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Why aren't they a bank? Because they claim they aren't?
by s73v3r 11y ago
Why aren't they a bank? Because they claim they aren't?
- dangrossman 11y agoBecause federal regulators said so over 10 years ago. They don't accept deposits as defined by FDIC, engage in fractional reserve banking, or otherwise meet the definitions of a bank in the US. They're more like an escrow service, holding funds on your behalf in accounts at actual banks. They are a money transmitting entity, which means obtaining 54 state/territory licenses to operate in the entire US, and they hold all of those.