Elon Musk's X Money Reportedly Facing Delays & High Staff Turnover

In a recent report, it appears that Elon Musk’s ambitious plan to transform social media platform X (formerly Twitter) into a platform for money transfers has hit a snag. According to The Information, the company is facing scrutiny from regulators in New York. They’re raising concerns about the platform’s ability to prevent illicit activities like money laundering and terrorism financing.

Musk has long envisioned X as an “everything app” and a “global town hall.” However, the progress on the money transfer feature, known as “X Money,” seems to be several years behind his original timeline. A key reason for this delay appears to be a clash with New York regulators. As the gatekeepers of the world’s financial capital, they have very strict requirements.

X Money’s US launch is reportedly on hold as regulators raise concerns

The report suggests that New York regulators are not convinced that X has the necessary staff to ensure full compliance with their stringent guidelines. Another point of contention is Musk’s reported reluctance to implement secure sign-in tech. For example, Musk would not currently want to implement two-factor authentication for payments. Meanwhile, regulators believe they are crucial to prevent fraud.

This regulatory hurdle in one of the world’s key financial hubs has reportedly led to a slowdown in progress. It would also have led to a high turnover of staff at X Money, including key compliance officers.

Musk’s attention possibly divided

This is a familiar pattern for Musk, whose attention appears to be divided among his many ventures. The report notes that he has been heavily focused on his AI chatbot, Grok. He has been busy actively sharing his AI features on X. This shift in focus was also highlighted during a recent advertising update, where Musk expressed his desire to “revolutionize” ads on the platform. Basically, he aims for users viewing them because they will be for products and services they actually want.

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