Texas regulators issued a ban on overseas ICO activities

nOn the 24th of January, the Texas Securities Commission (TSSB) signed an urgent order to stop cryptocurrency-related activities of a Hong Kong company called R2B Coin and allegedly provided false and misleading information. This is the third ban issued by the state regulator since December of last year, indicating the agency’s stewardship of cryptocurrency-related investments is growing.n
nTranslation: Clovern
Texas State Securities Regulatory Authority once again issued a ban on cryptocurrency-related activities.n
According to an emergency order signed January 24, the Texas Securities Commission (TSSB) targeted a Hong Kong company called R2B Coin, which said it is issuing unregistered securities to residents of the state and is allegedly providing False and misleading information.n
According to R2B website, its pre-digging currency “R2B Coin” issue price will be between 0.0008 to 188 US dollars. The company further claims that R2B Coin prices will reach $ 200 within three months of the launch of the transaction and will rank among the top ten digital currencies in the world in a year to a year and a half.n
The state regulator said such outreach involves “misleading and deceptive” information that is in line with the definition of securities.n
Not only that, but the company also claims it has licensed it worldwide, but Texas regulators said the company did not register within its jurisdiction and after a series of telephone inquiries from local investors found it in breach State securities laws and regulations.n
The document further details the alleged involvement of a total of 14,500 investors from 34 countries, including the United States, Sweden, Italy and India. In addition, the company is accused of providing misleading promises to promote the potential of R2B Coin; for example, investors can trade tokens with listed stocks on a related or New York exchange.n
As a result, Texas regulators issued an emergency ban that stopped R2B Coin’s activities against Texas residents. R2B Coin appealed for 31 days after receiving the ban. The company has not yet responded to an e-mail from CoinDesk seeking comment.n
This is the third state ban on cryptocurrencies since December last year, signaling the agency’s stepping up its regulation of cryptocurrency-related investments. Earlier, the agency also issued a similar order to USI-Tech in Dubai and BitConnect, which was subsequently closed and is now facing a class action suit.n

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