Karen Tyler, the securities commissioner of the state of North Dakota, claimed that Union Bank Payment Coin engaged in promotion of illegal securities, which potentially had a fraudulent nature, using an ICO model. This allegation was supported by the results of an inquiry performed by the ICO Task Force of the Securities Department of North Dakota, which had the objective of identification of token sales and various digital currency-related investments, which constitute a threat to financiers in the state.
According to Tyler, the Union Bank Payment Coin is trying to pretend to be an initiative of Union Bank AG from Liechtenstein that previously in the year revealed its intentions to issue its personal security tokens and a stablecoin currency linked to the Swiss Franc.
Nevertheless, the two entities are far from being the same, because Union Bank AG is licensed and compliant with the financial policymaker of Liechtenstein, while the Union Bank Payment Coin seems to be a Russian entity, with the web protocol address of the web page located in Russian Federation.
Additionally, Union Bank AG, on its web page, cautions of the likelihood of financiers becoming deceived by fraudsters. Also the banking institution cautions that it did not establish web pages neither for purposes of registration nor for contributions and that any stakeholders are to directly reach out to the official representatives of the bank.