ShipChain is ordered to cease in South Carolina

The securities department of the South Carolina’s Office of the Attorney General has directed blockchain startup ShipChain to pause working in the state
23 May 2018   762

A cease-and-desist order was sent to the company by the securities commissioner  for ostensibly violating securities laws. As claimed in the order, ShipChain, which is a freight logistics platform based on the Ethereum blockchain, has been “offering investment opportunities” and marketing its tokens to South Carolina citizens both online and at live events, yet has not admitted as a broker-dealer to process in the state. The ShipChain ecosystem is fueled by ShipCoin, a cryptocurrency that is the sole payment method on the firm’s platform.

According to the South Carolina securities law, “investment contracts constitute securities”, and it’s wrongful to sell securities that are not registered in the state. Finally, ShipChain, that is situated in Wilmington, Delaware, “transacted business … as an unregistered broker-dealer” and disrupted the law. The cease-and-desist paper was sent to ShipChain care of attorney, Julian Zegelman of Velton Zegelman in San Jose, Calif.

The study is going on and it’s a part of a broader sweep by the North American Securities Administrators Association announced in recent days dubbed “Operation Cryptosweep”. It is to “crack down on fraudulent Initial Coin Offerings (ICOs), cryptocurrency-related investment products, and those behind them” across the United States and Canada. A number of investigations are either pending or have been ended in the month of May alone, and ShipChain is called among them.

ShipChain isn’t being charged of promising any bloated returns or operating a scam. The aim of the order is to refine the fact that the firm is marketing and selling investment contracts directly to South Carolina residents without registering cryptocurrency as a security.

South Korea to Invest $1B in Blockchain Startups

Blockchain is a revolutionary technology and an integral component of the Fourth Industrial Revolution, local authorities believe
19 February 2019   93

Until 2022, Seoul authorities are investing 1.2 trillion South Korean won ($ 1.07 billion) in fintech startups working with distributed ledger technology. This is reported by CoinDesk.

Funds will be allocated for the development of new technologies through the Seoul Innovation Growth Fund, created last year by local authorities. The foundation will support startups working on various solutions, including those that are in the early stages.

In the first half of this year, the Fund will allocate 13.25 billion won ($ 11.75 million) and 8.4 billion won ($ 7.45 million) in the second half of 2019. For the Korean authorities, the blockchain is a revolutionary technology and an integral component of the Fourth Industrial Revolution.

The officials also noted that the average investment per start-up at an early stage of development in South Korea is almost seven times lower than, for example, in Silicon Valley.

Last fall, Seoul authorities submitted a five-year development plan for the blockchain industry.