Pennsylvania clarifies that crypto are not money
The Department of Banking and Securities of Pennsylvania expressed that bitcoin and other digital currencies are not considered as money
The Pennsylvania Department of Banking and Securities published a guide for digital currency businesses that operate in the state. The financial entity decided that a money transfer license is not required for operations related to cryptocurrencies.
In this way, the new “Guide to the Law of Money Transmitter for Virtual Currency Business for the local cryptographic industry” was made public. The agency also said that cryptocurrencies are not considered money and therefore business operators are not required to apply for a money transfer license.
As stipulated in the legal regulations, only the fiduciary money or the currency issued by the United States government is considered money. “To date, no jurisdiction in the United States has designated a virtual currency as legal tender,” the department said.
According to the guide, the operations of digital currencies are never carried out directly so the fiduciary currency and the transactions that are executed are made through a bank account. These are not exchanges of money and therefore these are not conditioned to own the license.
To conclude, the Pennsylvania Department of Banking and Securities expresses that clarification was necessary to answer the persistent questions of the interested and involved parties in the cryptographic ecosystem.
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