The state of Pennsylvania doesn’t consider cryptocurrency as money and not a tenable substance for a transaction. This is contained in the recent report by the Pennsylvania Department of Banking and Securities (DoBS) released on Wednesday while clarifying the issue of money transmission services and cryptocurrency.
Cryptocurrency Not A Legal Tender For Transactions
According to the report, cryptocurrency is not a legal tender for a transaction. This definition of cryptocurrency is entailed in the clarification of money transmission act MTA and cryptocurrency in the state. The report states that the definition of money according to MTA is a currency and legal tender or any other product that is generally recognised as a medium of exchange.
Also, the state defines fiat as lawful money of the United States of America and a medium of exchange that is currently authorised or adopted by a domestic or foreign government. Based on this definition, DoBs of the state stated that fiat currency is the only currency that serves as legal tender in the country as digital currency is not declared a legal tender yet.
In contrast to the recent stance of the state of Pennsylvania, the state of Wyoming recently introduced two new bills in the state which gives cryptocurrencies the same status as money in the state. The bill classified cryptocurrencies into three categories which are digital assets, digital securities, and virtual currencies.
Cryptocurrency Exchange And ATM Not Considered as Money Transmission Service
The department of banking and digital service of the state also stated in the report that cryptocurrency exchange and ATM is not considered as money transmission service. The decision was reached by the agency due to the popular demand by businesses to clarify its stance on crypto related businesses as stated in the report.
The report gives necessary information guiding the application of the Money Transmission Act (MTA) or Money Transmission Business Licensing Law of Pennsylvania, especially in relation to cryptocurrency. The law guides firms that are involved in transmitting money on behalf of an individual to the third party and also charge a fee for it.
It was noted in the report that the cryptocurrency exchange does not come under the law because they are not a transmitter. It stated that a crypto exchange does not transfer money from a user to another user or a third party. Also, the platform is not engaged in the business of providing payment services or money transfer services.
The same law was also noted to be applicable to Crypto ATMs, kiosks, and vending machines as they are not involved in transmitting money.