- X Payments debuts without crypto, only securing a Money Transmitter License in Louisiana.
- Major firms like PayPal and Coinbase comply with Virtual Currency License requirements, unlike X Payments.
- New York’s strict crypto license rules impact X Payments’ strategy, reflecting Musk’s regulatory concerns.
In the development of the digital payment industry, X Payments, a new venture by the social media platform X (formerly Twitter), is set to make its debut without cryptocurrency integration. Acquired and rebranded by billionaire entrepreneur Elon Musk, X Payments recently received a key Check Sales and Money Transmitters license in Louisiana.
However, the company’s absence of a Virtual Currency Business License, crucial for crypto asset transactions, signals a delay. This indicates that digital currencies like Dogecoin and others may not be embraced at its inception.
Notably, Louisiana and states like New York require firms engaging in crypto-related activities to obtain a specific Virtual Currency Business License. This requirement has been met by major players such as Robinhood, PayPal, Coinbase, and eToro.
Essential for operations involving virtual assets, this license has not been sought by X Payments, as indicated by the sole issuance of the Money Transmitter License. Consequently, the lack of application for the necessary virtual currency permissions underscores a decision to exclude cryptocurrency payments from its platform initially.
Further insight into the company’s regulatory strategy emerges from the situation in New York, a state known for its stringent licensing requirements for virtual currency businesses. According to a report from BitcoinSistemi, the New York State Department of Financial Services confirmed that X Payments has not applied for a virtual currency license.
This move aligns with Musk’s previous comments on the challenges of obtaining approval in states like New York and California. Although X Payments has reportedly sought Money Transmitter Licenses in these jurisdictions, the omission of virtual currency licenses suggests a cautious approach to integrating cryptocurrencies.
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