In line with a recent ‘document‘ published by DOBS [Department of Banking and Securities], Pennsylvania has declared that crypto exchanges don’t fall subject to the MTA [Money Transmitter Act].
The document published defines crypto exchanges therefore don’t need a license to provide their services to Pennsylvania residents. The MTA — otherwise named as the Money Transmission Business Licensing Law — provides that “no person shall engage within the business of transacting money by means of a transmitting instrument for a fee or other considerations with or on behalf of a person without 1st having obtaining a license from the DoBS.”
While the definition of a “person” pertains to both people and organizations, the DoBs under-scores that the transmission of cash under the MTA essentially involves the transfer of standard currency “with or on behalf of a person to a 3rd party” — a service for that the transmitter charges a fee.
As per the document, digital currencies like Bitcoin [BTC] don’t seem to be deemed to be ‘money’ according to MTA – that is outlined as being “currency or monetary tender or any other product that’s typically recognized as a medium of exchange.”
In line with DoBs, no U.S. jurisdiction has recognized cryptocurrencies as a legal tender, till this time. Pennsylvania especially restricts the definition of cash to “a medium of exchange presently licensed or adopted by a domestic or foreign government.”
The document conjointly clarifies that in relevance to crypto kiosks, ATMs and vending machines — despite whether or not they modify one or two-way deposits and exchange of crypto and fiat — no cash transmission is deemed to be involved, as there’s no transfer of cash to a 3rd party.
As reported earlier this month, a ‘bill‘ that exempts corporations providing non-custodial crypto services from certain state cash transmission laws was recently re-submitted to the U.S. Congress.
Even earlier in March of last year, the state of Wyoming preempted any prospective national level amendments by passing its own ‘bill‘ to exempt a specific blockchain-based tokens from certain securities and cash transmission laws.