Texas fines Singapore payment processor for unlicensed crypto money transmission

The Texas Banking Commissioner imposed a consent order against a Singapore-based payment-processing company on September 23, accusing it of operating as an unlicensed money transmitter. The order alleged that the company violated state law by receiving money or monetary value and transmitting it using stablecoins and other non-convertible cryptocurrencies to merchant partners or designated recipients.

Although a subsidiary of the company had applied for a Texas money transmission license, the order found that the parent company itself lacked proper licensing or authorization at the time of the inquiry. The Department of Banking concluded that the company was not exempt from licensure under state regulations.

The consent order requires the company to pay a $20,000 administrative penalty within 30 days of the effective date. Additionally, the company must halt all money transmission activities in Texas until it secures the necessary license or exemption. Notably, the order does not restrict the subsidiary from continuing its money transmission operations in Texas, provided it remains properly licensed.