Texas Securities Regulator Issues Cease-and-Desist Order

A state securities regulator in Texas issued another cease-and-desist order against a Hong Kong-based “R2B Coin”
02 February 2018   195

A state securities regulator in Texas issued another cease-and-desist order against a Hong Kong-based “R2B Coin”

The Texas Securities Commissioner issued an Emergency Cease and Desist Order. The order was released on January 24, 2018 by Securities Commissioner Travis J. It explains that Hong Kong-based firm R2B Coin issued unregistered securities providing false information to Texas residents.

The securities regulator stated that the company’s offering, which is being promoted by misleading information, falls under the definition of securities.

As it is indicated on the R2B website the start price of the coin is ranging from $0.008 to $188. The website claims that R2B coins will reach $200 within three months after the start of trading.

According to information on the website, the company claims to be globally licensed. However, the Texas regulator informed that R2B is not registered in its jurisdiction and has violated securities regulations by soliciting investors from Texas through a series of conference calls.

According to the document, the company claimed to have 14,500 investors from 34 countries including U.S., Sweden, Italy, and India. The company also made misleading promises, for example, that investors can change their tokens for stocks at New York or Hong Kong exchanges.

This is the third state’s cease-and-desist against a crypto company. Previously, The Texas Securities Commissioner issued similar orders to Dubai-based USI-Tech and BitConnect.

Bank of America: Cryptocurrencies Are a Threat

Bank of America (BoA) has admitted to US regulators it can not pretend any longer that cryptocurrencies are not a threat
23 February 2018   74

On February 22, the report was filed with the US Securities and Exchange Commission (SEC). It listed a range of economic, geopolitical, and operational risks that the Charlotte, NC-based bank faces as it heads into the new fiscal year. Crypto adoption was on the list for the first time.

Bank of America (BoA), which recently banned purchasing of crypto with credit cards, stated that this and other similar policies could cost the bank clients.

Clients may choose to conduct business with other market participants who engage in business or offer products in areas we deem speculative or risky, such as cryptocurrencies.

The second largest bank in the U.S. said that adoption of cryptocurrencies could require the bank to make “substantial expenditures” to update its existing services and remain competitive with upstart firms.

The widespread adoption of new technologies, including internet services, cryptocurrencies, and payment systems, could require substantial expenditures to modify or adapt our existing products and services.

According to the Bank of America, cryptocurrencies could limit the institution’s ability to comply with anti-money laundering regulations.

Eventually, this is one of the first public admissions that financial institutions are beginning to worry that mass cryptocurrency adoption could one day become a reality.