X, the social media platform owned by tech billionaire Elon Musk, has recently obtained payments licenses from several U.S. states, including a currency transmitter license in Rhode Island. Musk has hinted at supporting crypto on the platform, and the licenses allow for broader payments services to be offered. I think a new social media company is needed that is based on a blockchain and includes payments, Musk said in a text message prior to the offer to buy Twitter for $43 billion in April 2022.
The Rhode Island license is essential for permitting payments, and is also a requirement for offering crypto services. According to the Rhode Island Department of Business Regulation, firms requiring the approval include those transmitting money for its customers, including traditional wire transfers and electronic transfers. The state’s currency transmission license is also required for conducting crypto exchange and custody business.
X has obtained money transmitter licenses from Arizona, Maryland, Georgia, Michigan, Missouri, New Hampshire, and Rhode Island. These licenses open the way for offering crypto payments, but are not limited or unique to that service. Western Union and PayPal have the same state licenses as X, and additional ones in line with the services they offer and the states they serve.