(a)The Department may take an enforcement action against a covered person or any person otherwise subject to this Act in any of the following instances:
(1)The covered person or person violates this Act, a rule adopted or order issued under this Act, or a State or federal law or regulation that applies to digital asset business activity of the violator with or on behalf of a resident.
(2)The covered person or person does not cooperate with an examination or investigation by the Department, fails to pay a fee, or fails to submit a report or documentation.
(3)The covered person or person, in the conduct of its digital asset business activity with or on behalf of a resident, has engaged, is engaging, or is about to engage in any of the following:
(A)An unsafe, unsound, or unlawful act or
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(a) The Department may take an enforcement action against a covered person or any person otherwise subject to this Act in any of the following instances: (1) The covered person or person violates this Act, a rule adopted or order issued under this Act, or a State or federal law or regulation that applies to digital asset business activity of the violator with or on behalf of a resident. (2) The covered person or person does not cooperate with an examination or investigation by the Department, fails to pay a fee, or fails to submit a report or documentation. (3) The covered person or person, in the conduct of its digital asset business activity with or on behalf of a resident, has engaged, is engaging, or is about to engage in any of the following: (A) An unsafe, unsound, or unlawful act or practice. (B) An unfair, deceptive, or abusive act or practice. (C) Fraud, misrepresentation, deceit, or negligence. (D) Misappropriation of fiat currency, a digital asset, or other value. (4) An agency of the United States or another state takes an action against the covered person or person that would constitute an enforcement action if the Department had taken the action. (5) The covered person or person is convicted of a crime related to its digital asset business activity with or on behalf of a resident or involving fraud or felonious activity that, as determined by the Department, makes the covered person or person unsuitable to engage in digital asset business activity. (6) Any of the following occurs: (A) The covered person or person becomes insolvent. (B) The covered person or person makes a general assignment for the benefit of its creditors. (C) The covered person or person becomes the debtor, alleged debtor, respondent, or person in a similar capacity in a case or other proceeding under any bankruptcy, reorganization, arrangement, readjustment, insolvency, receivership, dissolution, liquidation, or similar law, and does not obtain from the court, within a reasonable time, confirmation of a plan or dismissal of the case or proceeding. (D) The covered person or person applies for, or permits the appointment of, a receiver, trustee, or other agent of a court for itself or for a substantial part of its assets. (7) The covered person or person makes a misrepresentation to the Department. (b) If the Secretary finds, as the result of examination, investigation, or review of reports submitted by a registrant, that the business and affairs of a registrant are not being conducted in accordance with this Act, the Secretary may notify the registrant of the correction necessary. If a registrant fails to correct such violations, the Secretary may issue an order requiring immediate correction and compliance with this Act and may specify a reasonable date for performance.