Memorandum 11-002 — Virtual Currency Transmission in South Dakota

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Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.

DIVISION OF BANKING
1601 N. Harrison Avenue, Suite 1, Pierre, SD 57501                                 MEMORANDUM
605-773-3421

NUMBER: 11-002

DATE:             May 25, 2019

TO:              SOUTH DAKOTA MONEY TRANSMITTERS

FROM:            BRET AFDAHL, Director

RE:              VIRTUAL CURRENCY TRANSMISSION IN SOUTH DAKOTA

        SDCL 51A-17-4 provides the following: “No person, except a person who is exempt
pursuant to the provisions of § 51A-17-3, may engage in the business of money transmission in this
state without obtaining a license as provided in this chapter and undergoing a criminal background
investigation through the division.” SDCL 51A-17-1(13) defines money transmission as the
“engagement in the business of the sale or issuance of payment instruments or stored value or of
receiving money or monetary value for transmission to a location within or outside the United
States by any means, including wire, facsimile, or electronic transfer.” It is the position of the South
Dakota Division of Banking that, as it relates to SDCL Chapter 51A-17, virtual currencies,
including cryptocurrencies like Bitcoin, are “monetary value.” Accordingly, entities that receive
virtual currency, including crypto currencies like Bitcoin, for transmission within or outside the
United States by any means, including wire, facsimile, or electronic transfer would likely be
required to obtain and maintain licensure pursuant to SDCL Chapter 51A-17 in order to operate in
South Dakota.

      South Dakota money transmitters that engage in virtual currency transmission are required
to complete the following:

          1. Update the money transmitter Nationwide Multi-State Licensing Service and Registry
             (NMLS) profile and list virtual currency transmission as a business activity.

          2. Complete the virtual currency sections of the Money Service Business Call Report each
             quarter.

        If you would like additional information, or if you have any questions, please do not hesitate
to contact the Division at 605-773-3421.