PayBase Operating Illegally without MSB Licenses

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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.

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Coin Fire

Coin Fire is a cryptocurrency news site started on June 6th of 2014. The site focused on hard-hitting investigative stories. Coin Fire was acquired by 99Bitcoins on October 2015.

32 Comments

  1. Paycoin is a total scam. I seriously have no sympathy left for anyone still in it at this point.

    Thanks Coinfire for exposing this sham for what it is.

  2. what about the other exchangers operating in the space w/o MSB licenses? coinbase, bitstamp, bitfinex, etc?

    • ‘Stamp and Finex aren’t US based. I haven’t been able to find anything on CoinBase or Cryptsy involving state level registration, although both clearly are registered at the federal level.

  3. Come on, this is actually rookie reporting here. They have 180 days from conducting the MSB activity to register with the appropriate state, government, or agency. This is identified in Fincen’s statutes.

    • You aren’t talking about the registration that means diddly squat are you?

      “Information contained on this site has been provided by the MSB registrant. FinCEN does not verify information submitted by the MSB.”

  4. start document
    MSB Registration Status Information
    Date: 01/21/2015
    The inclusion of a business on the MSB Registrant Search Web page is not a recommendation,
    certification of legitimacy, or endorsement of the business by any government agency.
    The MSB Registrant Search Web page, which is updated on a weekly basis, contains entities that have registered as Money Services Businesses (MSBs)
    pursuant to the Bank Secrecy Act (BSA) regulations at 31 CFR 1022.380(a)-(f), administered by the Financial Crimes Enforcement Network (FinCEN).
    Information contained on this site has been provided by the MSB registrant. FinCEN does not verify information submitted by the MSB.
    Information provided on this site reflects only what was provided directly to FinCEN. If an error or incomplete information is detected
    on this site, the registrant should follow the appropriate instructions for correcting a Registration of Money Services Business (RMSB) form.
    MSB Registration Number: 31000058736200
    Registration Type: Initial Registration
    Legal Name: PayBase, LLC
    DBA Name:
    Street Address: 34 East Dudley Town Road
    City: Bloomfield
    State: CONNECTICUT
    Zip: 06002
    MSB Activities:
    Dealer in foreign exchange, Money transmitter
    States of MSB Activities:
    Alabama, Alaska, American Samoa, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District Of Columbia,
    Federated States Of Micronesia, Florida, Georgia, Guam, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas,
    Kentucky, Louisiana, Maine, Marshall Islands, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri,
    Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Northern Mariana Islands,
    Ohio, Oklahoma, Oregon, Palau, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee,
    Texas, Utah, Vermont, Virgin Islands, US, Virginia, Washington, West Virginia, Wisconsin, Wyoming
    All States & Territories & Foreign Flag: All States/Territories
    Number of Branches:
    Authorized Signature Date: 12/26/2014
    Received Date: 12/29/2014

    end document

  5. Definitly u are in a personal war against Gaw! but also u are hurting the complete cryto world with ur personal vendetta :( Did u invest in Gaw? I hope yes and dont come now talking about the true and blablabla.. if it is scam we will see but what is happening for real now is all the damage u are doing (similar to what happens with Cannabiscoin and the bad doings of Cannacoin, u are doing the same)

    • Another hashcult member with a reading comprehension deficiency.

      What you linked says they have 180 days to register as an MSB after establishing the business.

      Nowhere does it say they can begin operating as an MSB without state licenses.

  6. Awful convenient info although they’ve not done any transactions yet which require the license so they are therefore NOT operating illegally.. You will be exposed for what YOU really are. Go ahead and keep drawing attention to yourself though. Your little ‘news site’ or should I say blog, is at best a poorly written joke.

    • Wrong they’ve made plenty of transactions in the form of credit cards via Stripe, Gyft cards and a host of other scams that have actually transpired then ultimately failed. Not only are they criminals, they’re not very good criminals.

    • “Awful convenient info although they’ve not done any transactions yet which require the license so they are therefore NOT operating illegally..”

      Not true. They’ve done fiat purchases using Stripe.

  7. Wow some more felony charges to add to the list, keep up the investigation Coinfire. This paycoin scam needs to be shut down and the persons involved need to be brought to justice to clean up the crypto community. This wouldn’t be possible without the work of Coinfire.

      • The inclusion of a business on the MSB Registrant Search Web page is not a recommendation,
        certification of legitimacy, or endorsement of the business by any government agency.

        The MSB Registrant Search Web page, which is updated on a weekly basis, contains entities that have registered as Money Services Businesses (MSBs) pursuant to the Bank Secrecy Act (BSA) regulations at 31 CFR 1022.380(a)-(f), administered by the Financial Crimes Enforcement Network (FinCEN).

        Information contained on this site has been provided by the MSB registrant. FinCEN does not verify information submitted by the MSB. Information provided on this site reflects only what was provided directly to FinCEN. If an error or incomplete information is detected on this site, the registrant should follow the appropriate instructions for correcting a Registration of Money Services Business (RMSB) form.

  8. Sascha Kalender on

    info ? thats now a personal Vendetta against it – is that the way journalism is known in the us ? i think not – a lot of not total false but also not total true – is NOT a News and definitely not an Investigation – if this is new and different i dont want to read it

  9. I wonder what company legal name you requested. There can be many DBA names for this. I do see you do have time in your hands. I wonder what you could do if you were actually a productive citizen.

    • The funny thing about this article is, This is actually a GOOD thing for GAW. They are following FEDERAL guide lines when it comes to FINCEN reporting.

      All banks and Credit Unions have to do this.

      • followiing the giudelines means being approved to do business before doing it. They are breaking the rules and pretending otherwise by waving around documents saying “we applied!”

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