BlockFi to Offer First Interest-Bearing Crypto Accounts in Washington State

Cryptocurrency lending firm BlockFi announced in an email that it obtained a money transmitter license (MTL) in the state of Washington in the United States.

The firm explained that the license will allow BlockFi to be the first crypto company eligible to offer interest-bearing crypto accounts to Washington state residents. Furthermore, Washington residents will also have access to the firm’s trading service. The trading platform was announced by the firm last week. At the time the firm also noted that it was pursuing licenses to offer the service as broadly as possible:

“As part of the preparation for the trading launch, BlockFi completed MSB registration with FinCen and has expanded their state licensing strategy to include money transmitter licenses in addition to its existing state lending licenses.”

A focus on compliance

Until now, BlockFi was only authorized to serve state residents with its crypto-backed loan product due to it previously having a consumer lending license in the state. BlockFi CEO and founder Zac Prince told Cointelegraph that the firm also plans to use its license to prepare the platform to “service residents in the state with a fiat on/off ramp option.” He also pointed out BlockFi’s focus on compliance:

“For us, compliance is a differentiator, and something we pride ourselves on. It generates a degree of trust that’s required to thrive and build a true financial ecosystem for cryptocurrencies. It also provides us with the added advantage to further facilitate and secure institutional capital in the near future, enabling us to continue building new products and servicing clients where others can’t — like Washington. ”

As Cointelegraph reported in May, the state passed a bill that recognizes and protects the legal status of electronic records pertaining to distributed ledgers like blockchains.

Furthermore, reports that circulated in January suggest local officials of Douglas County located in central Washington want to build a blockchain innovation campus.