regulation of money transmitters

[cman@communities.com (Douglas Barnes)]

I just had a very pleasant conversation with the California
State Banking Department; they are sending me copies of the
relevant laws, and applications for the necessary licenses
to sell negotiable instruments and transmit money overseas.
I spoke with an examiner and she didn't seem to think there was
anything special about them being _digital_ negotiable
instruments.

Apparently it involves a $5,000 non-refundable application fee,
background investigations, examination of the soundness of the
corporation, and the posting of a bond proportional to the
anticipated volume (updated if volume is larger.) All very
reasonable.

Those who might be intereted in actually doing something with
this information should contact Alicia Adoc at (415) 263 8549,
or the banking department in the applicable state.