On September 23, the Texas Banking Commissioner issued a consent order against a Singapore-based payment-processing company for allegedly conducting unlicensed money transmission. According to the order, the Department of Banking concluded that, by receiving money or monetary value and transmitting an equivalent value to its merchant partners or a recipient designated by the merchant using stablecoins and other non-convertible cryptocurrencies, the company had been conducting money transmission in violation of state law. Although a subsidiary of the company had applied for a Texas money transmission license, the order found that, at the time of the department’s inquiry, the company itself was neither licensed nor acting as an authorized delegate of a licensed money transmitter and was not exempt from licensure.

The consent order requires the company to pay a $20,000 administrative penalty to the department within 30 days of the effective date of the order. The company must also cease conducting money transmission in Texas until otherwise licensed or exempt from licensure. The order does not prohibit the company’s subsidiary from engaging in money transmission activity within Texas while duly licensed by the department.