California has reformed its controversial Money Transmission Act.
On Friday, the state's governor, Jerry Brown, signed a bill amending the 2010 law. The amendment is intended to ease the regulatory burdens of early stage payments companies, according to Assembly member Roger Dickinson, who sponsored the measure. It requires more transparency from the state in the process of applying for a license, which should help applicants.
"Technological innovation within the money transmission and payments industry has skyrocketed in the last few years, yet California's regulatory framework has lagged behind this innovation," said Dickinson, the state's chair of the Assembly Committee on Banking and Finance, in a press release. "Providing clarity to existing companies and new start-ups on licensing requirements will ensure a vibrant money transmission marketplace that is fair for business while protecting consumers."