The US regulators are planning to create a simplified regulation process for crypto companies and payment services companies as we are about to read more in the cryptocurrency news today.
The US-based money service businesses such as cryptocurrency companies will be able to enjoy a simplified regulation process according to the Conference of State Bank Supervisors that plan to unveil a new joint group of state regulators which will oversee the licensing.
According to reports, CSBS will launch the new plans today after the 48 state regulators agreed to introduce a single set of supervisory rules. The payment services and crypto companies had to comply with hundreds of individual state regulations but now the simplified format will apply to about 80 such firms. A CSBS spokesman said that they will move over $1 trillion per year combined and the implementation of the group of regulators will facilitate operations across many states.
CSBS’s CEO and President John Ryan believe that the new initiative will provide even more opportunities for businesses that operate in the US to enhance their services. At the same time, it will work safely as the old regime. He added that the states are not giving up on their authority as they are realizing how to be more efficient by sharing information. However, Ryan explained that the states will have to share information from the exams and each state will reserve the right to launch independent reaction if regulators deem necessary. The new approach came after the hundreds of complaints filed by crypto and fintech companies that were trying to solve the issue of having a state-by-state supervisory system which only brought delays for licensing.
CSBS started testing more approaches to establish what will work best so the regime described promises strong results from the start which is how the pilot program was created last year. Rosemary Gallagher, the counsel for one of the companies that were affected by the new regulatory regime, Western Union, took part in the pilot. She said that her company had to comply with “dozens of individual state exams” and Western Union wanted to have a fester process. Also, she noted that the latest approach will reduce the burden for each state dramatically.
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