An agency of Pennsylvania published a new guidance that facilities the establishment of cryptocurrencies exchanges making some licenses no longer needed. The Pennsylvania’s Department of Banking and Securities (DoBS) has shared a document debating some aspects of cryptocurrencies. It states that only fiduciary currencies, such as the dollar, can be considered money. Therefore, the agency do not considered cryptocurrencies as money, so exchanges haven’t to require the specific licenses mandatory for financial institutions that carry out financial transactions.
Bank transactions necessarily involves the participation of a third party, the bank. However, transactions in exchanges happens directly between two users, with no need of a third party participation. Therefore, DoBS highlights that isn’t necessary for exchanges to have money trading licenses in the state.
In March 2018, however, a federal agency equated the tokens of ICOs to fiduciary currencies. The Financial Crimes Enforcement Network (FinCEN) asserted in a publication that every exchange that transacts tokens of ICOs, is transacting money. FinCEN has the function of collecting and analyzing data on financial transactions to combat financial crimes.
Regulations adapted to the crypto market
All governments around the world still seeking for the better way to regulate the crypto market. Even Japan, the country with the most advanced regulatory, still adjusting many guidelines to the market needs. Therefore, actions like those of the Pennsylvania government helps to find a fair regulation to the whole crypto market.
The crypto specialized news portal CoinDesk published an article about the Pennsylvania government act at the last January 23.