US States Begin Mandating Cryptocurrency Bonds

The growing popularity of digital currencies has led several states in the US to mandate that companies involved in cryptocurrency trading obtain surety bonds to improve investor protection.

Surety bonds provide an additional layer of security for investors, safeguarding them against potential fraud or scams. According to regulations established by these states, businesses that engage in the transmission of digital currencies must be supported by surety bonds. The bond amount typically correlates with the transaction volume, ensuring that clients of money transmitters are protected.

“Cryptocurrencies offer numerous advantages that have addressed significant needs for their supporters, particularly in terms of facilitating seamless and secure transactions.”