Venable of counsel Jonathan Pompan was quoted in Business Insider on July 11, 2012 on state money transmission regulation and how it affects startups. State money transmission statutes, sometimes called money services business acts, generally regulate and require licensing for persons engaged in money transmission activity unless exempt or they fall outside of the scope of the relevant statute. The state money transmission statutes are not always uniform.
"The money-transmission statutes are worded broadly, and California is no exception," says Jonathan Pompan, a D.C.-based attorney with Venable, who has represented clients potentially affected by the law. "Especially in California, where you have a lot of tech companies and innovation and startups, there's a tension between that and these broadly written statutes."
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