Money services businesses that operate across U.S. state lines will have access to a more streamlined approval process, according to a Tuesday statement by the Conference of State Bank Supervisors (CSBS).
Some forty-eight states are participating in the initiative, as reported by Reuters. Described as “a single comprehensive exam to satisfy all state regulatory requirements,” the initiative, known as MSB Networked Supervision, 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.”
“Building on years of multistate coordination, this exam protocol will enable states to fine tune a risk-based approach to each company’s operations. When compliance issues arise, the states will be better positioned to follow up throughout the year,” the organization said in a statement.
According to the group:
“The single exam will be led by one state overseeing a group of examiners sourced from across the country. 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 CSBS’s interest in crypto-focused business dates back as far as 2014, when the organization released a draft legislative framework for states to put rules in place for such firms. A full framework was published the following year, with additional work done in the years since.
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