you have real Louisiana volume, enterprise partners, or investor scrutiny. Treated strategically, it becomes part of a broader licensing moat, not another regulatory checkbox.

Related: BitLicense and Crypto License Costs

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Disclaimer: This article is for informational purposes only and does not constitute legal, financial, or regulatory advice. Brico is not a law firm and does not provide legal counsel. Licensing requirements vary by state and depend on your specific business model and circumstances. You should consult with qualified legal counsel before making any licensing decisions or taking action based on this content.