FOR IMMEDIATE RELEASE
Date: November 24, 2025
Manhattan, NYC — The Federal Money Services Business Association (FedMSB) today announced the official release of its industry definition for Money Services Businesses (MSBs), establishing a unified framework to guide academic research, industry practice, and policy development.
Defining the Industry
Under FedMSB’s framework, a Money Services Business (MSB) is defined as any enterprise that provides services involving the handling, movement, exchange, storage, or conversion of monetary value, whether in physical currency, electronic payments, or digital value systems.
In its broad, industry-wide sense, MSBs encompass businesses engaged in:
1.Value transfer and remittance services;
2.Currency exchange or conversion;
3.Payment, settlement, or wallet-based services;
4.Stored-value and prepaid access;
5.Check cashing and cash management;
6.Services enabling the circulation of monetary or quasi-monetary value, including digital asset or virtual value transfer and exchange services.
According to FedMSB, this definition reflects the core economic function of MSBs:
enabling the circulation, exchange, and transfer of value for the public.
Bridging Research and Practice
FedMSB emphasizes that this industry-oriented definition integrates theoretical research with practical experience, providing a clear standard for businesses, academics, and policymakers alike.
“With the rapid evolution of payment technologies and digital assets, the industry needed a clear, authoritative definition of MSBs,” said Michael Mynn, Editor-in-Chief of Bitcurrency Journal.
“Our goal is to offer a standardized framework that aligns academic insights with industry practice, helping companies, regulators, and policymakers navigate the sector with clarity and confidence,” added Jenni, FedMSB spokesperson.
Distinguishing Industry and Regulatory Definitions
It is important to note that FedMSB’s industry definition differs from the regulatory definition under the U.S. Bank Secrecy Act (BSA), administered by FinCEN.
The industry definition emphasizes the full scope of MSB business functions, capturing the ecosystem of value circulation.
The regulatory definition identifies businesses that must register with FinCEN and comply with anti–money laundering (AML) regulations.
By providing this comprehensive framework, FedMSB aims to enhance understanding of the MSB sector, clarifying its functional breadth and supporting consistent interpretation across research, industry, and policy domains.
About FedMSB
The Federal Money Services Business Association is a national nonprofit trade association organized under IRC § 501(c)(6) and incorporated in the State of New York. We are not a money services business (MSB), nor do we engage in MSB-regulated activities. Rather, we serve as a neutral convener and coordinating body for a diverse community of licensed and registered MSBs, as well as their infrastructure, compliance, and fintech partners.
Founded to support the modernization of the MSB sector, FedMSB leads the development of MSB 2.0 — a forward-looking framework for digital-first, standards-aligned, and compliance-embedded operations. Through policy advocacy, industry certification, technical guidance, and educational resources, we aim to elevate the integrity, transparency, and innovation capacity of non-bank financial services.
Our Membership
FedMSB’s members include state-licensed money transmitters, digital payment providers, fintechs, and other regulated non-bank financial institutions. We also welcome associate members such as legal advisors, compliance experts, and technology vendors. Our membership reflects a broad cross-section of the MSB ecosystem — from national leaders to emerging platforms.