In a document published today, The Pennsylvania Department of Banking and Securities has set up a guideline for crypto exchanges and ATMs in the financial sphere.
The guideline addresses the application of the Money Transmitter Act (MTA) on virtual currency exchanges.
The document takes into consideration that virtual currency platforms never directly handle fiat currency and in the event of fiat payment or transfer, fiat is handled by a bank account in the platform’s name. Thus, the guideline states that these platforms are not money transmitters.
As per the general understanding of the public, virtual trading platforms act as a mediator between two parties and only oversee the conversion of ownership of digital assets. The same was mentioned in the guideline, fortifying the ruling that platforms are not money transmitters.
The next clarification was for crypto ATM’s. These were also labelled as NOT transmitters as there is no transfer of money to any third-party. The machines just exchange fiat for digital and vice versa.
The document also rules that only fiat currency, or government issued currency is “money” in Pennsylvania. Virtual currency is not considered “money” under the Money Transmitter Act (MTA). The document clarifies that no jurisdiction in the United States has [yet] designated virtual currency as legal tender.
Crypto-favoring bills are now becoming a regular see in jurisdictions. A bill was recently presented in Wyoming that wanted the classification of digital assets within existing laws. Before that a bill allowing tokenization of stocks was presented in Wyoming too.
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