FairX, a financial services company involved with banking and digital assets, has shut down its operations as it failed to establish a licensed national bank.
According to a FairX Twitter thread on July 19, the company has fallen short of setting up a licensed national bank due to a lack of funding.
"... a new, licensed, fully regulated national bank, modeled as a financial market utility, that would work with individuals and banks to create a dematerialized bank deposit, denominated in USD. The bank was Frank Financial."
"This dematerialized bank deposit would act, in many respects, similarly to a stablecoin, except a stablecoin this was not. A stablecoin, by its definition, is not an asset that can settle transactions between banks in the context of, say, ACH or CC transactions," the posts further explained.
The company stresses that it succeeded in introducing its business idea to regulators, complying with Know Your Customer, Anti-Money Laundering and counter-terrorism financing rules, as well as in receiving positive feedback from regulators.
After initiating its binary stage, FairX realized that it needed another injection of capital.
At that point, the crypto investment community backed out purportedly due to the bank's perceived centralization.
Yesterday, Cointelegraph reported that Indian cryptocurrency exchange Cryptokart ceased its operations.
Cryptokart's founder, Gaurang Poddar, described the shutdown of the exchange as "Difficult, given the hard work we've put in" but concluded that overall the experience was positive.
Poddar said he was proud of the platform and seemed intent on remaining in the field, stating, "If you know anyone interested in launching their own exchange, please let me know."
Crypto Banking Firm FairX Shuts Down Due to Lack of Financing
Published on Jul 21, 2019
by Cointele | Published on Coinage
Coinage
Recent News
View All
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.