Cryptocurrency firms and fintech companies in the United States will start to enjoy a less cumbersome registration process with reduced cost, following a new unifying rule.
One Rule, Cheaper Costs
According to Reuters on Tuesday (September 15, 2020), the Conference of State Bank Supervisors (CSBS) announced a new regulatory strategy that sees crypto businesses and payment firms undergo a single exam. This method will prevent businesses from writing several exams across different states in the U.S.
The new simplified regulatory process comes after companies complained about the stress and burden of obtaining a license in over 40 states. Consequently, 48 regulators in states across the U.S. came together to institute a unified money transmitter license that would benefit 78 businesses both in the crypto and fintech industry.
Speaking on the new regulatory process, John Ryan, the president and CEO of CSBS stated that the method adopted by the regulators will still be robust like the former methods, but more efficient. Ryan, however, added that “the states aren’t giving up authority. They’re realizing efficiencies by sharing information.”
Also commenting on the latest development was Kevin Hagler, Commissioner Georgia Department of Banking and Finance who said:
“One company, one exam is a significant and important shift in how state regulators will ensure compliance with consumer protection and safety and soundness standards for the largest payments companies. By working together and relying on the excellent work of fellow state regulators, we will be able to do even more.”
Furthermore, Rosemary Gallagher, Western Union’s associate counsel stated that the simplified process will also benefit different states.
Most critics and crypto businesses have lamented about the patchwork crypto regulatory framework in the U.S., adversely affecting the development of the nascent industry in the country.
Two former U.S. Presidential Candidates, Andrew Yang and Michael Bloomberg during their campaign pledged to provide a robust crypto regulatory policy. Meanwhile, the unified regulatory system by the CSBS signals a move in the right direction, which could ultimately encourage crypto businesses and other companies to thrive in the U.S.
Outside the U.S., a government panel set up in South Africa advocated for strict clear-cut crypto policies in the country. Japan also revised its crypto regulations, which took effect in May 2020. Meanwhile, the Nigerian securities and exchange commission (SEC) recently released its proposed crypto regulatory policy that will promote just market practices.
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