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Comment on Balanced (YC W11) Adds Bank Payments to its P2P Payments Platform

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It looks like a great product, but I'm pretty sure you don't have and have not applied for a money transmission license (at least according to http://www.dfi.ca.gov/Publications/summaries/2013/January.pd...). You should go to Sacramento on March 11th.

http://abnk.assembly.ca.gov/hearings

Are you saying this service is illegal without the money transmission license?

Yes I am--not to pick on them though. They are one startup of many and if everyone pretends it's not an issue then the law will never get fixed.

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin...

Assembly Bill 786 is about to make it a lot worse.

http://www.leginfo.ca.gov/cgi-bin/postquery?bill_number=ab_7...

I believe I've read money transmission licenses vary from state-to-state. Do you know of any resources giving more detail on when you need one and how to get one in the various states?

Talk to a lawyer.

Other than that, my white paper is probably your best bet for general information. http://www.thinkcomputer.com/corporate/whitepapers/heldhosta...

Thanks!

Thanks, Aaron!

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