Prime Trust, one of the leading crypto custodians, recently announced that it would suspend its operation in Texas. The firm announced after withdrawing its application for the Texas Money Transmitter License.
The license would have enabled it to operate within the area. However, the crypto custodian promised to reapply for the license again at a later date.
Prime Trust Withdraw MLT Application
The lack of a universal crypto regulatory framework continues to place many crypto platforms at the mercy of financial regulators. Some crypto platforms have been forced to withdraw operations in some regions due to stringent crypto rules.
Prime Trust, a popular crypto asset custodian in the US, recently told its customers in Texas of its plans to temporarily halt operations. In addition, the firm said the suspension would take effect from January 31st.
Furthermore, the custodian of the digital asset explained that it had withdrawn its application to renew its Texas Money Transmitter License (MTL). The Texas Money Transmitter License is the legal evidence that backs Prime Trust’s crypto operations in the state.
Consequently, without the MLT license, the custodian cannot legally operate within the Lone Star State. Consequently, Prime Trust’s customers in Texas would not be able to open new accounts as the system would keep showing error feedback.
In addition, there won’t be any further contributions to accounts belonging to Texas citizens. The crypto asset custodian also revealed that it is willing to assist customers in closing their accounts, adding that disbursements are still available.
A Contradictory Statement
As a prominent crypto custodian, Prime Trust provides institutional crypto services to investors such as OkCoin, Abra, and Swan. The Senior VP at Prime Trust, Michelle Marin, stated in an interview that it is normal for the firm to renew its MLT license periodically.
She added that extending their renewal application is a standard procedure. However, Marin stated that they plan to swiftly apply again so their operation in the state can continue as soon as possible.
Late last year, Prime Trust was fined a whopping $29,850 by Texas’ banking regulators, according to reports. The fine was because the custodian was carrying out public transactions in the state without a valid license from the regulators.