The Conference of State Bank Supervisors, representing regulators from all U.S. states and territories, has launched a new regulatory framework for payments and cryptocurrency companies.
One set of rules for all American states
Regulators in 49 U.S. states have agreed to a single set of supervisory rules for money services businesses, including cryptocurrency service providers. State regulators oversee 79% of all U.S. banks.
The new regulatory regime for money services businesses launched by the Conference of State Bank Supervisors (CSBS) on Tuesday will help businesses grow in U.S. states and lower compliance costs for regulators. CSBS is the national organization of banking regulators for the 50 states, American Samoa, the District of Columbia, Guam, Puerto Rico, and the United States Virgin Islands. The organization also manages the national multi-state licensing system on behalf of state regulators.
A CSBS spokesperson told news.Bitcoin.com on Wednesday:
All states that regulate money issuers are affected: all states except Montana. DC and Puerto Rico are also signed.
The new system aims to “ensure compliance with regulations on anti-money laundering, cybersecurity, financial standing and other areas,” the spokesperson added, noting that “companies must be licensed in over 40 states to be included. ”
Tuesday’s announcement details that the “MSB Networked Supervision” initiative, as the new system calls it, “will apply to 78 of the country’s largest payments and cryptocurrency companies who together are moving more than $ 1 trillion per year in customer funds. “
Under the new framework, domestic payment companies – including Western Union and Paypal – will undergo a single comprehensive review by a joint group of state regulators to meet all state regulatory requirements, instead of having to pass dozens of individual exams.
“The single exam will be led by a state supervising a group of examiners from across the country,” the announcement continues. “By drawing on experts from across the state system – including cybersecurity and anti-money laundering – regulators will gain insight while freeing up public resources.
“The next step will be just as important as we raise the bar for the coordination of multi-state reviews,” said Money Transmitter Regulators Association board chair Rick St. Onge. “For more than a century, state regulators have responded to changes in the money transmission industry, and network supervision is the logical next step to more effectively and efficiently oversee the growing number of companies operating at the level. national.
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