The Securities Commissioner of South Carolina has issued cease and desist order against ShipChain, a blockchain-based solution provider for the transport and logistics industry, for violating the state’s securities law.
The regulator noted that the company issues and offers its own cryptocurrency, ShipCoin, to users to access its platform. Through its agents, ShipChain is offering investment opportunities in this token to the residents of South Carolina.
Furthermore, the tokens offered and sold by ShipChain constitute securities under the South Carolina Uniform Securities Act.
“At no time relevant to the events stated herein was Respondent ShipChain registered with the Division as a broker-dealer, and no exemption from registration has been claimed by Respondent ShipChain,” the document reads. “At no time relevant to the events stated herein were the securities at issue registered with the Division or federal covered securities, and no exemption from registration has been claimed by the Respondent.”
The Securities Commissioner has issued cease and desist order against ShipChain and every related entity with the company. The company is also permanently barred from participating in any aspect of the securities industry in or from the State of South Carolina.
