How to start a cryptocurrency exchange in the US
Starting a US crypto exchange means running a licensed money services business with state money transmitter licenses and AML rules for fiat operations.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20262 min readFact-checked
On this page
- A written AML program and a compliance officer come before license applications.
- Most states require a license before you serve residents.
- After launch, keep AML records, file reports, and protect private keys.
A cryptocurrency exchange lets customers trade crypto for dollars or other digital assets. US money transmission and AML rules shape every step.
What does starting an exchange require?
In the US, an exchange that holds or transmits customer funds usually is a money services business. That means federal registration and an AML program. Blockchain technology does not remove those duties.
How do you launch it step by step?
- 1Form company, appoint officerRegister an LLC or corporation and name a compliance officer before you apply for licenses.
- 2Register with FinCENFile as a money services business and adopt a written AML program. Federal registration is not enough.
- 3Apply for state licensesMost states require a license before you serve residents. New York adds its BitLicense.
- 4Secure bank and partnersSet up banking, payment processing, custody, and software before you accept funds. Partners review your licenses and AML program.
What must you do after launch?
Compliance continues after launch. Your AML program needs records, reports, and safeguards that run every day.
- Keep AML records for the required period.
- File required reports on time.
- Update risk assessments and train staff.
- Protect customer accounts and private keys.
Frequently asked questions
You usually need one in each state where you serve residents. New York has its own BitLicense.
You can run a crypto-only exchange, but most US exchanges need a bank or payment processor for dollars.
An exchange lets customers withdraw crypto. A broker often sells from its own inventory and may not allow withdrawals.
Yes, but the vendor is not the regulated business. You still must meet the same licensing and compliance rules yourself.
