What legal & regulatory issues have payments, credit, and funding startups faced, or do they expect to face?

wrote, in his answer to : "Mad props for the guys at , , , , etc. who are attacking the payments world. Turns out that landscape is SUPER confusing and SUPER rife with legal landmines. We avoid many of those problems by using third party payment software, but still something we spend time, money and energy keeping tabs on. Lots of regulations in this world and something we keep our eyes on daily." What is top-of-mind in regard to these financial regulations?
Answer:

The most common regulatory issue startups and/or payment providers, et. al. face is regulatory compliance (after licensing). Not just taking the US as an example, but world over, payments and financial payment instruments & networks are licensed (in most cases). The issue can be complex, but if one were to read up on it, it is relatively easy to understand. Licensing is simply a means to a start if you are going to be working in a particular field. Depending on where in the world you might be operating in, a license and/or a NOC (No Objection Certificate) may or may not be required by your local, state or federal regulator. After having obtained the licensing, one of the most important and cumbersome task to handle, is regulatory compliance. Such can include Reporting: providing periodic reporting (usually, very specific formats, etc.), Internal & External Audit Checks KYC / AML etc. type checks. Fraudulent transactions checks Risk Mitigation

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