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.
🙌BlockFi is excited to announce that we are the first crypto finance platform to receive an MTL License in Washington. BlockFi Interest Accounts and Trading are now available to residents of Washington State. Start earning now 👇 https://t.co/Qnv23sB9G5 pic.twitter.com/8DiAqNWqr3
— BlockFi (@TheRealBlockFi) December 10, 2019
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.