Fragmented or misguided regulation has created an uncertain environment around cross-border payments, holding back innovation and encouraging banks to de-risk, industry insiders have said.
Jonathan Lear, the president of international payments network Earthport’s North American operations, told an industry conference in Las Vegas it is “bizarre” the U.S. still has a state-by-state legal framework for fund transfer businesses.
The result, he said, is a widespread lack of understanding of how those firms typically operate and, by extension, the level of risk they represent.
“We met with regulators on the east coast, and they have one view of the world; go to the west coast and it’s completely different,” Lear said at last week’s Money20/20 event.
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