South Carolina Dismisses Enforcement Actions on Blockchain Startups
The Securities Division of the Office of the Attorney General in South Carolina has dismissed the cease and desist orders against two blockchain startups.
The first cease and desist order was against the shipping platform ShipChain for violating South Carolina’s securities status on May 21. Initially, the regulatory body accused ShipChain of violating securities laws during their private SHIP token sale.
The second firm is Genesis Mining, a cloud mining platform that was previously stopped by the Securities Division for selling unlicensed securities. Now, the charges against this firm have been dismissed as well.
According to the department, the mining by Genesis and the tokens by ShipChain should have been classified as securities, but weren’t.
Initially when the cease and desist order was imposed in May, ShipChain refuted the accusation by stating that their token sale was done in compliance with the state laws. Furthermore, the company emphasized that they were ‘not aware’ that the SHIP tokens were even offered in South Carolina as the token sale was done before they set establishment in the state. The company had refuted the Government’s order stating,
ShipChain has not been offering, issuing, or selling tokens, and already had no plans to do so again for the foreseeable future; that all offers of the tokens in that initial sale were made to institutions and persons who qualify as accredited investors.
After receiving more information from ShipChain, the Office of the Attorney General’s Division of Securities decided to dismiss the charges against the company. Genesis Mining was also lucky to have the cease and desist order removed. They expressed their happiness through a tweet.
We’re happy to announce that South Carolina vacated and dismissed @GenesisMining from its Cease and Desist order. As we previously said, engagement with regulators and in public policy is key to moving our industry forward >> http://bit.ly/2mKH4qH #GenesisMining #GMRadiantTech
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