How much does BitLicense cost?

The cost of obtaining a BitLicense, a regulatory framework established by the New York State Department of Financial Services for businesses engaging in virtual currency activities, is a significant investment. The application fee alone stands at a hefty amount, posing a challenge for businesses looking to operate in the state.

Specifically, the initial non-refundable application fee for a BitLicense is set at $5,000.00. This figure represents just the starting point in the licensing process and does not encompass the potential costs associated with meeting the rigorous requirements and undergoing the comprehensive review by the DFS.

Beyond the application fee, applicants must also factor in the resources needed to prepare for the licensing process. This includes assembling a team with the expertise to navigate the complex regulations, conducting thorough due diligence on their business model, and ensuring compliance with all aspects of the BitLicense framework.

Once the application is submitted, the DFS conducts an exhaustive review of the applicant's business, including its risk management program, customer identification procedures, and anti-money laundering policies. This thorough examination can be both time-consuming and costly for businesses.

In addition to the initial application fee, BitLicense holders are also subject to ongoing compliance costs. These include annual renewal fees, as well as the resources required to maintain a robust compliance program that keeps pace with evolving regulations and industry standards.