I don't get it. The bitcoin issue shouldn't matter unless the investors are expecting to get paid in bitcoin, and the company converts the contributed coin to an equivalent amount in USD on receipt to determine ownership. Assumably, the exploration business itself is run with fiat currency.
Topic: Texas tells small Oil company to Stop/Not Accept Bitcoin (Read 1120 times)
Found the story while looking for other things on google; don't know if it has been posted if so will be removed.
http://www.upstreamonline.com/live/article1354916.ece
Regulators in the US state of Texas have issued a cease and desist order to a small oil and gas company after the minnow advertised it would take exploration investments in Bitcoin, the virtual currency.
Balanced Energy and president Kirk Johnson advertised as the first company in the industry to take the digital payment method, the Texas State Securities board claimed in an emergency order on Tuesday.
A pitch at the Texas Bitcoin Conference advertised stakes in the South Runway Prospect, located in Runnels County, Texas, and the North Guitar Prospect, also located in Runnels County, Texas.
The regulator alleges that Balanced Energy has fallen short of disclosing the risks of using the currency and that associated with oil and gas exploration.
A spokesman with the board, however, said the order aimed to address disclosure issues by the specific company, not pass judgment per se on the use of Bitcoin for oil investment.
Reached by phone, company president Johnson told Upstream the company was consulting with its attorneys and preparing a response to the order.
Bitcoin, which describes itself as an "open source", "peer-to-peer" payment technology, has been lauded as innovative by some but criticised by others for its lack of oversight from a central bank or financial regulators.
Balanced Energy is based out of the Dallas-Forth Worth suburb of Southlake, Texas and lists about a dozen current or past prospects in Runnels and Coleman counties, according to its website.
The company is " telling investors they can purchase a 6.25% working interest in either of two exploration projects in Runnels County, which is between San Angelo and Abilene, for about $31,000," the securities board wrote.
"That working interest may generate a first-year return of between 76% and 118%, depending on the price of oil, according to Balanced Energy’s investment offering documents.
The Texas regulator said the company has not made clear the "risks inherent to the use of Bitcoin and the risk that fluctuation in the price of the digital currency may affect business operations."
In the Balanced Energy case, the state claims the company has not registered the working interests with the stakes with the securities board, which is not required when selling to accredited investors.
But Balanced Energy has not taken steps to accredit its investors, the SSB claims, with executive Johnson telling regulators that "we're not the paperwork police."
http://www.upstreamonline.com/live/article1354916.ece
Regulators in the US state of Texas have issued a cease and desist order to a small oil and gas company after the minnow advertised it would take exploration investments in Bitcoin, the virtual currency.
Balanced Energy and president Kirk Johnson advertised as the first company in the industry to take the digital payment method, the Texas State Securities board claimed in an emergency order on Tuesday.
A pitch at the Texas Bitcoin Conference advertised stakes in the South Runway Prospect, located in Runnels County, Texas, and the North Guitar Prospect, also located in Runnels County, Texas.
The regulator alleges that Balanced Energy has fallen short of disclosing the risks of using the currency and that associated with oil and gas exploration.
A spokesman with the board, however, said the order aimed to address disclosure issues by the specific company, not pass judgment per se on the use of Bitcoin for oil investment.
Reached by phone, company president Johnson told Upstream the company was consulting with its attorneys and preparing a response to the order.
Bitcoin, which describes itself as an "open source", "peer-to-peer" payment technology, has been lauded as innovative by some but criticised by others for its lack of oversight from a central bank or financial regulators.
Balanced Energy is based out of the Dallas-Forth Worth suburb of Southlake, Texas and lists about a dozen current or past prospects in Runnels and Coleman counties, according to its website.
The company is " telling investors they can purchase a 6.25% working interest in either of two exploration projects in Runnels County, which is between San Angelo and Abilene, for about $31,000," the securities board wrote.
"That working interest may generate a first-year return of between 76% and 118%, depending on the price of oil, according to Balanced Energy’s investment offering documents.
The Texas regulator said the company has not made clear the "risks inherent to the use of Bitcoin and the risk that fluctuation in the price of the digital currency may affect business operations."
In the Balanced Energy case, the state claims the company has not registered the working interests with the stakes with the securities board, which is not required when selling to accredited investors.
But Balanced Energy has not taken steps to accredit its investors, the SSB claims, with executive Johnson telling regulators that "we're not the paperwork police."
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