California DFPI: Not all bitcoin ATMs are subject to licensure

https://www.mobilepaymentstoday.com/news/california-dfpi-not-all-bitcoin-atms-are-subject-to-licensure/
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California’s Department of Financial Protection and Innovation released a new opinion lettercovering aspects of the Money Transmission Act as it related to bitcoin automated teller machines and kiosks, according to a report in Lexology.

The letter outlines that the sale and purchase of bitcoin through ATMs/kiosks in third-party retail locations are not subject to licensure under the MTA because the sale and purchase of bitcoin from the company’s own inventory through a kiosk does not meet California’s definition of ‘money transmission.’

The transaction would be between the consumer using the ATM/kiosk and the company and the bitcoin which would be provided exclusively from the company’s own inventory would be sent directly to the customer’s virtual currency wallet.

The letter does not relieve the company from any federal or state regulatory obligation.

https://www.mobilepaymentstoday.com/news/california-dfpi-not-all-bitcoin-atms-are-subject-to-licensure/