FaceCash Shuts Down in CA

FaceCash, a mobile payment system launched by Palo Alto, CA-based Think Computer Corporation and profiled by Xconomy in February, said today that it has shut down operations in California and is refunding deposits made by California residents. The company says it determined that it would was unlikely to receive a license from the state to conduct money transmissions, thanks to provisions of a 2010 California law that imposes higher financial stability requirements on companies that move money within the United States. FaceCash said in a statement it can meet the law’s minimum $500,000 net worth requirement and the $750,000 aggregate surety bond requirement, but added that “the unfortunate reality is that the California Department of Financial Institutions (DFI) requires licensees to have far more than the dollar figures specified by the statute.” The company added, “We are incredibly sorry for the inconvenience and hope that we can remedy the situation soon.”

Wade Roush is a freelance science and technology journalist and the producer and host of the podcast Soonish. Follow @soonishpodcast

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