According to a notice on its website, digital asset custodian Prime Trust will cease operations in the U.S. state of Texas on January 31.
According to their website, they work with major players in the cryptocurrency industry like Swan, Abra, and Okcoin to offer custody and other services.
Prime Trust’s senior vice president of communications, Michelle Marin, said that the company informed affected customers on December 30 that Prime Trust had withdrawn its application for a Texas Money Transmitter License (MTL).
In an effort to be transparent, the company notified customers outside of Texas on January 23rd, according to Marin.
This, Marin explained, is a standard part of the process by which applications are renewed on an ongoing basis. To quickly reapply and resume operations in Texas is a top priority for us.
According to available records, the Texas Banking Commissioner fined Prime Trust $29,850 in 2016 for operating an unlicensed money transmission business in the state.
CoinDesk reached out to Prime Trust for comment on why it decided to withdraw its MTL application, but the company was uncommunicative.
Prime Trust has posted a notice stating that any Texans attempting to open an account will receive an error and that any new funds from the state will not be accepted. Account closure assistance is offered, and the company assures us that we will not block any disbursements.