Which major tech companies hold MSB licenses, and what do they use them for?
Money Transmitter License
Asked by Question Bot09/Dec/20141 answer
1 Answer
F
Faisal Khan
Answered 09/Dec/2014
To get a rough semblance of who the big players are with Money Transmitter Licenses, look towards California and New York (2 of the most coveted licenses in US):
To answer your second part, you are asking if they have a right to transfer funds within their products, the short and the long answer is Yes.
As long as the product was designed to behave that way, intra-wallet or intra-bank transfers (within their product/services) is allowed. Commingling of funds is also allowed. However, what is not allowed is to use the funds in any manner, other than their intended purpose. You cannot reposition or reallocate the funds to some other account or products, etc.
The whole idea behind these coveted money transmitter license is that you can run a wide-variety of services, including e-money, or wallet holding.
It is also important to note, some big corporations may be using the license exemption given to federally chartered nationwide banks, so they do not necessarily need a license.
To answer your second part, you are asking if they have a right to transfer funds within their products, the short and the long answer is Yes.
As long as the product was designed to behave that way, intra-wallet or intra-bank transfers (within their product/services) is allowed. Commingling of funds is also allowed. However, what is not allowed is to use the funds in any manner, other than their intended purpose. You cannot reposition or reallocate the funds to some other account or products, etc.
The whole idea behind these coveted money transmitter license is that you can run a wide-variety of services, including e-money, or wallet holding.
It is also important to note, some big corporations may be using the license exemption given to federally chartered nationwide banks, so they do not necessarily need a license.