I found a message from BlockFi in my Inbox, announcing that they have been approved for a Money Transmitter License (MTL) in Washington State.

That's interesting I thought...but what is a money transmitter?

From my research, I learned that money transmitters are entities that transfer funds, or provide payment services.  They can also be referred to as money remitters or money transfer services.  Some examples of these include Barclays, PayPal, Western Union and MoneyCorp.

In addition to the various state requirements across the US, money transmitters must also register with the Financial Crimes Enforcement Network (FinCEN) of the US Department of Treasury.

So how does BlockFi fit into all of this?  

It turns out that the money service business has evolved quickly in the last 10 years as a result of new technology that has been introduced to the industry.  In fact, the emergence of cryptocurrencies has required new laws to address this alternative form of payment.  The increasing sophistication of money laundering methods has also required stricter state legislation, and regulation of money service businesses throughout the country.  Lawmakers in Washington state have determined BlockFi, and other cryptocurrency interest providers, act as money transmitters.

Significance of BlockFi's announcement

BlockFi is now the first, and only crypto interest provider for Washington state's residents.  It's great to see their progress in this area, and it appears BlockFi is a leader in this space.  Hopefully their services will be available across the US within a few years!

Happy HODLing!

Cover art:

Image by Capri23auto from Pixabay