X.com, formerly known as Twitter, has been granted the Rhode Island Currency Transmission License. This will allow Elon Musks company to offer a range of cryptocurrency-related services.
X.com Cryptocurrency Services – Approved
The Rhode Island Currency Transmission License is not an easy permit to obtain and represents a significant regulatory step. This license is essential for companies that handle digital assets. We can now say that X.com are able to offer features such as crypto transfers or buying and selling different coins on the platform.
“Businesses that require a RI Currency Transmission license include those transmitting money for its customers, including traditional wire transfers (like Western Union) and electronic transfers (like PayPal). Relatedly, holding funds for customers for purposes of later transmission also requires a license…
R.I. Gen. Laws § 19-14-1(4) sets forth the several categories of business activities that fall into
the definition of “currency transmission.” Specific to “virtual currency,” § 19-14-1(4)(ii)
provides licensure is required for “maintaining control of virtual currency or transactions in
virtual currency” “on behalf of others.” – RHODE ISLAND CURRENCY TRANSMISSION LAW
FREQUENTLY ASKED QUESTIONS (FAQ)
You can find the license approval on the NMLS website here.
More Than “Just” Social Media
The acquisition of this license stating X.com’s ambition to be more than “just” a social media platform. Last few years, there have been significant efforts to integrate payment solutions into the social media platforms. The Rhode Island money transfer license appears to be part of this broader strategy, which now includes an even greater focus on cryptocurrencies.
The PayPal Connection
Rumors have been swirling that X.com could become a digital payments giant similar to PayPal. This speculation because of Elon Musk’s involvement in both companies; Musk was a co-founder of PayPal. Given PayPal’s monumental success in the digital payments space, if X.com is indeed looking to move in that direction, it has a high standard to meet, but a proven model to follow.
Within moments of the news breaking about X.com’s acquisition of the Rhode Island Currency Transmission License, Crypto Twitter turned into a bullish mood. The price of Bitcoin experienced a significant surge, jumping 5% within hours of the announcement.
It’s hard to discuss X.com’s move into cryptocurrency without mentioning Elon Musk, whose tweets alone can send crypto prices to the moon. Musk has been a supporter of cryptocurrencies, particularly bitcoin (BTC) and dogecoin (DOGE) in the past. If Musk brings even a small part of this enthusiasm to X.com’s cryptocurrency services, we can expect significant adoption and integration on the platform.
The Road Ahead
With its new license, X.com is well positioned to tap into communities like Dogecoin or Bitcoin. As cryptocurrencies increasingly move from the fringes to the mainstream of financial transactions, X.com is poised not only to observe this trend, but to actively participate and perhaps even lead it.