X (Twitter) obtains license to trade crypto in Rhode Island
Twitter has secured a currency transmitter license from Rhode Island, marking a significant step towards the platform’s potential involvement in the financial sector.
On Aug. 29, Twitter obtained a currency transmitter license from Rhode Island. The platform is now authorized to handle both fiat and digital currencies, underlining the company’s approach toward compliance and regulation.
This news follows Twitter’s acquisition of similar licenses in Michigan, Missouri, and New Hampshire.
The Rhode Island currency transmitter license is legally mandated for any entity that carries out financial transactions on behalf of users. It covers the storing, trading, and transferring assets, including traditional fiat money and digital currencies like Bitcoin (BTC) and Ethereum(ETH).
The license was granted just one day after Twitter’s legal victory over the U.S. Securities and Exchange Commission, showing the speed at which the company strides in this new direction.
Elon Musk, the owner of Twitter, reportedly has broader aspirations for the platform, envisioning it as an “everything app” with functionalities for various financial transactions. While no official announcements have been made regarding the specific services Twitter plans to offer, it’s worth noting that insiders suggest the initial rollout will focus on fiat currency transactions.
The system, however, is being built to support digital currencies in the future. This is consistent with Musk’s long-standing interest in cryptocurrencies, dating back to his endorsements of Bitcoin and Dogecoin(DOGE) in 2021.
Twitter’s existing user base, which exceeds 400 million, makes this license impactful. With the license, Twitter has the capability to extend financial services to a significant population, which could encourage wider adoption of cryptocurrencies.
The timing is crucial, given the evolving attitudes of governments around the world towards digital currencies. Regulatory stances are varied. Some countries are embracing cryptocurrencies, and others are proceeding with caution. Therefore, Twitter’s entry into this space has the potential to influence both public opinion and regulatory decisions on a global scale.
Prior to these developments, Twitter had dabbled in financial services through the integration of Non-Fungible Tokens (NFTs). Users could display NFTs as profile pictures via the Twitter Blue subscription model. However, acquiring a currency transmitter license marks a departure from a focus solely on digital collectibles to a broader financial ecosystem that could include a variety of asset classes.
