The Conference of State Bank Supervisors, representing regulators from all U.S. states and territories, has launched a brand new regulatory framework for funds and cryptocurrency firms.
One Set of Rules for All US States
Regulators in 49 U.S. states have agreed to a single set of supervisory guidelines for cash providers companies, together with cryptocurrency service suppliers. State regulators supervise 79% of all U.S. banks.
The new regulatory regime for cash providers companies launched by the Conference of State Bank Supervisors (CSBS) on Tuesday will assist firms broaden throughout U.S. states and decrease the compliance prices for regulators. The CSBS is the nationwide group of financial institution regulators from all 50 states, American Samoa, the District of Columbia, Guam, Puerto Rico, and U.S. Virgin Islands. The group additionally operates the Nationwide Multistate Licensing System on behalf of state regulators.
A spokesperson for the CSBS advised information.Bitcoin.com on Wednesday:
All states that regulate cash transmitters are concerned: all states besides Montana. DC and Puerto Rico are additionally signed on.
The new system goals to “ensure compliance with regulations on anti-money laundering, cybersecurity, financial condition and other areas,” the spokesperson added, noting that “Companies have to be licensed in 40+ states to be included.”
Tuesday’s announcement particulars that the “MSB Networked Supervision” initiative, as the brand new system known as, “will apply to 78 of the nation’s largest payments and cryptocurrency companies that combined move more than $1 trillion a year in customer funds.”
Under the brand new framework, nationwide funds corporations — together with Western Union and Paypal — will endure a single complete examination by a joint group of state regulators to fulfill all state regulatory necessities, as an alternative of getting to go dozens of particular person state exams.
“The single exam will be led by one state overseeing a group of examiners sourced from across the country,” the announcement continues. “By relying on experts across the state system — including in cyber security and anti-money laundering — regulators will gain more insight while also freeing up state resources.”
“The next stage will be equally important as we raise the bar for multistate exam coordination,” stated Money Transmitter Regulators Association Board president Rick St. Onge. “For over a century, state regulators have responded to evolutions within the money transmission industry, and networked supervision is the logical next step to more effectively and more efficiently supervise the growing number of nationally operating companies.”
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