# Currency exchange

Source page: https://protegra.io/licensing/activities/currency-exchange/

Buying and selling foreign currency for customers, in cash or electronically, needs a money transmitter / money services business (MSB) licence, a PI licence or a banking licence, under FATF Recommendation 14. A pure bureau de change in Europe usually only needs national registration; FX tied to a payment account needs a full PI authorisation.

## Definition

Buying and selling foreign currency for customers, in cash or electronically, as a bureau de change or FX service.

- FATF, Recommendation 14: money or value transfer services: [official text](https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Fatf-recommendations.html)

## Which licence you need

Licence families that typically permit this activity:

- [Money transmitter / money services business (MSB)](https://protegra.io/licensing/licences/money-transmitter/)
- [Payment institution (PI)](https://protegra.io/licensing/licences/payment-institution/)
- [Bank / credit institution](https://protegra.io/licensing/licences/bank/)

- [MSB · AustraliaRegistration as a remittance service providerRegistration as a remittance service provider (remittance network provider or independent remittance dealer)AUSTRAC](https://protegra.io/licensing/licences/money-transmitter/australia/)
- [MSB · British Virgin IslandsMoney Services Business Licence, Class A or Class BMoney Services Business Licence, Class A (money/electronic/mobile money transmission) or Class B (money orders, traveller's cheques, cheque cashing, currency exchange)BVI FSC](https://protegra.io/licensing/licences/money-transmitter/bvi/)
- [MSB · CanadaMoney services business (MSB) registrationMoney services business (MSB) registration (covers foreign exchange dealing, money transferring, virtual currency dealing, crowdfunding platforms and related services; a separate foreign-MSB registration applies to businesses without a place of business in Canada that direct services at Canadians)FINTRAC](https://protegra.io/licensing/licences/money-transmitter/canada/)
- [MSB · Dubai International Financial Centre (DIFC)Money transmitter licenceFinancial Services Permission for Providing Money Services restricted to Money Transmission only (Category 4)DFSA](https://protegra.io/licensing/licences/money-transmitter/difc/)
- [MSB · NetherlandsExchange institution licenceExchange institution licence (Vergunning wisselinstelling)DNB](https://protegra.io/licensing/licences/money-transmitter/netherlands/)
- [MSB · United StatesRegistration of Money Services Business (Form 107 / RMSB)FinCEN](https://protegra.io/licensing/licences/money-transmitter/united-states/)

## Where it can be licensed

| | EU/EEA passport | Domestic |
| --- | --- | --- |
| [Australia: Registration as a remittance service provider](https://protegra.io/licensing/licences/money-transmitter/australia/) | | ✓ |
| [British Virgin Islands: Money Services Business Licence, Class A or Class B](https://protegra.io/licensing/licences/money-transmitter/bvi/) | | ✓ |
| [Canada: Money services business (MSB) registration](https://protegra.io/licensing/licences/money-transmitter/canada/) | | ✓ |
| [Dubai International Financial Centre (DIFC): Money transmitter licence](https://protegra.io/licensing/licences/money-transmitter/difc/) | | ✓ |
| [Netherlands: Exchange institution licence](https://protegra.io/licensing/licences/money-transmitter/netherlands/) | | ✓ |
| [United States: Registration of Money Services Business (Form 107 / RMSB)](https://protegra.io/licensing/licences/money-transmitter/united-states/) | | ✓ |

## Frequently asked questions

### Does a physical bureau de change need a full payment institution licence?

Not usually. Immediate over-the-counter cash exchange, with no payment account involved, sits outside PSD2. The operator still needs a national bureau de change registration and has to run full anti-money-laundering identification on its customers.

### When does online currency exchange trigger payment licensing?

It does, once the currency is received, held on account or wired on to a third party. At that point the service becomes payment execution or money remittance, which needs a full PI, EMI or banking authorisation under the European payment directives.

## Sources

1. [FATF Recommendation 14: money or value transfer services](https://www.fatf-gafi.org/en/publications/Fatfrecommendations/Fatf-recommendations.html): retrieved 2026-09-24

Last verified 2026-09-24 · Author: Danil Marmysh · Reviewed by Anastasia Sidorenkova · © Protegra. Data: CC BY 4.0, cite "Protegra Licensing Atlas". Not legal advice.