Coin Center, a non-profit cryptocurrency research centre Washington-based, suggestion is to enable fintech and virtual currency startups to obtain a passport to offer cross-state services throughout the nation, without dealing with state-independent regulations on money transmission.
The suggestion came under the influence of the fact that the countrys state-by-state regulations for money transmission licensing is very fragmented, with some states, including North Carolina, New Jersey and California, establishing regulations in favour of digital currency startups and businesses, while others, such as New York and Connecticut, require startups to obtain expensive licenses to operate as legal entities.
The elimination of barriers between states has the potential to open fintech startups to numerous payment and financial systems which they can use to obtain banking services.
OCC, an independent bureau within the Treasury Department, has introduced the concept of open network concluding that it is only logical to offer an open regulatory environment for fintech startups that are focused on bringing innovative and disruptive financial services to the country.
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