This poor fellow has a history of blaming the world for his own business failures. Just lookback at his claims re: facebook vs his own competing site at harvard. The money transmitter regulations are a reaction to a serious problem with shady transmitters in california that prey mostly on poor people sending money back home. In this funding climate there should be little problem in raising the capital necessary to secure a bond if your payments startup is attractive to investors. The problem is that nobody wants to fund facecash.
I actually thought that there had to be some horrible shady money transmission story that inspired the law, too, so I looked for it. I couldn't find it. If you find it, please let me know because I want to know what it is.
