Digest Submission | Bank.org - New York Shelf Charter

Gunnar Larson g at xny.io
Thu May 20 14:47:15 PDT 2021

Dear Cypherpunks:

I would like to submit the "Bank.org - NEW YORK Shelf Charter" memo for
digest consideration.

   - Below the signature of this message, please find the the memo's text
   - You may access a link to the memo here:
   - The memo was originally published on March 14:

Please let me know if the memo is something you think would be suitable for
a Digest submission.

Sending you warm regards.

Thank you,

*Gunnar Larson - xNY.io <http://www.xNY.io> | Bank.org <http://Bank.org>*
- Digital Currency
- Entrepreneurship and Innovation (ip)

G at xNY.io
New York, New York 10001


March 13, 2021


New York State Department of Financial Services
Honorable Superintendent Ms. Linda Lacewell
Innovation at dfs.ny.gov

Re: Bank.org <http://www.bank.org> Shelf Charter

Dear Madam Superintendent:

xNY.io <https://xny.io/> and Bank.org <http://www.bank.org/> must innovate
beyond market manipulation and cross-border computer crimes that present
serious risks, both to consumers and to the safety and soundness of
financial services institutions. As the cryptocurrency markets continue to
evolve, the New York Department of Financial Services (NY-DFS) has directed
virtual currency companies like xNY.io <https://xny.io/> to take the
necessary steps to guard against fraud and to be extra vigilant about

Today’s memo aims to innovate the market and can only evolve with your
strong regulatory supervision. xNY.io <https://xny.io/>’s recent Tech
Sprint Submission
“A Design Mechanism to Report Digital Regulatory Computer Crimes,” was
filed with your esteemed office on March 2, 2021. xNY.io <https://xny.io/>
has discussed the matter of marketplace manipulation with the NY-DFS
innovation team. We have both agreed marketplace manipulation is an issue
and specifically affects xNY.io <https://xny.io/> and Bank.org’
<http://www.bank.org/>s bottom line.

Our mutual moods seemed aligned on innovation. However, there is an air of

Madam Superintendent, recently I published an Open Letter to Bloomberg on
Modern BitLicense Logic
Some BitLicensees candidly offer feedback regarding New York State borders.
There seems to be some confusion concerning the BitLicense’s jurisdictional
reach and given that xNY.io <https://xny.io/> and Bank.org
<http://www.bank.org/>’s business falls under DFS surveillance and the USA
PATRIOT Act, Congress amended the definition of “protected computer” to
make clear that this term includes computers outside of the United States
so long as they affect “interstate or foreign commerce or communication of
the United States.” 18 U.S.C. § 1030(e)(2)(B) (2001).

This change addresses situations where an attacker within the United States
attacks a computer system located abroad and situations in which
individuals in foreign countries route communications through the United
States as they hack from one foreign country to another. Both situations
can therefore be violations of section 1030. As such, it would seem that
BitLicensees are subject to New York Law while operating outside of New
York (including Human Rights Law <https://dhr.ny.gov/law>).

The utility of virtual currency is cross-border. New York is not a walled
garden for bad actors to camp while profiting off of the back of xNY.io
<https://xny.io/> and Bank.org
wrongfully across global markets. The textbook definition of marketplace
manipulation has been discussed with the patient Ms. Seema Shah, a DFS
innovation leader whom we look forward to consulting with over days and
weeks to come.

Meanwhile, it is our observation that the Bitcoin Blockchain has been
targeted by New York firms licenced by your office, such as Ripple and
Goldman Sachs. In Africa, we experienced how these various actions affected
the integrity of our global enterprise.


   The Supreme Court placed emphasis on the central role of deception to
   the concept of fraud—“the words ‘to defraud’ . . . primarily mean to cheat,
   . . . usually signify the deprivation of something of value by trick,
   deceit, chicane, or overreaching, and . . . do not extend to theft by
   violence, or to robbery or burglary.” Id. at 627 (construing Hammerschmidt
   v. United States. 265 U.S. 182 (1924)).

   xNY.io <https://xny.io/>- CryptoBank is painfully aware of a “Crypto
   Bank” loophole between New York, Europe and Africa. We submitted a
   for the Superintendent's review on the matter
   of this loophole as it relates to Human Rights from our graduate research
   as a New Yorker traveling abroad.

New York banks are not immune to Civil and Human Rights abroad,
specifically if these violations are using computers against other New
Yorkers’ enterprises (aka the aforementioned xNY.io - CryptoBank loophole

xNY.io <https://xny.io/> and Bank.org <http://www.bank.org/> followed DFS


   Immediately upon discovering any wrongdoing, a virtual currency entity
   must submit to DFS a report stating all pertinent details known at the time
   of the report.  Virtual currency entities must also submit to DFS, as soon
   as practicable, a further report or reports of any material developments
   relating to the originally reported events, along with (we have been
   actively reporting the matter to DFS, only greeted with silence and Tech
   Sprint denial…)

   A statement of the actions taken or proposed to be taken with respect to
   such developments, and

   A statement of changes, if any, in the virtual currency entity’s
   operations that have been put in place or are planned in order to avoid
   repetition of being affected by similar circumstances.

Specific to points two and three above: This memorandum is to properly
disclose xNY.io’s agreement and purchase of Bank.org <http://www.bank.org>
with further intent to seek Shelf Charter approval from your office.

Bank.org <http://www.bank.org/> - Shelf Charter

Poverty has no borders, and neither does excellence. xNY.io’s campaign
for “Modern
BitLicense Logic
will forever be grateful for the borders of New York State. Meanwhile,
Bank.org’s Shelf Charter is a global concern and DFS should understand our
modern, logical international intentions:


   The purpose of the Department of Financial Services Shelf Charter is to
   enable parties that currently do not have a bank charter to participate in
   bidding for failed or failing banks that are being sold by the FDIC.

   Prior to the preparation of a formal application, an outline of the
   proposed business plan should be submitted to the Department of Financial
   Services. At minimum, the outline should include the rationale for
   organizing the proposed institution.

Bank fraud is a serious problem for such a developed country as the United
States, whose bank regulators have drawn attention to the increase of these
crimes. Having discovered that an unregulated virtual currency sphere (such
as in Africa, or other developing markets) is very popular among virtual
currency fraudsters
the New York State Department of Financial Services concluded that this
kind of regulatory fraud was threatening US national security.

xNY.io <https://xny.io/> and Bank.org <http://www.bank.org/> are
interdependent solutions of cutting edge innovation, and we seek to begin
dialogue with your office for hopeful 2021 Shelf Carter approval. Our goal
was to work through Market Manipulation during the Tech Sprint, however, we
were denied participation.


   The basic problem with New York Bank Innovation is monopoly power
   and policy should address that issue directly. If the problem is a lack of
   transparency and accountability in government activities, one should find
   ways to open up the public sector to oversight from outsiders. If the
   problem is an opaque and confusing regulatory structure, rules should be
   simplified and clarified.

   As elegantly as possible, xNY.io <http://xny.io/> and Bank.org must
   strive to innovate beyond a Laissez-faire attitude concerning the systems
   and processes in which transactions between our peers are now free from
   (or, almost free from) any form of economic/regulatory interventions such
   as the BitLicense lacking cross-border regulatory logic concern.

   Madam Superintendent, bank innovation from the great state of New York
   touches people on all continents on Earth, and it seems that if given the
   opportunity, DFS would want to solve any market manipulation matters
   through technology.

      xNY.io <http://xny.io/> underscores the need for reporting innovation
      specific to virtual currency marketplace manipulation and/or other crypto
      cross-border regulatory arbitrage frameworks directed out of New York,
      affecting over 1 billion people.

         Bank of New York’s (BNY Mellon) controversies and legal issues
         should not be confused with xNY.io <https://xny.io/>’s future, or
         even in competition with our marketplace entrance.

         Libra/Diem/Robinhood/XRP all fail to match xNY.io <https://xny.io/>
         and Bank.org <http://www.bank.org/> global innovation, considering
         the firms’ historical relationships with computer crimes

      xNY.io <https://xny.io/> intends to offer several products and
      services, including: a tokenized, programmable virtual currencies
      called xNY, xBB and xLG; Bank.org’s hopeful charter will provide
      global custody services for assets; API-based online banking
services where
      customer deposits must be 100% backed by reserves; and prime services for
      digital assets.

xNY.io <https://xny.io/> and Bank.org <http://www.bank.org/> will operate
under the themes of a Universal Declaration on Virtual Currency and Human

Innovating rather than litigating, we hope to begin immediate discussion on
Bank.org <http://www.bank.org/>’s earning your Shelf Charter approval as
the most sophisticated solution to innovate and dawn a new legacy of the
modern version of the World’s Best Bank. Personally, I am concerned that
DFS has potentially ignored xNY.io <https://xny.io/>’s interests ensured
through interpretations of specific provisions in the existing national and
supra-national legal framework (civil law, securities law, bankruptcy law,
international human rights law and civil rights law).

As Bank.org <http://www.bank.org/> begins to be re-developed for launch as
an international bank, Madam Superintendent it is our business to now lead
New York in the global virtual currency industry with xNY.io
<https://xny.io/> and to further clarify the rights of the public and
obligations of Bank.org’s future customers across global economies and
corresponding currencies.

xNY.io <https://xny.io/> and Bank.org <http://www.bank.org/> choose to
register corresponding operations out of New York State rather than
Delaware or elsewhere out of passion for this great State and desire to
contribute meaningfully to State tax revenue(s). This can be achieved
through subtle action on “conditional approvals” that are well earned from
DFS review, demonstrating historic cross border innovation and a new, pure
DFS association.

As a matter of New York Civil and Human Rights
regulation we hope you share our enthusiasm for xNY.io and Bank.org
pioneering and preserving a technology-neutral, principle-based,
non-discriminatory framework for the next generation of modern New York
virtual currency public policy, naturally supporting innovation within the
limits imposed by overriding international public interests.


   Kindly note that we have a pending Freedom of Information Law (FOIL)
   request due response related to xNY.io <https://xny.io/>’s Tech Sprint
   submission covering COMPUTER CRIMES and the BitLicense.

      It was upsetting to be denied participation due to other firms’
      felony association(s) and wrongdoing to settle criminal and civil
      investigations with the Justice Department.

   Bank.org’s <http://www.bank.org/> Shelf Charter helps push the arch of
   innovation forward as an example of best practices, unlike Wells Fargo who
   was admitted to the Tech Sprint at the denial and will concerning xNY.io
   <https://xny.io/>’s purity.

      The two week sprint, from our clearly communicated perspective was to
      foster community building and relationships with our peers, and
denied for
      unjust cause.

   Madam Superintendent, I am sensitive about the Tech Sprint and treatment
   by DFS thinking millions of our customers globally…

      I can wear these shoes as a ethnic minority scholar living in
      Chelsea, Manhattan, 2020-2021 affording being grateful for New
York State’s
      Pandemic Unemployment Insurance and SNAP benefits.

      DFS surveillance must provide the Superintendent’s office outline of
      clear examples of my personal banking relationships at Wesern
Union? Young
      people around the world experience daily what I have been so fortunate to
      experience and overcome under the great leadership of the DFS

xNY.io <https://xny.io/> and Bank.org <http://www.bank.org/> innovation
intentions use our example as a matter of poverty transformed into a modern
global Banking enterprise through agile innovation (and, only possible by
partnership with your office). xNY.io and Bank.org expect to be a New York
success story, at the very least, if not one of the World’s Best Banks.

Madam Superintendent, raising capital to fund this historic, innovative
operation is of no serious concern. Rather, the key to success isDFS
approval and collaboration concerning agile innovation. The Shelf Charter’s
utility overwhelmingly fits Bank.org’s case.


   Let’s be honest with each other: All the money in the world will not
   solve anything without DFS collaboration concerning radical innovation.


For the reasons above and known generally, xNY.io and Bank.org are now
seeking DFS’ ACCELERATED review and collaboration for Shelf Charter status.
We hope you share our enthusiasm and willingness of granting 2021 Shelf
Charter approval, for all people everywhere.


We look forward to our long term innovation relationship under your
historic regulatory oversight.

Respectfully yours with anticipation,

Gunnar Larson - xNY.io <http://www.xny.io> | Bank.org

- Digital Currency
- Entrepreneurship and Innovation (ip)
G at xNY.io  +1-646-454-9107
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