Texas conducts an aggressive policy in relation to the cryptocurrency
The Texas authorities continue the war against the Crypto-currency, banning the activities of the 4th crypto-currency company just over a month ago.
The State Securities Commissioner of Texas, Trevi Isles, who signed an order to ban the trading activities of DavorCoin last Friday, said that its activities were contrary to certain provisions of the local Law on Securities. The crypto company offered to buy securities, misleading the public. The issuing company DavorCoin claimed that it pays dividends on customer deposits in its own cryptocurrency, which can only be purchased for bitcoins. Since last Thursday, the price of DavorCoin has fallen by more than 75%. On Monday it was only $ 1.60.
According to reports, on January 24, the Texas authorities banned the company from Hong Kong, which traded the r2b token. The company urged people to invest money in the cryptocurrency, luring customers with promises that the digital currency will soon become “one of the most valuable assets in the world.” To survive to fulfill their “forecasts” the company failed.
BitConnect also fell victim to unfair advertising – on January 4, the Texas regulator issued an order banning it. The reason for this decision was that the creators of BitConnect promised investors huge profits – more than 100%. On December 20, the Texas authorities tackled the USI-Tech limited, which advertised itself as “a foreign company that promised low-risk,” three-digit “income from investments associated with bitcoin mining.”
According to the representative of the Committee on Securities of the State of Texas, Joseph Rotanda, orders to suspend and ban the activities of the above crypto companies were preceded by a secret investigation of investment programs, crypto-currency.
Mr. Rotunda claims that the department’s suspicions that the companies attracted pension accumulations of citizens were misleading, in particular, without disclosing information that the investor is obliged to inform. The authorities of other US states have also taken certain steps against crypto-currencies, but not as active as in Texas.
In January, the authorities of Florida, North Carolina and Kansas warned investors about the riskiness of investing in crypto-currencies and ICO. In December last year, a similar warning was issued by the state of Massachusetts. The Department of Securities of North Carolina also issued a temporary order to ban BitConnect, five days after it was banned in Texas.
Over the past few months, the Securities and Exchange Commission (SEC) and the Derivatives Exchange Commission (CFTC) have also stepped up their efforts to counter speculative and fraudulent schemes in the crypto-currency market. Last week, the Securities and Exchange Commission announced that it had received a court order prohibiting the largest deal to sell tokens worth about $ 600 million.