Pennsylvania’s Department of Banking and Securities (DoBS) has clarified that crypto exchanges and service providers do not require a money transmission license to operate in the state.

The DoBS published the new guidance for the local crypto industry on Wednesday, following a number of enquiries from businesses, it said.

The department explained that as bitcoin and other cryptocurrencies are not “money,” the Money Transmission Business Licensing Law or the Money Transmitter Act of Pennsylvania does not apply to crypto trading platforms.

According to the act, only fiat currency or the U.S. government-issued currency is considered money. “To date, no jurisdiction in the United States has designated virtual currency as legal tender,” the department said.

The act states that parties conducting the business of transmitting money need to be licensed if they transfer fiat currency…