U.S. State Bank Regulators to settle on Single Set of Rules for Fintech, Crypto Firm Licensing
Tyler Smith – Crypto Investor
Regulators in 49 U.S. states, Washington, D.C., and Puerto Rico, aim to improve enforcement for cryptocurrency firms by consolidating supervisory examinations, as reported by Coindesk.
Reuters has been confirmed by the Conference of State Bank Supervisors (CSBS), a coordinating body of state regulators, to create the same rules and standards for Money service businesses (MSB) in 48 states.
Instead of regulating each individual, it will make compliance easier for State-licensed money transmitters such as Western Union, PayPal, and cryptocurrency companies where consumers buy and sell Bitcoin and sell and buy altcoins. After 48 state regulators have agreed to a set of single supervisory rules to cut compliance costs, it will become easier for them to expand throughout the United States and the world.
“The new approach is just as robust but more efficient," said John Ryan, President, and CEO of the Conference of State Bank Supervisors (CSBS). States will be able to share information from examinations and, if they wish, each State reserves the right to initiate independent exams.
One State will lead a group of 49 regulatory bodies to assess each entity. The new simplified framework applies to 78 large payment companies and crypto-monetary companies, which combined move over $1 trillion a year. The CSBS told Reuters it is intended to simplify the operation of companies in multiple states.
In recent years, state regulators have worked together to counter businesses' concerns that the State-by-State supervisory system is outdated and unnecessarily burdensome. Cryptocurrency and fintech companies, which generally must be state-licensed, have been especially vocal about the issue. On Tuesday, the Conference of Supervisors of State Banks (CSBS) will present a new regulatory regime for money service businesses that will undergo a single examination, instead of dozens of individual State examinations by a collaborative group of state regulator licensing.