BlockFi Ordered to Stop Accepting New Customers

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The New Jersey Bureau of Securities raised an issue against BlockFi by targeting their lending & interest plan. They ordered to halt their services for New Customers from 22 July.

BlockFi is a digital currency based platform which provides better opportunities for those people who want to get interest for their crypto holding. And also they offer loans to crypto users. Recently an issue has been raised by the securities of the New Jersey Bureau to stop their services for new customers.

Related: 7 Best Cryptocurrency Lending Platforms to Earn Money

According to the Forbes news report, the New Jersey Office of the Attorney General cited a draft to order the Blockfi platform to cease & Desist their services. 

The Securities Authority pointed out the BlockFi Interest Account (BIA)  system and said that it is not relevant according to their rules, regulations & guidelines. 

Blockfi main office headquarter is situated in Jersey where they offer 8.5% interest for crypto holding to the users. 

According to regulators this lending system is violating their guidelines, so it is necessary to halt their services. Regulators stated: 

“Our rules are simple: if you sell securities in New Jersey, you need to comply with New Jersey’s securities laws. No one gets a free pass simply because they’re operating in the fast-evolving cryptocurrency market. Our Bureau of Securities will be monitoring this issue closely as we work to protect investors.” – Forbes cited Acting Attorney General Andrew Bruck.

Zac Prince, the CEO of BlockFi confirmed that they received notice order from the jersey regulators to stop & desist new users. While the order is in effect from 22 July. They also did promise that their services will continuously work for their existing customers. And also they will further talk with regulators on this matter. Because BlockFi does not agree with the decision of regulators. According to the CEO of BlockFi, their lending system is not security, so clearly they are not violating any law or guidelines.

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