Several states in the USA pushing fintech startups to acquire licenses
At least seven states in the USA are working together to have fintech startup companies easily obtain licenses so they can legally operate nationwide. This is due to complaints that operating a fintech business in the country is expensive and license applications are often burdensome for startups, a report on February 6 stated.
USA urging fintech startups to apply for licenses
Reports said the state of Washington, Tennessee, Illinois, Georgia, Texas, Massachusetts, and Kansas will assess fintech startup license applicants by determining individual state findings. Fintechs, especially those that provide money and bitcoin transfer services, should be assessed if they are fit to operate in the country. The Department of Treasury's Financial Crimes Enforcement Network (FinCEN) strictly mandates Money Service Business license applications. Money transfer startups are usually required to apply for an additional business license if they are planning to operate nationwide.
Conference of State Bank Supervisors’ president, John Ryan stated that other states will find it easy to use the license agreement. Aside from this, the Office of the Comptroller of the Currency is also assisting MSB license applicants. State regulators recently disproved a special bill so that money transfer businesses more easily can have nationwide operations.
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