Texas Is Not Friendly When It Comes To Cryptocurrency :(

in news •  7 years ago 


Texas Has Cracked Down On Arise Bank

First Bitconnect and now Arise Bank in Texas. Texas has not been so warm and nice when it comes to false claims and marketing of a decentralized bank. Arise Bank recently got raided and issued a cease and desist and demanded they leave Texas. We dont know where the road for banking and Bitshares will end and how Evander Holyfield feels how about these recent events as he is an investor in this banking platform. We must be careful how we  market things and the wording we use when creating new platforms involving cryptocurrency. I think we will face alot of resistance at first when building decentralized versions of financial institutions  as things are so unregulated. Bottomline, be careful what you say your product does and be mindful of where your setting up shop :).


“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”
According to Jared, the reason for the raid was that the SEC  claim aCO (Arise Coin) is a security, not a utility, and thus have to  comply with the corresponding regulations (which would in effect be a  huge barrier to success, from what I understand). There is also an  ongoing dispute about the use of the word "bank", which led Texas  Department of Banking to issue a cease and desist order January 5th. 
This is Arise Bank's official response. Everything connected to Arise Bank was seized by the authorities.  Whether or not this includes the ICO contributions is yet to be known. I  expect an official statement clarifying these issues to be released in  the coming days. 
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Bitshares might have to change it's name in the future.

I think they have problem with cryptocurrencies being used as currencies. I think we should word these currencies as assets to avoid getting shut down by the authorities.

That's exactly what they want you to do. They want these cryptocurrencies to be thought of as assets so that every purchase you make with a crypto coin is taxed double because they count it as selling one asset, converting it to fiat, and buying another asset with it.

  ·  7 years ago (edited)

Regulators immediately respond to the concept of cryptocurrency stating "It is not money. You can not pay taxes in crypto" ... which is all fine and dandy to hold the view but it shows the narrow mindedness in the world view they have.

sperm and seed banks are now at risk, and thus the Texas Cattle and Agriculture Industry

If Texas does not setup regulatory guidelines to both allow and regulate innovation in cryptocurrency, the innovation is going to all come from Estonia, Lithuania, etc. or Goldman Sachs jr's who start a startup... meaning the NYC-DC financial district approves... and thus within regulation enough to start something we can all appreciate... or so seems to be the sentiment carried out in Texas

On the otherhand, Texas taking the lead to shutdown Bitconnect or at least forcing them to stop there marketing in Texas until they could show that they were not a Ponzi scheme will always look good.

And to be fair to Texas regulators, there is always reason for concern when money is being sent to a less than clear business operator.

Here is Jared Rice's own defence which provides a lot more to back up his side of the story of being a real person than the profile of the non-existant AEnigma captial.

Texas also has in the past courted technology companies like Amazon seeking to avoid charging sales taxes on customers – an example of favorable treatment for digital businesses.

Fuck Texas..

Cryptocurrencies are such a threat to the banks and the established power structure. They allow one freedom that governments can't afford to allow.

Eventually though we will move beyond the need for any type of currency, fiat or crypto. Every person is entitled to the fruits of humanity's collective labor. We've been accumulating knowledge for thousands of years and we are now able to provide many more things to many people than we ever could've dreamed of just a century ago.

I look forward to the death of the days when we have to "earn a living"

please 1 upvote..... change my account..😭😭😭

Cryptocurrency is a part of our future.Don't know why Texas does so

so sad, why these ppl re preventing ppl from progressing and moving forward is beyond me smh

Hahahahaha. Someone actually thought Texas values liberty? Texas conservatives are statists pure and through, they just want a White Man State. They have zero reservations using state power against brown people, poor people or women. Don’t let the low tax burden and loose gun laws fool you, Texas has been a police state for a long time.

Hi guys, can you check my blog article about futuristic smartphones and tell me if there is a need for improvement?

Interesting how you mention both arise and bitconnect in the same sentence, maybe both scams? Don't blame Texas. Steem HQ lives in Texas no problem

Thanks for the post, curious to see how this plays out

Will be interesting to see if this has the same effect on Davor

I hope after bitconnect people must have already learned their lesson to not to invest in lending coins.