In a new move encouraging easier and simpler cryptocurrency norms in the USA, bank regulators in 49, US states, Washington, DC, and Puerto Rico now are planning to make new provisions. It plans to construct strategies around compliance for cryptocurrency companies that would make the supervisory guidelines easier to follow and cheaper to cost.
In a conference conducted by State Bank Supervisors (CSBS), the new regulation for Money service businesses or MSB will also introduce the same set of rules and standards across 48 states. CSBS is a coordinating body for State regulators that looks at strategies to advance the system of financial supervision. It ensures safety and consumer protection thereby promoting growth in the economy by fostering innovative and much responsive supervision.
Now Cryptocurrency firms will be able to expand relatively easily across the great nation. The 48 regulators have agreed to a single set of supervisory rules which should lessen the burden of compliance costs. According to the new regime, the money services business will undergo a single exam by a joint group of State regulators. They will overlook the conditions and supervision of licensing and will reduce the rigmarole of individual state exams.
The new set of much smoothened and streamlined mechanisms will apply to 78 payment and cryptocurrency firms. It will make it easier for companies to operate on a coherent basis across many states which hitherto wasn’t possible. State regulators in the past had received several requests and complaints to ease regulations because the mechanism to date has been extremely rigid and burdensome to carry out. In fact, cryptocurrency firms have faced a lot of music affecting its adoption and they have been pretty vocal about their experience.
The new arrangement will ensure that a group of examiners from a selected handful of states will join hands to supervise a business, instead of each individual state. John Ryan, CSBS President, and CEO believe that this novel approach will not make any compromises. It will be the same robust set of regulations and will be even more efficient than before. According to him, the states will be able to share information from the examinations following which every state will reserve the right to launch independent examinations if they wish to.
“The states aren’t giving up authority. They’re realizing efficiencies by sharing information,” he said in an interview.
Rosemary Gallagher, associate counsel for Western Union, also who was a part of the pilot program last year disclosed that the company in the past had faced innumerable individual state examinations. The process of saturating and wanting the system of repetition to be eliminated for ease-of-trade and lesser time and expenses wasted on fulfilling compliance.
From the new mechanism sprucing up, she believes that the new regime will surely reduce the burden of the individual state also. It will now allow them field and send across the highest quality examiners to examine.
She added that the new regime would reduce the burden for each individual state too, allowing them to field their “highest quality examiners.”