Blockchain Startups Relieved of Regulatory Burden

Cease and desist orders against two blockchain startups has now been removed by the Securities Division of the Office of the Attorney General of South Carolina.

The regulatory body stated in public documents announcing the removal, that they have given “due consideration” to cases involving ShipChain and Genesis Mining and will vacate the cease and desist orders following the release of the documents.

ShipChain Inc. a blockchain startup that solves logistics and shipping problem for its clients received cease and desist orders from the South Carolina Attorney General’s Office Securities Division on May 21. The startup was accused of not complying with state security laws during its private SHIP token sale in January which yielded $30 million.

ShipChain reportedly said it had not in any way violated the state security laws and also that it was not aware that its tokens were sold to residents or organizations based in South Carolina, where the business now operates from.

The other startup, Genesis Mining Ltd, is a cloud-based mining company based in Iceland and were accused of selling “unlicensed securities” by the South Carolina Attorney General’s Office Securities Division on March 9.

“At no time… were the securities at issue registered with the Division or federal covered securities,” the regulators had said at that time.

With the blockchain startups now ordered to be ‘dismissed as a respondent from the administrative order’ signed by Deputy Securities Commissioner, Joyce Meyer, they can now carry out businesses freely in the South Carolina region.