Texas Banking Commissioner Strikes AriseBank with Cease and Desist Order

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 it to shut down operations and stop its alleged ‎acquisitions and ICO plans.‎

AriseBank markets itself as a provider ‎of a full service alternative financial system that combines the 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 that 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 it is thus not allowed to offer such services to consumers in Texas.‎

It appears that the TX commissioner Charles Cooper is deeply skeptical of ‎the claims made by AriseBank. ‎

Part of the 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 it had 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 traditional banking license, 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. ‎

(Photo: pixabay)

bitcoin
Bitcoin (BTC) $ 32,613.00 5.92%
ethereum
Ethereum (ETH) $ 1,980.51 6.88%
tether
Tether (USDT) $ 1.00 0.34%
binance-coin
Binance Coin (BNB) $ 302.97 7.14%
cardano
Cardano (ADA) $ 1.30 6.15%
xrp
XRP (XRP) $ 0.673361 8.25%
dogecoin
Dogecoin (DOGE) $ 0.221784 18.88%
usd-coin
USD Coin (USDC) $ 0.999021 0.38%
polkadot
Polkadot (DOT) $ 17.59 11.61%
binance-usd
Binance USD (BUSD) $ 0.998113 0.54%
S&P 500  ^GSPC 
$4,216.46  $50.01  (1.20%)
Dow Jones Industrial Average  ^DJI 
$33,791.59  $501.51  (1.51%)
NASDAQ Composite  ^IXIC 
$14,126.83  $96.45  (0.69%)
Russell 2000  ^RUT 
$2,280.10  $42.36  (1.89%)
Crude Oil Jul 21  F*CL.NYM 
$72.88  $1.59  (2.23%)
   
$0.0000  $0.0000  (0.00%)