Texas Commissioner files Emergency Termination on Bitconnect

Nishanth Shetty

Nishanth Shetty

January 6, 2018 9:52 am

Texas Commissioner files Emergency Termination on Bitconnect | Coindelite News
11352 Total Views

Bitconnect News

The Commissioner of the Texas State Securities Board filed emergency termination in order to stop the investment programs offered by England-based cryptocurrency platform, BitConnect.

Travis J. Iles, Securities Commissioner, who filed the order says, Bitconnect’s allocation of its own token, Bitconnect Coins, as well as other cryptocurrency-related investment services falls under the classification of securities. Anyhow, Bitconnect failed to register as required under the Texas Securities Act and State Securities Board Rules and Regulations.

However, it is unregistered to sell securities in the states of Texas, the commission informed that the sales agents of Bitconnect were targetting Texas via internet advertising, social media campaigns, and marketplaces.

The regulatory actions come in response to BitConnect’spurpose to go through a token offering-based crowdfunding initiative, or Initial Coin Offerings (ICOs).

Bitconnect’s solicitation activities include claims that investors will receive annual returns in excess of 100 percent, according to the commissioner.

The Board’s official site wrote in a statement:

“Bitconnect has disclosed virtually nothing about its principals, financial condition, or strategies for earning profits for investors. It has not provided a physical address in England. Despite providing no information on how it will make money for investors – including the algorithms behind the Trading Bot – Bitconnect is touting its investments as a ‘safe way to earn a high rate of return. Investing in Cryptocurrency, however, carries significant risk because of regulatory and legal actions, competition from other cryptocurrencies, and the extreme volatility in the price of many cryptocurrencies. The company operates websites and deploys online advertising to recruit sales agents, which it calls ‘affiliates.’ The company provides marketing material to affiliates, including online presentations, and pays them commissions for referrals that result in investments in Bitconnect programs.”

No Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Swiss – FINMA Regulate ICOs and Publish Guidelines

Guidelines Published by the Swiss Financial Market Supervisory Authority for ICO Organizers. The Swiss Financial Market Supervisory Authority (FINMA) has published a press release regarding how it plans to apply financial market legislation in handling queries from the ICO organizers. The post also describes the information FINMA requires for dealing …

Spain to Become Next Cryptocurrency Hub After Swiss

Spain is going to Legalize Cryptocurrency after Swiss Recently Rolled out Guidelines for ICOs While other European countries attempt stricter regulations on cryptocurrencies, Spain seems to be following Switzerland’s initiative ahead by proposing crypto-friendly legislation. Spain on the Blockchain Spanish Prime Minister Mariano Rajoy’s People’s Party is all set to …

Indian Investors Forced to Buy Cryptos Abroad; as the Govt. Pull Strings

Cryptocurrency Regulations Tightened in India; People are looking to Buy Cryptocurrencies Abroad. Since cryptocurrency regulations are becoming more efficient in India, a new trend has begun in the country by acquiring cryptocurrencies from overseas, either from relatives, friends or with abroad accounts. Increased Regulations Indians are looking forward to buying …

-->

Pin It on Pinterest

Shares
Share This