Twitter, or whatever it's called now Social network X has received a new money transmission license in Rhode Island allowing it to offer cryptocurrency payment services.
According to several media outlets, the social media company that Elon Musk wants to transform into the largest financial services institution in the world has received another money transmitter license that allows it to integrate convenient methods for processing peer-to-peer payments and providing financial services to its customers on the platform.
The new money transmitter license X has received was reportedly granted by the state of Rhode Island.
This Rhode Island Money Transmitter License also allows its holders to: Offer services based on cryptocurrencies and digital assets, which is why rumors have emerged again about Elon Musk's plans to integrate crypto assets into the platform.
According to the Rhode Island Department of Business Regulation, a state money transmitter license is required for all businesses that want to offer cryptocurrency money transfer and electronic payment services, such as cryptocurrency wallets, exchanges, and payment methods.
So, with this license, X has the ability to provide its clients with different services related to crypto assets like bitcoin, ranging from storage and custody to transfer and exchange.
On the other hand, the law firm Shipkevich PLLC, focused on business and institutional finance, clarifies that cryptocurrency activity is regulated by money transmitter laws in the state. The term “money transmission” in Rhode Island law includes the activity of maintaining control of virtual currencies or transacting virtual currencies on behalf of others. Also, under state law, where money is not defined, “there is a reasonable presumption that virtual currencies are considered money or are used as a medium of exchange,” the firm says.
Although X has not made any statements on the matter, obtaining this money transmitter license is a significant development in achieving its goal of becoming the largest financial institution globally and, possibly, to offer virtual currency services and enable cryptocurrency transactions.
X received its first licenses as a money transmitter in early July from the states of Michigan, New Hampshire and Missouri.
Two weeks later, Elon Musk announced one of the biggest changes yet to the social media company: the change of its brand and logo to “X.”
The social media company and platform changed its name from “Twitter” to “X” on July 23, in a significant move to transform itself into an entity that can “offer everything,” as its current CEO, Linda Yaccarino, put it.
Continue reading: Twitter transforms and changes its brand and logo to “X”
Main image from CNBC
