In a landmark decision by Rhode Island regulators, X, formerly known as Twitter, has received a currency transmitter license. This was confirmed by the Nationwide Multistate Licensing System (NMLS) on August 28.
This pivotal move is a significant indicator of the social media giant’s intent to become a formidable player in the financial services sector, focusing particularly on cryptocurrencies.
A Gateway to Crypto Activities
The currency transmitter license is a regulatory green light for X to engage in cryptocurrency-related activities. Indeed, it permits the company to store, transfer, and exchange cryptocurrencies on behalf of its users.
This license is a crucial step, enabling X to offer a full suite of services related to crypto assets. Therefore, it further diversifies X’s portfolio and revenue streams, increasing its presence worldwide.
For those unfamiliar with the term, a currency transmitter license is a mandatory regulatory requirement for any company aiming to handle cryptos or offer related services. Rhode Island law under § 19-14-1(4)(ii) specifies that the license is necessary for “maintaining control of virtual currency or transactions in virtual currency” on behalf of users.
Similarly, businesses that deal with digital “stored value” must also obtain a currency transmission license as per Rhode Island law § 19-14-1(36).
Read more: What To Know About the Decentralized X (Twitter) Alternative
The Rhode Island approval is not an isolated event. X has recently secured money transmitter licenses from New Hampshire, Michigan, and Missouri. These licenses are part of a broader strategy that positions X to venture into payments and financial services.
The approved applications grant X the ability to send, receive, and transfer funds and engage in currency exchange activities.
As the race heats up to dominate social media and financial services, X’s move places it ahead of competitors. It brings it closer to becoming a one-stop shop for users’ online needs.
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