Elon Musk’s Social Media Platform X has successfully obtained approval for a money transmitter license in Virginia, marking a significant milestone as it secures the 17th approval across US states. This development underscores the company’s proactive approach to advancing efforts to introduce innovative payment features to its platform. The approval from Virginia not only expands the company’s regulatory foothold but also positions it as a key player in the evolving landscape of social media integrated with financial services.
Virginia Grants Electronic Money Transfer Capability to Elon Musk’s X
Elon Musk-owned Social Media Platform X now has the authority to facilitate electronic money transfers in Virginia, effective as of Tuesday, according to the Nationwide Multistate Licensing System & Registry, an online database.
Musk, emphasizing the transformative potential, stated that integrating payment services is a crucial step for X, previously known as Twitter, to evolve into an “everything app” offering services beyond social media. This envisioned expansion includes enabling peer-to-peer payments. Despite X steadily securing approvals for state money transmitter licenses, Musk highlighted on Monday that the approval process in New York and California tends to be the lengthiest.
Twitter Initiated Money Transmitter License Applications Before Musk’s Acquisition
Before Elon Musk’s acquisition, Twitter initiated the process of applying for money transmitter licenses, strategically targeting states with more lenient requirements initially. Elon Musk’s company, Social Media Platform X, has secured approval for a money transmitter license in Virginia, marking the 17th U.S. state to grant such approval. As of Tuesday, the granted Virginia license empowers X to facilitate electronic money transfers, as reported by the Nationwide Multistate Licensing System & Registry, an online database.
The approach involved securing approvals in states like Utah, Florida, Arkansas, and Pennsylvania, to tackle larger, more stringent states such as New York and California later, as reported by Reuters.