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For those not familiar with us laws regarding money transmission licenses, they aren’t that hard to get in most states but the problem is that you have to get a

For those not familiar with us laws regarding money transmission licenses, they aren’t that hard to get in most states but the problem is that you have to get a license for every state you operate in- for an online business that’s 50 licenses. And there are capital requirements for each individual license, effective locking out web startups below a certain amount of capital. It’s part of why financial innovation in the us started with blockchains (which as protocols cannot comply) rather than tradfi like PayPal.

joshstrange 3y ago
Yep, I looked into this ~5 years or so ago for a side project and the money transmission licenses made the idea dead on arrival without outside funding which I really didn't want to do. Bootstrapping MTLs is pretty much unobtainable for most people. (This project had nothing to do with crypto at all, it was tool to help manage and pay off debt).