Published via G: 2013-12-11 23:46:44
A little more state-specific financial regulatory hot water for Square, the hot mobile commerce startup: it has been fined $507,000 by Florida’s Office of Financial Regulation for operating a payment service without a money transmission license. This looks like the second time that a U.S. state financial regulator has gone after the company, after Square was served with a cease and desist order in Illinois in March 2013, also for failing to obtain a license before opening up for operations.
My Two Cents
Pandora's box is wide open re payments and moving money. From Square to BitCoin to Dwolla to even good old PayPal (which is the old man in the room), the world has changed. Suits like FL and IL's against Square won't stem the tide. Ironically only the NSA's deep spying techniques stand a chance to regulate the future movement of money. And even more so, the Wild Wild West of payments will occur outside the US, especially in country's that are lightly regulated.
The story below points out how the State of FL extracted a $507,000 payment from Square for a Money Transmission/Transmitter License. Earlier the State of IL sued Square.
