The Office of the Attorney General of South Carolina has given the go-ahead for two startups to resume business in the southern US state.
The Securities Division has removed cease-and-desist orders previously served against ShipChain and Genesis Mining for being accused of being in violation of state law as part of “Operation Cryptosweep” launched by the North American Securities Administrators Association earlier this year, as reported by Bitcoin News. The Statement by the Attorney General’s Office stated at the time:
“It is in the public interest, for the protection of investors, and consistent with the purposes of the Act that Respondent be ordered to cease and desist from engaging in the above-enumerated practices, which constitute violations of the Act, and pay an appropriate civil penalty for its wrongdoing.”
Shipping platform ShipChain refuted the accusation that its token sale wasn’t conducted in compliance with securities laws and that it was “not aware” that SHIP tokens were even offered to South Carolina residents as the sale was conducted out of state before being registered there.
The company launched in 2017 in California, reportedly raised USD 30 million in a private token sale in January. It was set up to deal with logistic issues which currently blight the industry to the tune of USD 50 billion annually on lost or stolen cargo.
The other company, Genesis Mining had been accused by the South Carolina Attorney General’s Office Securities Division of selling unlicensed securities and although the order to cease and desist has been dropped, no further details were given. The Icelandic company, founded in 2013, is the largest crypto mining consumer of power in Iceland and one of the largest companies offering Bitcoin mining services.
US States continue to legislate for cryptocurrency and blockchain activity in order to regulate for a rapidly growing fintech impact as more companies choose to do business in the country.
Nebraska, Florida, Arizona, Nevada, and Vermont, along with Maine, Hawaii, Illinois, and North Dakota are some of the many US states notably either in the process of presenting bills, enacting legislation or actively utilizing blockchain in state legislation.
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