1. Understand the applicable laws and regulations in your jurisdiction.Different jurisdictions may have different laws and regulations applicable to the use of digital currencies. It is important to be aware of the relevant laws within your jurisdiction and to consult with qualified legal counsel if there are any questions or uncertainties.
2. Ensure compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. You should always be aware of the laws and regulations regarding AML and KYC, and take steps to ensure that you remain compliant with them.
3. Follow FinCEN guidance for money services businesses. If you intend to offer digital currency services in the U.S., you should familiarize yourself with the Financial Crimes Enforcement Network’s (FinCEN) guidance for financial institutions engaging in transactions involving virtual currencies.
4. Be aware of state regulations for virtual currency businesses. Depending on the services you offer and the states in which you do business, you may need to comply with additional state-specific requirements.
5. Understand Taxation and Reporting Requirements.The IRS has issued guidance on the taxation and reporting of virtual currency transactions. It is important to be aware of and comply with these requirements.