New Jersey sends cease & desist message to BlockFi

2021-7-22 13:32

BlockFi’s CEO Zac Prince confirmed earlier this week that the firm had received a cease and desist order from the New Jersey Bureau of Securities

According to BlockFi chief executive Zac Prince, the New Jersey Bureau of Securities (NJBoS) has demanded that the crypto lending firm stop offering interest-bearing crypto accounts to new customers. The New Jersey-based company has been offering the BlockFi Interest Account (BIA) since 2019. Prince has since revealed that the order did not affect any existing clients, and as such, all aspects of the BlockFi portfolio would remain accessible to those clients.

“We remain fully operational for our existing clients in New Jersey. All aspects of the BlockFi platform continue to be accessible to our clients in New Jersey. The order calls for BlockFi to stop accepting new BIA clients residing in New Jersey beginning July 22, 2021,” Prince disclosed.

He also reaffirmed that BlockFi remained committed to working with authorities to discuss their available products, which he labelled as being compliant and appropriate. He went ahead to clarify that the NJBoS’s assumption that BIA was a security was inaccurate, insisting that the company will continue protecting clients’ interests.

New Jersey acting Attorney General Andrew Bruck explained that the order was a result of selling unregistered securities, which violates New Jersey’s securities laws. He reiterated that the state had been keenly monitoring the crypto sector to ensure compliance with investor law, cautioning that no party was exempt from the law.

“No one gets a free pass simply because they’re operating in the fast-evolving cryptocurrency market.”

Bruck also noted that BlockFi did not offer the said crypto interest accounts in other states such as New York, which he suggested might be due to the laws in place in those states. Following the announcement, Kaitlin Caruso, the acting director in the Division of Consumer Affairs, observed that DeFi products carried significant risk levels even higher than the risk resulting from crypto’s volatility. She warned that even though institutions such as BlockFi seemed to match traditional financial platforms, they left investors exposed and vulnerable.

New Jersey’s order did not sit well with users, who insist that BlockFi did not offer securities via their interest-bearing accounts. Some argued that New Jersey’s decision might have been one to protect the banks. After New Jersey rocked the BlockFi boat, the Alabama Securities Commission followed suit. Yesterday, the commission ordered that BlockFi ‘shows cause’, or else risk a ban of operation for offering unregistered securities.

The post New Jersey sends cease & desist message to BlockFi appeared first on Coin Journal.

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blockfi new message sends desist cease jersey

blockfi new → Результатов: 60


Регулятор запретил BlockFi открывать новые счета резидентам штата Нью-Джерси

Бюро ценных бумаг Нью-Джерси запретило криптолендинговой платформе BlockFi открывать новые накопительные счета BIA резидентам штата. Об этом рассказал глава компании Зак Принс. Late Monday evening BlockFi received an order from the New Jersey Bureau of Securities regarding BlockFi Interest Account (BIA) operations in the State of New Jersey.

2021-7-20 10:45


Fidelity Digital to Custody Bitcoin as Collateral for BlockFi to Issue USD Loans to Institutional Clients

Fidelity Digital Assets will now allow its institutional customers to use their Bitcoin as collateral against cash loans. This new offering has been introduced in partnership with blockchain startup BlockFi, which announced on Wednesday that it is “thrilled” to support “Fidelity’s entrance into the digital asset financing space.

2020-12-11 23:10


Стартап BlockFi удвоил месячную прибыль на фоне глобального кризиса

Работающая на рынке криптовалютного кредитования компания BlockFi объявила о привлечении инвестиций от управляющего активами Three Arrows Capital. Последний был ее клиентом в течение года. 📣 We are excited to welcome Three Arrows Capital as a new strategic investor.

2020-4-11 14:38


BlockFi Adds New On-Ramp, Allowing Customers to Use Cash Deposits to Buy BTC

The cryptocurrency-focused financial company BlockFi said it now has a newly enabled feature that allows its customers to buy Bitcoin (BTC) with cash. Before, the Jersey City-based crypto lender, only allowed users only to transfer their digital assets [BTC, ETH, LTC, and stablecoins USDC, GUSD] onto the platform from wallets and exchanges. But after today's […]

2020-3-10 21:18


Crypto Trading Alliance ADAM Recruits New Members And Issues Its Code of Conduct

A new crypto trading alliance known as the Association for Digital Asset Markets (ADAM) has just released its code of conduct. The alliance has also accepted some new members recently, too. This association, which includes prominent companies such as Genesis Global Trading, Hudson River Trading, and Galaxy Digital, now has Anchorage, CMT Digital, BlockFi, BitGo […]

2019-11-13 05:07


A New Bitcoin ETF Hopeful is Many Moons Away, But You Don’t Have to Wait for Bitcoin Interest Accounts Now

The dream of cryptocurrencies replacing bank just got a step closer. This Tuesday BlockFi has launched a crypto deposit account that provides compound interest. The BlockFi Interest Account (BIA) is now live and gives customers an annual interest rate of 6 percent, paid on a monthly basis in cryptocurrency. That monthly interest is then compounded […]

2019-3-7 18:19


Фото:

Blockfi Launches Interest Bearing Savings Accounts for Cryptocurrencies

On March 4, cryptocurrency-backed USD lending platform Blockfi announced the launch of a new savings program called the Blockfi Interest Account (BIA). Having started as a private beta service, BIAs are now available to the public who can store bitcoin core (BTC) and ethereum (ETH) and receive 6 percent annual interest, paid monthly in cryptocurrency.

2019-3-6 23:40