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)