For crypto founders looking to operate in New York, the BitLicense is one of the most high-profile—and high-stakes—regulatory hurdles.
Issued by the New York Department of Financial Services (NYDFS) (side note—our CEO Snigdha sits on the DFS’s Financial Innovation Board), the BitLicense governs virtual currency businesses and sets strict requirements for everything from cybersecurity to consumer protections.
While most founders focus on the regulatory obligations, today’s post is about the financial cost of getting and maintaining a BitLicense.
Here’s what crypto startups need to know.
The Upfront Costs of a BitLicense
Applying for a BitLicense isn’t just about paperwork. It requires time, expertise, and significant capital. Here’s a typical cost breakdown:
Application Fee
$5,000 (non-refundable)
Credit Report Fees
$15 per control person
Surety Bond or Trust Account
Typically $500,000+
Capital Requirements
Varies based on business model and NYDFS assessment
Legal & Compliance Costs
$100,000+ is common
For most early-stage crypto companies, the application phase alone can run well into six figures when you factor in legal support, compliance consultants, cybersecurity preparation, and internal team resources.
The Cost of Maintaining a BitLicense
Getting licensed is just the start. Maintaining a BitLicense is an ongoing financial and operational commitment.
Licensed firms are required to:
- Undergo regular examinations by NYDFS
- Meet capital and liquidity standards
- Maintain cybersecurity and consumer protection programs
- Submit quarterly and annual reports
- Pay quarterly assessments (five times per year), based on the firm's custody holdings and transaction volume
For most startups, these assessments translate to $15,000 to $80,000+ per year in direct regulatory fees—before accounting for the costs of audits, legal reviews, or compliance staffing.
Why This Matters
For crypto founders, these costs are more than just a line item. They can shape your go-to-market strategy, influence where you operate, and impact your product roadmap.
That’s why compliance planning shouldn’t be an afterthought—it should be a core part of your company’s growth strategy.
At Brico, we help crypto companies streamline licensing, compliance monitoring, and audit preparation, so you can focus on building products—not navigating paperwork.
