Last updated on January 2nd, 2018 at 12:00 am
Coin Fire’s series of investigative reports about Paycoin and PayBase continues with the revelation today that PayBase, which has acted as a money transmitter business, does not have the required licenses in all the states they operate.
While the company applied for federal MSB status, acknowledged by FinCEN on 12/29 (original file was 12/26), they have not received a single MSB license in a single state that responded to our request in the United States as of January 21st. The revelation opens a potential legal can of worms for the company who has operated as a MSB since it opened and has done so without the proper licenses.
MSB licensing is a long and complicated process in many states while it is fast and as simple as paying an application fee and providing the relevant paperwork in others.
Coin Fire investigative reporters have checked with state regulators and we are sharing the results of our information requests with each state below. Coin Fire is also publishing the certified documents (when they were provided to our editors) and each regulator’s contact details so that others may verify the authenticity of the information obtained.
Simply having federal MSB status does not qualify a business such as Paybase to do business in each individual state. A state license is required in most states before any money transmitting can take place and if customers are in a state where a license is not yet acquired, it can have serious repercussions on the company.[table id=2 /]
Every state that responded to Coin Fire’s current requests about license status has responded that the company is not licensed.
This lack of licensing certainly will not help Paybase given the current regulatory environment and the current investigations taking place against Paybase, Cantor Fitzgerald’s Stuart Fraser and Mr. Homero J. Garza at various regulatory organizations.