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How can a money transfer startup with limited funds get money transmitter licenses in the US? Is there a workaround?
Yes, of course, there is a workaround. It is akin to leasing a car. Imagine if you will that you would be launching a taxi service – do you lease your cars? buy them? or build them? Conventional wisdom would say, lease, then buy and then build. The very same analogy applied to the money […]
It is not easy. Meaning, you need to have adequate finances for it. To operate a crypto exchange in the United States, you would need a Money Transmitter License in each state (including the BitLicense in New York). This would legally allow you to operate an exchange in the United States. There may be SEC […]
The answer is, it depends. Typically you would be able to open a company bank account, where at least one representative from your company has to reside inside the United States and be given the authority to sign on the account and be able to conduct banking transactions. This is (to the best of my […]
Depends, but generally speaking, the answer is No. It has been no in 1973, a no in 1984, a no in 1999, a no in 2013 and will be a no for the years to come. A CD or certificate of deposit is perhaps the lowest risk, lowest yield form of investment vehicle available to […]
You can bring as much money as you want to the United States. There are no limits or restrictions. A simple way to do this would be to wire-transfer the money into your bank account in the US and you would have to provide a source-of-funds proof statement, how did you get the money? Contrary […]
Why did remittances (money sent back home by immigrants) to low and middle-income countries hit an all-time high in 2018?
All empirical evidence suggests that the US Dollar got stronger against other currencies and hence people sent more. One would believe that if the beneficiary country’s currency depreciates, the same amount of money will come in, just more in local terms. Turns out, people try to send in more money to take advantage of the […]
Sure. TransferWise is not the only provider in town for great transfers. If that were the case, everybody else would had packed up and gone home. That is clearly not the case. It all depends on the corridor(s) in question and what type of money transfer service is being offered. TransferWise has its fair share […]
The government can incentivize. Use game theory to make sending remittances back home, earn more points. These are not necessarily points per se, but the more you send back, the more benefits you reap. I am always surprised, how many organizations, institutions, and the government especially forget about game theory and how it works in […]
From a consumer point of view, it is very easy for users to understand what they are buying and paying for. Just like groceries, when you buy say oil, or rice or lentil, you are buying up front and then use it over the coming days. The very same consumer purchasing mentality was applied to […]