Pennsylvania exempts cryptocurrency exchanges from Money Transmitter Act
|- The state ruled that cryptocurrency exchanges are not money transmitters under the law.
- Crypto trading platforms can operate in Pennsylvania without a license.
According to the recent document published today, Pennsylvania does not consider cryptocurrency exchanges as companies subject to the Money Transmitter Act (MTA).
Consequently, the trading platforms for digital assets do not have to obtain a license to provide their services to Pennsylvania residents.
According to the MTA, also known as the Money Transmission Business Licensing Law:
“[n]o person shall engage in the business of transmitting money by means of a transmittal instrument for a fee or other consideration with or on behalf of an individual without first having obtained a license from the [DoBS].”
However, the legislation does not clarify in “person” applies to individuals or both to individuals and companies. Moreover, the legislators concluded that the transmission of money under the MTA involved fiat currency and performed “with or on behalf of an individual to a 3rd party”.
Moreover, Bitcoin does not fall under the definition of money provided in MIT.
The law does not cover crypto kiosks, ATMs and vending machines as they do not involve a transfer of money to a third party which is regarded as a characteristic feature on the money transfer.
The US states may be pivoting towards a soft stance on cryptocurrencies and blockchain. Earlier this week we reported that Wyoming proposed a law that might legalize cryptocurrencies as a means of payment.
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