Texas State Security Regulator takes aims at Overseas ICO with Cease-and-Desist

[magpie_lover]

A state securities regulator in Texas has put out a cease-and-desist order on Hong Kong-based firm called R2B Coin alleging that they were issuing unregistered securities to Texas residents with false and misleading information.

Well, most projects have been excluding US citizens from their token sales/ICO's. What this news proves is the fact that being an overseas entity does not necessarily make you immune to regulations & risks. This case is particularly interesting because Hong Kong is an Administrative Region of the PRC.

What will be the implications of more orders like this?

source

[cryptohunter]

this tells me as more countries regulate against illegal securities POW is going to make a big return

so unless you make the cut to be an accredited investor you wont be able to play anymore

Dev teams dont want to go through all these regulatory hoops. They will need to be super careful even if they do.

Smart dev teams will start to buy all the old POW coins that are now almost costing zero and also have no SEC type worries.

[plasmodesmata]

this tells me as more countries regulate against illegal securities POW is going to make a big return

so unless you make the cut to be an accredited investor you wont be able to play anymore

Dev teams dont want to go through all these regulatory hoops. They will need to be super careful even if they do.

Smart dev teams will start to buy all the old POW coins that are now almost costing zero and also have no SEC type worries.

I live in Texas. where can I move to better enjoy my crypto-retirements funds... hopefully somewhere warm.

You specify POW coins.... why not POS?

[magpie_lover]

this tells me as more countries regulate against illegal securities POW is going to make a big return

I'm not sure how having a specific consensus i.e PoW makes you immune to regulations. Can you elaborate more?

[speakoo]

Exclude China , crypto is better than before .Let's turn back to 4th,Sep 2018 , China banned icos ,after that , on  31th Oct , China banned all the Chinese exchanges.After that , the price of BTC went to the highest level .
Texas State  can not prevent people from cryptoes too.

[magpie_lover]

Exclude China , crypto is better than before .Let's turn back to 4th,Sep 2018 , China banned icos ,after that , on  31th Oct , China banned all the Chinese exchanges.After that , the price of BTC went to the highest level .
Texas State  can not prevent people from cryptoes too.

Part of me wants some sort of intervention so that some of these ponzi ICO's don't get away after cheating poor people who put in their hard earned money hoping for gains. But I've never been a big fan of the US flexing her muscles, especially outside the areas of her jurisdiction. Let's wait and watch how this unfolds. The Bitfinex subpoena is also interesting because they are also HongKong based.

[Angelia46]

As more countries regulate ICO.
So maybe you can't go to join the ICO raise, you can only buy tokens from the exchange, because the ICO crowdfunding only allows institutional investors to participate, which is my view.

[magpie_lover]

As more countries regulate ICO.
So maybe you can't go to join the ICO raise, you can only buy tokens from the exchange, because the ICO crowdfunding only allows institutional investors to participate, which is my view.

The idea that only the so called accredited investors can participate in ICO's is disgusting and truly against the principle of decentralisation. One of the ultimate goals of decentralisation is to provide an economic opportunity to the common man and not just these big institutions and high net worth individuals. There are some genuine ICO's out there and people should be given the opportunity to invest- thats my opinion.

[reypinioco]

A state securities regulator in Texas has put out a cease-and-desist order on Hong Kong-based firm called R2B Coin alleging that they were issuing unregistered securities to Texas residents with false and misleading information.

Well, most projects have been excluding US citizens from their token sales/ICO's. What this news proves is the fact that being an overseas entity does not necessarily make you immune to regulations & risks. This case is particularly interesting because Hong Kong is an Administrative Region of the PRC.

What will be the implications of more orders like this?

source

If they really received cease and desist from overseas they tried to scam people,but i dont think they will be sued because they are based on hongkong,U.S regulations doesnt subject any countries.This is why these scammers wont stop because there is no official regulations to most of these countries.