Florida Office of Financial Regulation Declaratory Statement for IntXPay, Inc.

Index: OFR 2026 - 287
STATE OF FLORIDA
OFFICE OF FINANCIAL REGULATION
In Re:
INTXPAY, INC., Case Number: 136726
Petitioner.
FINAL ORDER ON PETITION FOR DECLARATORY STATEMENT THIS CAUSE came on for consideration upon the Petition for Declaratory Statement ("Petition") filed by INTXPAY, INC. ("Petitioner") and received by the Office of Financial Regulation ("Office") on March I 0, 2026. Having considered the Petition and relevant statutes and rules, the Office issues this Declaratory Statement. FINDINGS OF FACT

1. The Petition, attached hereto as Exhibit A, requests the Office issue a Declaratory
   Statement addressing whether funds and assets received, held or transmitted in accordance with the described business model must be included in the aggregate face amount of all outstanding money transmissions for purposes of calculating the amount of permissible investments which must be held by Petitioner pursuant to section 560.210, Florida Statutes.
2. Petitioner is a Florida licensed Money Services Business, having been issued
   Money Transmitter Part II license FT230000552.
3. The Office considered all the information Petitioner provided and, pursuant to Rule
   28-105.003, Florida Administrative Code, has taken such information as fact for the purpose of this Order. The facts set forth in the Petition are hereby adopted and incorporated herein by reference as the findings of fact of the Office.
4. Pursuant to, and in compliance with, section 120.565(3), Florida Statutes, the

Office published notice of the Petition. The notice appeared in the Florida Administrative Register at Volume 52, Number 50, published March 13, 2026. The Office received no comments regarding the matter.
5. The Office's conclusions are based upon the assertions of fact contained in the
Petition. Any modification of the assertions of fact could alter the Office's conclusions. None of Petitioner's assertions of fact are admitted by the Office as being true, and Petitioner's questions are viewed as purely hypothetical. If any facts asserted by Petitioner are untrue or materially incomplete, the Office's conclusions provided herein would not apply. CONCLUSIONS OFLAW
6. Pursuant to chapters 120 and 560, Florida Statutes, the Office has jurisdiction over
this matter.
7. Pursuant to section 120.565(1), Florida Statutes, any substantially affected person
may seek a declaratory statement regarding an agency's opinion as to the applicability of a statute as it applies to the petitioner's particular set of circumstances.
8. It is well established that the purpose of a declaratory statement is to afford a
petitioner the opportunity to seek an agency's position regarding the applicability of the agency's statutory provisions, orders, or rules to the petitioner's particular circumstances. Adventist Health System/Sunbelt, Inc. v. Agency for Health Care Admin., 955 So.2d 1173, 1176 (Fla. 1st DCA 2007) (citingChilesv. Div. of Elections, 711 So.2d 151, 154(Fla. ptocA 1998)).
9. A declaratory statement can be used to avoid costly administrative litigation by
informing the petitioner in advance as to the agency's views regarding the petitioner's contemplated conduct. Adventist Health, 955 So.2d at 1176; Chiles, 711 So.2d at 154; and Nat l Ass'n of Optometrists & Opticians v. Fla. Dep't of Health, 922 So.2d 1060, 1062 (Fla. 1st DCA 2006). 2

10. Petitioner possesses the requisite interest and is the proper party to request a
    declaratory statement under section 120.565, Florida Statutes, and Rule 28-105 et seq., Florida Administrative Code.
11. Section 560.103(22), Florida Statutes, a "money services business" means any
    person located in or doing business in this state, from this state, or into this state from locations outside this state or country who acts as a payment instrument seller, foreign currency, check casher, or money transmitter.
12. Section 560.103(23), Florida Statutes, defines "money transmitter" as:
    [A] corporation, limited liability company, limited liability partnership, or foreign entity qualified to do business in this state which receives currency, monetary value, or payment instruments for the purpose of transmitting the same by any means, including transmission by wire, facsimile, electronictransfer, courier, the Internet, or through bill paymentservices or other businesses that facilitate such transfer within this country, or to or from this country.
13. Pursuant to section 560.103(36), Florida Statutes, "virtual currency" means a
    medium of exchange in electronic or digital format that is not currency.
14. Section 560.210(1) requires that a licensee must at all times possess permissible
    investments with an aggregate market value of at least the aggregate face amount of all outstanding money transmissions and payment instruments issued or sold by the licensee.
15. Pursuant to section 560.103(27), Florida Statutes, "outstanding money
    transmission" means a money transmission to a designated recipient or a refund to a sender that has not been completed.
16. Pursuant to section 560.210(2), Florida Statutes, virtual currency received and held
    is not included in the amount of outstanding money transmissions for purposes of calculating the amount or value of permissible investments required.
17. Pursuant to section 560.210(1), funds held in the licensee's custody for its
    3

customers should not be included in the calculation of outstanding money transmissions unless or until said funds are transmitted to another location or person.
18. A money transmission, as defined in section 560.103(27), Florida Statutes, is
included in calculating the amount of outstanding money transmissions until the transmission is complete. A money transmission is complete when the funds transmitted are available to the customer. See section 560.208(5), Florida Statutes. Based on the foregoing Findings of Fact and Conclusions of Law, it is hereby DECLARED THAT:
I. The Office has jurisdiction over the subject matter and the parties pursuant to
section 560.105, Florida Statutes;
II. Petitioner is a substantially affected person; and,
ill. INTXPAY, INC.'S petition is GRANTED. Virtual currency, funds available to a
customer upon completion of a money transmission and funds held for a customer but not transmitted are not included in the calculation of outstanding money transmissions. DONE and ORDERED thisJf£! day of June, 2026, in Tallahassee, Leon County, Florida. Commissioner 4

NOTICE OF RIGHTS
A PARTY WHO IS ADVERSELY AFFECTED BY THIS FINAL ORDER IS ENTITLED TO JUDICIAL REVIEW PURSUANT TO SECTION 120.68, FLORIDA STATUTES. REVIEW PROCEEDINGS ARE GOVERNED BY THE FLORIDA RULES OF APPELLATE PROCEDURE. SUCH PROCEEDINGS ARE COMMENCED BY FILING THE ORIGINAL NOTICE OF APPEAL WITH THE AGENCY CLERK FOR THE OFFICE OF FINANCIAL REGULATION AS FOLLOWS:
Bv Mail or E-mail
Office of Financial Regulation
P.O. Box 8050
Tallahassee, FL 32314-8050
Phone: (850) 410-9889
E-mail: Agency.Clerk@flofr.gov
OR Bv Hand Delivery
Office ofFinancial Regulation General
Counsel's Office
The Fletcher Building IO I East Gaines
Street Tallahassee, FL 32399-8050
Phone: (850) 410-9889
A COPY OF THE NOTICE OF APPEAL, ACCOMPANIED BY THE FILING FEES AS REQUIRED BYLAW, MUST ALSO BE FILED WITH THE DISTRICT COURT OF APPEAL, FIRST DISTRICT, 2000 DRAYTON DRIVE, TALLAHASSEE, FLORIDA 32399-0950, OR WITH THE DISTRICT COURT OF APPEAL IN THE APPELLATE DISTRICT WHERE THE PARTY RESIDES. THE NOTICE OF APPEAL MUST BE FILED WITH BOTH THE AGENCY CLERK FOR THE OFFICE OF FINANCIAL REGULATIONS AND THE DISTRICT COURT OF APPEAL WITHIN 30 DAYS OF THE RENDITION OF THE ORDER TO BE REVIEWED. 5

CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the foregoing Final Order and Notice of Rights has been furnished to: Joshua M. Radbod, Esquire, and Allison W. Maffitt, Esquire, Counsel for Petitioner, IntXPay, Inc., by email at jradbod@cogentlaw.com and amaffitt@cogentlaw.com, on this-?/21- day of June, 2026. ulation 14 mai : gency.Clerk@flofr.gov Tel: (850) 410-9889

March 12, 2026
BY ELECTRONIC MAIL
Agency Clerk
Florida Office of Financial Regulation
200 E. Gaines Street
Tallahassee, FL 32399
Re: Petition for Declaratory Statement Before the Florida Office of Financial Regulation-IntXPay, Inc. Exhibit A We represent IntXPay, Inc. (the "Company"), 19790 W Dixie Way, Unit 1007, Miami, Florida 33180, a regulated provider of currency exchange and money transmission services and write to you requesting a clarification of Florida Statute §560.210 via a declaratory statement because the said Section of Florida Statute is applicable to the Company's activities as a money service business and a money transmitter. The Company has just obtained a Money Transmitter License in Florida and would like to make sure they conduct its business in full compliance with the Florida Law. Pursuant to
section 120.565(1 ), Florida Statutes, any substantially affected person may seek a declaratory
statement regarding the interpretation of a statutory provision or agency rule or order, for that person's particular set of circumstances. In its business activity, the Company intends to offer services of purchasing crypto assets for its clients with clients' US Dollars sent to the Company and held at the Company's bank account on segregated subaccounts, as well as exchange clients' crypto assets (e.g., USDC) for US Dollars via a crypto platform Fireblocks Inc. ("Fireblocks") which facilitates connections to crypto exchanges.
I. Issue No. 1.
Based on the state's money services business statute (Fla Stat. §560.210), we understand that the Florida Office of Financial Regulation (the "OFR") does not require to include any crypto assets received from customers for exchange into US Dollars into the aggregate face amount of all outstanding money transmissions for which the licensee must at all times hold an equivalent amount of financial assets in permissible investments ( calculated based on their aggregate market value, in accordance with generally accepted accounting principles). Our research indicates that OFR has historically treated virtual currency as outside the scope of the state's definition of money under its statute. Fla. Stat.§ 560.103(22). Thus, 1

customers' crypto assets received by the Company for exchange to US Dollars shall not be included into the "aggregate amount of all outstanding money transmissions" and at no time will require a reserve in the form of the Company's assets in "permissible investments". In addition and in the alternative, the customer's crypto assets in stablecoins (USDC) which are exchangeable to US Dollars at the rate of 1: 1 are held in the Company's wallet with Fireblocks. According to the Company's agreement with Fireblocks, Fireblocks is obligated to transfer to the Company upon request either USDC held by the Company at its wallet with Fireblocks or the equivalent amount of US Dollars. Thus, the crypto assets held by the Company with Fireblocks could be viewed as receivables that are due to the Company, and therefore permissible investments - licensee from the licensee's authorized vendors because they are not more than 90 days past due and are not of doubtful collection. See Fla. Stat. §560.210(1)(h). To demonstrate our understanding of Fla Stat. §560.2 JO we offer the following example:
Client requests the Company to exchange 500,000 ofUSDC. Client sends 500,000 USDC to the Company's wallet with Fireblocks. Company withdraws 500,000 USDC from its wallet to exchange it for US Dollars. US Dollar funds after exchange are transferred by Fireblocks to the Company's bank account. Once the funds are cleared the Company transfers them to the customer's bank account. No reserves in the form of permissible investments are required for $500,000, correct? Questions:

1. Are we correct in our understanding that in some cases, virtual currency such as
   stablecoins, can be considered permissible investments under Fla Stat. §560.210?
2. Follow up to that, does FL view other virtual currencies, such as BTC and ETH as
   permissible investments?
   II. Issue No. 2.
   We understand that the "outstanding money transmissions" amount referenced in Florida Statute §560.210 does not include the customers' funds in US Dollars held in the licensee's custody for its customers and therefore, does not require any reserves in the form of the Company's assets held in permissible investments. Customers' US Dollar funds located in the Company's accounts for the benefit of its clients are in control of the Company and, until they are ordered to be wired or otherwise transferred to a third party in furtherance of the customer's request, are not deemed to be part of an "outstanding money transmission". To demonstrate our understanding of Fla Stat. §560.210 we offer the following example:
   Customer sends $100 to the Company which it holds in its custody and requests to purchase $40 worth of USDC and send it to the customer's wallet (either non-custodial, or customers wallet held at an exchange, etc., but customer is in control of the wallet where USDC is being sent). Company withdraws $40 from the customer's subaccount and sends it to Fireblocks to purchase 40 USDC for the customer. Once it has 40 USDC in its wallet, the Company sends it to the customer's wallet indicated. 2

Questions:

1. Since this is a two party transaction, which FL does not currently regulate (see FL
   Money Transmission definition §560.103), is it correct that there are no funds that need to be held in custody or permissible investments per Fla Stat. §560.210?
2. Is it correct that there are no additional funds that need to be held by the
   Company, other than the funds from the "outstanding money transmission", which in the example above would be the $40 the Customer designated to the Company, which they converted to USDC, and sent to the client? III Issue No. 3 We understand that the "outstanding money transmissions" amount does not include the customer's funds transmitted to the customer's bank account, accepted by the customer's bank but not yet cleared by it. In other words, the Company's obligation to include the customers' funds wired to the customer's bank account into the "outstanding money transmissions" amount backed up by the equivalent value of the permissible investments start with the moment the customer's funds leave the Company's bank account and terminate at the moment the customers' bank accepts the funds for deposit. The Company reasonably considers that the transmission of wire instructions to its bank to wire funds to the customers' bank marks the moment when the subject amount of customers' funds must be included into the "outstanding money transmission" amount and, the "outstanding money transmission" ends with a customer's bank accepting the funds for deposit and not when the funds get available to the customer. To demonstrate our understanding of Fla Stat. §560.210 we offer the following example:
   Customer sends $10,000 to Company's bank account and requests the Company to purchase 5,000 USDC and transfer to a third party. The Company's bank accepts $10,000 for deposit on Day 1 and clears the fund on Day 2. On Day 3 the Company sends $5,000 to Fireblocks to purchase USDC for the customer according to the customer's instructions. On Day 4 Fireblocks transfers to the Company's wallet 5,000 USDC. On day 5 the Company sends 5,000 USDC to the third party which is transferred immediately. The Company's obligation to backup customer's "outstanding money transmissions" in the amount of $5,000 arises on Day 3 and continues through Day 5. IV Conclusion We have our understanding of the above-discussed issues based on the plain meaning of the text of Florida Statutes, including but not limited to Fla Stat. §560.210 and Fla. Stat. § 560.103(22). We have not seen any guidance or legislation that would change our position. We understand, ho,vever, that the OFR may disagree with our conclusion or require additional information. We would be happy to work with you to answer any questions you may have. Furthermore, please let us know if you disagree with our analysis. If not, we respectfully request a declaratory statement from the OFR stating that ( 1) Florida Office of Financial Regulation (the "OFR") does not require to include any crypto assets received by a money 3

transmitter from the customers for exchange into the US Dollars into the aggregate face amount of all outstanding money transmissions for which the licensee must at all times hold an equivalent amount of financial assets in pem1issible investments (calculated based on their aggregate market value, in accordance with generally accepted accounting principles); that (2) the "outstanding money transmissions" amount referenced in Florida Statute §560.210 does not include the customers' funds in US Dollars held in the licensee's custody for its customers and therefore, does not require any reserves in the form of the Company's assets held in permissible investments; and that (3) the "outstanding money transmissions" amount does not include the customer's funds transmitted to the customer's bank account, accepted by the customer's bank but not yet cleared by it. Thank you for your attention to this matter. Should you require any additional information, please do not hesitate to contact the undersigned. Sincerely, sf Joshua M. Radbod JOSHUA M. RADBOD jradbod@cogentlaw.com 200 I L Street NW Suite 500 Washington, DC 20006 240-446-2925 s/ Allison W. Maffitt ALLISON W. MAFFITT amaffitt@cogentlaw.com 200 I L Street NW Suite 500 Washington, DC 20006 314-683-8668 4