Bank regulators in 48 states in the US have agreed on a set of fintech and crypto firm licensing rules. The Conference of State Bank Supervisors (CSBS) said it would unveil the new regulatory framework for money services businesses (MSBs) on Tuesday.
According to a Reuters report, money transmitters like Paypal and Western Union will benefit from the newly agreed single set of supervisory rules. The 48 states will release a consolidated regulatory standard that should reduce their compliance cost. Upon unveiling the new regulatory framework, money transmitters and crypto firms will expand across the US and be available to more Americans.
Before now, each state had its supervisory system, which stirred complaints from different companies, especially crypto and fintech firms. In response, state regulators have been working together over the past few years to address the complaints.
Now, examiners will be chosen across the 48 states to form a body, and will jointly supervise a business.
Commenting on the new move, CSBS president and CEO John Ryan said it would be more efficient. He added:
“The states aren’t giving up authority. They’re realizing efficiencies by sharing information.”
Furthermore, an associate counsel for Western Union, Rosemary Gallagher, also talked about the consolidated regulation. She said that the company participated in several states exams in the past, and they hope that the exam repetition will reduce.
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