FairX, a financial solutions provider associated with banking and digital assets, has shut down its tasks as it failed to set up a licensed national bank.
As per a FairX Twitter thread on July 19, the firm has fallen short of establishing a certified national bank due to a lack of financing. FairX was looking to lift funds for the planned bank during the last 14 months, which is known as :
“ . . . a new, certified, entirely governed national bank, modeled as a financial market utility, that could work with individuals and banking institutions to create a dematerialized bank deposit, denominated in USD. The bank was Frank Financial .”
“This dematerialized bank deposit would probably act, in many aspects, similarly to a stablecoin, except a stablecoin this was not. A stablecoin, by its definition, is not an asset that will settle trading decisions between banks in the context of, ACH (automated clearing house) or CC (credit card) transactions,” the posts further stated.
The company stresses that it succeeded in establishing its business plan to regulators, complying with Know Your Customer, Anti-Money Laundering as well as counter-terrorism financing rules, as well as in receiving positive feedback from regulators. After starting its binary stage, FairX recognized that it needed another injection of capital.
By this time, the crypto investment community backed out purportedly due to the bank’s perceived centralization.
Yesterday, Cointelegraph claimed that Indian cryptocurrency exchange Cryptokart ceased its operations. Cryptokart’s founder, Gaurang Poddar, described the shutdown of the exchange as “difficult, given the hard work we’ve put in” but concluded that on the whole, the experience was optimistic. Poddar stated he was pleased with the platform and looked intent on staying in the field, saying, “If you know anyone interested in launching their own exchange, please let me know .”