The Banking Commissioner of the state of Texas has filed a non-appealable Cease and Desist Order against AriseBank, which claims to be “the world’s first decentralized cryptocurrency bank,” ordering them to shut down operations and stop its alleged acquisitions and ICO plans.
AriseBank markets itself as a provider of full service alternative financial system that combines strengths of conventional and decentralized banks, a blockchain exchange, and a gold depository.
Throughout the write-up, the state of Texas lists a number of details, but it seems the main issue that the authority has with AriseBank’s business is that the startup is using the term “bank” in its name and marketing materials. According to the order, the crypto company is not registered to do the business of banking in this state, and thus not allowed to offer their services to consumers in Texas.
It appears that the TX commissioner Charles Cooper is deeply skeptical of the claims made by AriseBank.
Part of his Cease and Desist Order reads: “The Cease & Desist Order was based on the Commissioner’s finding that AriseBank violated Texas Finance Code Chapter 31 by using the term “bank” in its name and marketing materials to imply that it is in the business of banking in this state. The order requires AriseBank to cease and desist from implying that they engage in the business of banking in Texas. AriseBank is further required to clearly disclose that they do not offer their services to consumers in Texas.”
Last month, AriseBank claimed that its has signed an agreement to buy the Federal Deposit Insurance Corporation (FDIC) insured bank, which has been in operation in the US for over a century. If things go well, the acquisition should give the crypto startup a full license of traditional banking, as well as a global network of ATMs and debit cards.
AriseBank also announced plans to raise a billion dollars in a record ICO to finance its alleged real-time crypto-banking platform.
TheBitcoinNews.com – Bitcoin News source since June 2011 –
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.
Advertise with us : Advertise
Our Social Networks: Facebook Instagram Pinterest Reddit Telegram Twitter Youtube
