Elon Musk’s X Platform Secures Payments Licenses in Seven US States
Elon Musk’s X platform, previously known as Twitter, has recently acquired payment licenses in multiple states across the United States. One of the most recent licenses X obtained is the currency transmitter license in Rhode Island. This development is a significant step towards X’s goal of supporting both cryptocurrency and fiat currency transactions on its platform.
The social media giant X, owned by Elon Musk, has been granted payment licenses by various American states. One such state is Rhode Island, where X secured a currency transmitter license earlier this week.
Although Elon Musk has hinted at X’s support for cryptocurrencies, it remains unclear whether these licenses specifically allow for crypto payments. However, X’s obtained licenses do enable the platform to offer a broader range of payment services.
X’s Plans for Payments Processing
X has obtained money transmitter licenses in several states, including Arizona, Maryland, Georgia, Michigan, Missouri, and New Hampshire. This indicates Elon Musk’s ambition to establish nationwide payment processing capabilities similar to platforms like Venmo and PayPal, the latter of which he co-founded.
Elon Musk envisions X evolving from a social media platform into an “everything app,” expanding its reach beyond traditional social media posts.
The most recent payment processing license obtained by X was from Rhode Island. According to the Department of Business Regulation (DBR) of Rhode Island, businesses requiring clearance for transmitting money, including wire transfers and electronic transfers like PayPal, must obtain a currency transmission license.
This currency transmission license is also essential for businesses involved in cryptocurrency exchange and custody services. Fintech companies are only exempt from this requirement in rare cases where they are registered as true agents of the licensed currency transmitter in Rhode Island, and money transmission is not their principal profit-making activity.
In New Hampshire, “money transmission” refers to engaging in the business of selling or issuing payment instruments or stored value, or receiving currency or monetary value for transmission to another location. The state’s laws also state that any administrator or exchanger who accepts and transmits convertible virtual currency or buys or sells it for any reason is considered a money transmitter under federal regulations.