The Department of Banking and Securities (DoBS) of Pennsylvania regulated that exchanges and service providers dealing with cryptocurrencies do not need a money transmission license for doing business within the state.
The department published guidance for local cryptocurrency companies as a response to “multiple inquiries from entities engaged in various forms of virtual currency exchanges.”
According to the DoBS, Bitcoin and other cryptos are not considered as money, so the laws on the Money Transmission Business Licensing Law or the Money Transmitter Act of Pennsylvania cannot be applied. Guided by the laws only fiat currencies can be described as money.
As the authority explained in the guidelines, the companies that make remittances and charge fees for related services should receive a license. Crypto exchanges, on the other hand, never directly work with fiats, performing transactions via bank accounts, so they do not have to be licensed.
Moreover, the laws cannot be applied to cryptocurrency terminals owners.
"In both the one-way and two-way Kiosk systems, there is no transfer of money to any third party. The user of the Kiosk merely exchanges fiat currency for virtual currency and vice versa, and there is no money transmission," the guidance reads.
Nevertheless, companies working with ICO tokens at the federal level may face other regulations. In spring last year, the Financial Crimes Enforcement Network (FinCEN) decreed that exchanges that sell coins, ICO, or exchanging them for other digital currencies, fiats or other valuables or currency substitutes, are money transmitters.