New Cease and Desist Order Issued Against Union Bank Payment Coin (UPBC) by North Dakota Financial Watchdog
It has just come to light recently that the North Dakota Securities Department has just issued a ‘cease and desist order’ against Union Bank Payment Coin (UBPC) in relation to the bank “illegally” promoting a scammy ICO project.
To elaborate further on the matter, it is also being reported that the regulatory body has accused UBPC of being a copycat entity— one that has used the business model of Liechtenstein-based Union Bank AG— which is considered by many to be a pioneer within the crypto sector.
The Nitty Gritty Of The Matter
According to Karen Tyler, the issuer of the cease and desist order, this latest injunction is a part of Operation Cryptosweep, ”a multi-jurisdiction enforcement effort that brings together regulatory agencies from over 40 states in the US and Canada”.
In this regard, it is worth noting that Union Bank Payment Coin and its associates have been asked to stop promoting their crypto fundraiser immediately (since the venture is unregistered and potentially fraudulent).
Also, it is quite evident that UPBC’s website is a blatant copy of Union Bank AG’s official page, with the project even using the same wordings as that of Union Bank AG to promote its financial offerings. For example, on UPBC’s official website it states that they are presenting investors with a “security token offering that is designed to store wealth by utilizing income-producing digital assets.” — this line has been lifted straight up without any modifications being made to it from AG’s homepage.
If that wasn't enough, even the IP address for Union Bank Payment Coin is located in Russia and the identity of the individual who owns the domain name is also not known at this time.
“Because ICOs are sold over the internet and pitched heavily through social media platforms, North Dakotans can be exposed to the offers whether the promoter is down the street or on the other side of the globe. Financial criminals continue to cash in on the hype and excitement around blockchain, crypto assets, and ICOs – investors should be exceedingly cautious when considering a related investment.”
In closing out this article, it is worth mentioning that amidst all of these weird developments, the real Union Bank has stated that it plans to release its very own cryptocurrency in the near future. This is in part due to Lichtenstein offering crypto enthusiasts with a host of blockchain-friendly regulations that allow businesses to issue their very own security tokens quite easily.
“As a fully licensed and regulated bank we are in a privileged position to combine all the advantages of traditional banking with the possibilities inherent in the blockchain technology. As such, our fiat-backed Union Bank Payment Coin has the potential to disrupt the approach to international trade and international cross-border transactions.”
It now remains to be seen how UPBC handles this situation and if North Dakota’s financial watchdog takes further action against the firm.