BlockFi Awarded Money Transmitter License in Washington; Users Can Now Earn Crypto As Interest

The crypto platform BlockFi has obtained a Money Transmitter License (MTL), allowing it to conduct its services in Washington State.

The New York-based company will now offer a product suite to WA clients. The suite, which comprises the BlockFi Interest Account, provides a major milestone in the life of the company. BlockFi will be the first company in Washington to supply crypto accounts that earn interest to their clients.

High Standards for Crypto Operations

Giving the license to BlockFi is equally significant, given the strict requirements in the Washington State, according to the Senate Bill 5031. Based on the strict standards, Coinbase is the only major crypto exchange platform in North America to acquire the license.

Other companies in the crypto space have found Washington State too regulated for their survival. In 2017, San Francisco-based exchange Kraken left the state claiming loss of revenue and high operation costs as major reasons for pulling out. Another mainstream exchange Shapeshift also left Washington State in the same year, citing “unethical, wasteful, and reckless” regulations.

David Spack is the chief compliance officer at BlockFi. Commenting about the new development, he noted that it was a “months-long process.” which included large-scale audits for anti-money laundering compliance. BlockFi also had to ensure they had surety bonds to cover any possible mistakes made by them.

“It is a very intense and rigorous process,” Spack said, adding that the successful granting of the license was a proof to the groundwork they did on the front-end.

With the license in hand, BlockFi will now be able to offer a complete host of products and services in Washington State. According to the firm’s CCO, they are looking to the near future for more acceptance from other states in the US.

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Silvia A
Silvia A
Though relatively new to the cryptocurrency and blockchain space, Silvia has a strong interest in the field and a love of writing as well. She brings an interesting take to current happenings in the industry and enjoys introducing the latest developments to cryptocurrency and blockchain enthusiasts alike. She’s excited to promote a vibrant and fresh discussion as the industry continues to develop and move forward.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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