According to a Reuters report, the U.S. Conference of State Bank Supervisors (CSBS) has provided a new regulatory procedure that will benefit fintech and cryptocurrency-related firms, and support payment service-based business expansion throughout the United States.
Cryptocurrency-related businesses and payment firms like Western Union and PayPal in the past had to go through a long and cumbersome process to obtain an operating license from the regulatory body of each state before operating their businesses interstate level.
For instance, the allegedly stringent requirements for Bitlicense application in New York is a known barrier to various cryptocurrency-related firms offering services to customers in the region.
However, the new regulatory procedure will henceforth allow over 78 payment firms, including cryptocurrency firms, to pass through one examining body, provided by the collaborative group of state regulators saddled with the responsibility of issuing licenses to payment firms rather than scrutiny by separate states.
The call to improve the stressful regulatory system will benefit the affected U.S. based payment companies, which per the report, records transactions worth over $1 trillion every year (a significant quota contribution to the United States economy).
Based on the new arrangement, while each state will still retain sovereignty to examine by choice if need be, States can share information gathered from the examinations conducted. To that effect, the CEO and President at CSBS, John Ryan, commented during an interview; “The states aren’t giving up authority. They realize efficiencies by sharing information.”
Speaking for the affected payment companies, an associate counsel for Western Union, Rosemary Gallagher, expressed relief, saying, “the new regime would reduce the burden for each state too, allowing them to field their ‘highest quality examiners.’”
Undoubtedly, the recent development is a step in the right direction as United States financial regulators continue to answer calls to provide a more friendly environment for fintech and crypto industry participants.