The United States Consumer Financial Protection Bureau (CFPB) proposed on Tuesday to extend the supervision of nonbank digital payment companies dealing with over 5 million transactions annually.
According to the statement, the institution perceives that Big Tech companies and "other large technology firms" that offer services through digital wallets and payment applications should follow similar regulations "as large banks and credit unions already supervised by CFPB" to avoid users to fall in risk at the moment of transactions.
"Payment systems are critical infrastructure for our economy. These activities used to be conducted almost exclusively by supervised banks … Today's rule would crack down on one avenue for regulatory arbitrage by ensuring large technology firms and other nonbank payments companies are subjected to appropriate oversight." CFPB Director Rohit Chopra said.
