Texas started to take a hardline stance against cryptocurrency firms in December 2017. The state itself isn’t against cryptocurrencies themselves. However, Securities Commissioner Travis Iles doesn’t enjoy misleading business practices. Iles understands both the benefits and dangers of cryptocurrencies as investments. His office has issued nine sanctions against cryptocurrency firms in Texas since December 20.
London-Based BTCRUSH Turned Away From Texas
BTCRUSH, a firm based in London, became the latest recipient of sanctions in Texas. Iles banned the company from operating in Texas due to deceptive business practices. Allegedly, BTCRUSH featured videos of its cryptocurrency mining farms on its website. All three mining farm videos came from stock video footage that was heavily edited. It doesn’t help that BTCRUSH isn’t registered in Texas and guarantees a 4% return per day.
Plus, the company even offers a money-back guarantee on investments.
Forex EA & Bitcoin Investment LLC Eliminated As Well
The Securities Commissioner also banned Forex EA & Bitcoin Investment LLC from operating in the state. On its website, investors are told they’ll earn a guaranteed return on investment. A $5,000 investment would return $50,000 in profit within 21 days, claims the website. Iles pointed out that the firm doesn’t disclose how to investors how it operates or how investments can be guaranteed in such short periods.
A Strong Approach To Protecting Investors In Texas
As Securities Commissioner, Iles continues to go after deceptive and misleading companies. He focuses on many areas of investment and not just cryptocurrencies. His office has taken an interest in cryptocurrencies lately due to the high chance of fraud. With the crypto craze in full effect, more and more investors look for ways to earn a huge return through cryptocurrencies like Bitcoin and Ethereum.
Iles notes his office plans to continue going after cryptocurrency firms. Then again, the Texas Securities Commissioner hasn’t assailed legitimate businesses. Various cryptocurrency firms and exchanges operate within Texas without a problem. They follow standard business practices and don’t make wild claims or guarantee returns. Therefore, Iles hasn’t gone after businesses trying to provide a legitimate service to Texans.
Likely, more cryptocurrency firms will face the wrath of Travis Iles. His desire to protect investors in Texas drives his commitment to kicking shady businesses out of the state. He holds a lot of power to get the job done, and it remains to be seen which other firms face penalties from his office. Regardless, investors in Texas can still sign up with and invest with legitimate cryptocurrency exchanges.