Crypto exchanges don't need money transmitter licenses in Pennsylvania

posted 7 months ago
Pennsylvania’s Department of Banking and Securities has clarified that crypto exchanges and service providers do not require a money transmission license to operate in the state. The department explained the Money Transmitter law does not apply to crypto trading platforms. According to the act, only fiat currency or the US government-issued currency is considered money. “To date, no jurisdiction in the United States has designated virtual currency as legal tender,” the department said.

The act states crypto exchanges “never directly handle” fiat currency and the transactions are conducted through a bank account, these “are not money transmitters” that require the license, according to the guidance. Other businesses in the sector, such as cryptocurrency kiosk, ATM and vending machine providers are also not money transmitters.
Tags: bitcoin, news