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What Is the Regulatory Definition of a “Money Transmitter” and Why Does It Apply to CEXs?

A business that transfers funds for the public; CEXs fit this by sending/receiving customer crypto/fiat, requiring FinCEN registration.
Greeks.Live14.11.25

What Is the Regulatory Definition of a “Money Transmitter” and Why Does It Apply to CEXs?

A money transmitter is a business that transmits or transfers funds on behalf of the public. This definition applies to CEXs because they receive and send customer funds, both fiat and crypto, to facilitate trades.

As a result, CEXs are typically required to register with FinCEN in the US and comply with strict federal and state AML/KYC regulations.

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