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Indian man arrested on charges of crypto fraud via ‘Morris Coin’ scheme

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District police have arrested a 36-year-old man from the Malappuram district of the south Indian state of Kerala on charges of operating a cryptocurrency scam.

Nishad has been charged under the Prize Chits and Money Circulation Schemes (Banning) Act by the district police chief U Abdul Karim.

A team led by police inspector P Vishnu seized several documents from Nishad’s house and alleged that he has duped thousands of people from across India of hundreds of thousands of dollars. 

Nishad, who is also the managing director of a Bengaluru-based startup Long Rich Technologies, allegedly lured investors into investing in the cryptocurrency “Morris Coin.”

According to the police, the investors were promised a daily return of 270 rupees (~$3.60) for 300 days if they deposited a minimum amount of 15,000 rupees ($200) into  Morris Coin. 

The scheme suggested that the investors would be able to exchange Morris Coins after the 300-day lock-up period. Investors were reportedly promised added benefits for bringing more people to deposit funds into the scheme.

The police said that Morris Coin was not listed on any exchanges, making it impossible to exchange the coin. They also claimed that the company does not have any registered offices.

Even the Morris Coin ICO website has no information about team members or developers, nor does it give any insight into what the project is about. Nishad, however, claimed that Morris Coin was operating in compliance with the law. 

The police plan to reach out to investors in Morris Coin to record statements and further investigate the case.

Cointelegraph tried reaching out to Long Rich Technologies and Morris Coin but received no immediate response.



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New York authorizes first Yen stablecoin operator in the US

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New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.