Fwd: Bank.org | SHELF CHARTER (Notice of Intent)

Mon Mar 20 20:53:58 PDT 2023

Please notice the attached correspondence made to your attention.
Additionally, the memo can be reviewed here:
https://docs.google.com/document/d/1d1WU0ScurhEXwNm1YY-e2bPS6CDZK6nJt-ue0PXkWCw/edit?usp=sharing

---------- Forwarded message ---------
From: Gunnar Larson <g at xny.io>
Date: Sat, Mar 13, 2021, 2:32 PM
Subject: Bank.org | SHELF CHARTER (Notice of Intent)
To: Shah, Seema (DFS) <seema.shah at dfs.ny.gov>, <innovation at dfs.ny.gov>
Cc: dfs.sm.DfsNext <DfsNext at dfs.ny.gov>, Joshua Plant <joshua at plantpr.com>,
<VCLicenseQuestions at dfs.ny.gov>, Garvin, Sheila Y (DHR) <
Sheila.Garvin at dhr.ny.gov>, Paasewe, Siaka (DHR) <Siaka.Paasewe at dhr.ny.gov>

Honorable Madam Superintendent:

Bank.org submits notice of intent to begin preliminary conversations with
your office to earn your Shelf Charter designation approval.

   - Please notice the attached correspondence made to your attention.
   Additionally, the memo can be reviewed here:
   https://docs.google.com/document/d/1d1WU0ScurhEXwNm1YY-e2bPS6CDZK6nJt-ue0PXkWCw/edit?usp=sharing

We will contact Ms. Seema Shah's office on Monday 15 March with hopes of
scheduling Bank.org's first series of discussions on the
Superintendent's Shelf Charter consideration.

With great appreciation,

Gunnar Larson
-- 
*Gunnar Larson - xNY.io <http://www.xNY.io> | Bank.org <http://Bank.org>*
MSc
<https://www.unic.ac.cy/blockchain/msc-digital-currency/?utm_source=Google&utm_medium=Search&utm_campaign=MSc-Digital-Currency-North-America&utm_term=blockchain%20unic&gclid=Cj0KCQiAyJOBBhDCARIsAJG2h5ctwwMz0MRbVSk-LaYD-GMU5UgDSw7ynxbGr_a7SkaFAZzJc1-pzxEaAi4NEALw_wcB>
- Digital Currency
MBA
<https://www.unic.ac.cy/business-administration-entrepreneurship-and-innovation-mba-1-5-years-or-3-semesters/>
- Entrepreneurship and Innovation (ip)

G at xNY.io
+1-646-454-9107
New York, New York 10001

March 25, 2021
BY ELECTRONIC MAIL

New York State Department of Financial Services
Honorable Superintendent Ms. Linda Lacewell
Re: Bank.org Shelf Charter
Dear Madam Superintendent:

xNY.io and 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 to take the necessary steps to guard against fraud and to be extra
vigilant about manipulation.
Today’s memo aims to innovate the market and can only evolve with your
strong regulatory supervision. 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 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
and Bank.org’s bottom line.
Our mutual moods seemed aligned on innovation. However, there is an air of
dienfranchiemt.
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 and
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).
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 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 - CryptoBank is painfully aware of a “Crypto Bank” loophole between
New York, Europe and Africa. We submitted a Declaration 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
concern).

xNY.io and Bank.org followed DFS direction:
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 with further intent to
seek Shelf Charter approval from your office.

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 and 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 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 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 history
should not be confused with xNY.io’s future, or even in competition with
our marketplace entrance.
Libra/Diem/Robinhood/XRP all fail to match xNY.io and Bank.org global
innovation, considering the firms’ historical relationships with computer
crimes (cross-border).
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 and Bank.org will operate under the themes of a Universal
Declaration on Virtual Currency and Human Rights.
Innovating rather than litigating, we hope to begin immediate discussion on
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’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 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 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 and 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’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 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’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
Superintendent.
xNY.io and 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 | Bank.org

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