Can I offer a cryptocurrency as a form of payment without violating financial regulations in South Dakota? What are the requirements?

Cryptocurrency as a form of payment in South Dakota

South Dakota has not yet enacted specific regulations regarding the use of cryptocurrency as a form of payment. However, businesses that offer cryptocurrency as a payment option must comply with existing financial regulations in the state.

Compliance with Financial Regulations

Businesses must comply with federal regulations and the South Dakota Division of Banking’s guidance on virtual currency. The guidance states that virtual currency exchanges and administrators must register with the Division of Banking and comply with the Bank Secrecy Act and anti-money laundering regulations ^[3.1].

Other Requirements

Other requirements may apply depending on the nature of the business. For example, wholesale or other drug distributors that deal in controlled substances must register with the South Dakota Department of Health and with the DEA and comply with all applicable state, local, and DEA regulations ^[5.1].

Conclusion

While South Dakota has not yet enacted specific regulations regarding the use of cryptocurrency as a form of payment, businesses must comply with existing financial regulations and guidance from the South Dakota Division of Banking. Additional requirements may apply depending on the nature of the business.

Source(s):

• [3.1] Securing payment methods.
• [5.1] Controlled substance registration required.

Jurisdiction

South Dakota

• General