On July 28, Zac Prince, the CEO of the crypto finance company Blockfi, explained that the company has been “engaging in a fruitful dialogue” with US regulators. Prince further stated that the New Jersey Securities Bureau has extended the state’s previous order to September 2. At the same time, the company also had problems with the Vermont Department of Financial Regulation (DFR) because the state’s DFR commissioner issued an order against the company’s Blockfi interest account. (bias).
Garden State Regulators Gives Blockfi Extension, Vermont Issues Regulatory Complaint
Four states have filed objections to Blockfi’s BIA, and regulators have recently notified the company. Zach Prince, co-founder of Blockfi disclose On July 19, the company had a problem with the New Jersey regulatory agency.New Jersey notice The complaint against Blockfi’s crypto BIA cited “sale of unregistered securities.”
Then on July 22, the regulator Texas and Alabama A notice about BIA was also sent to the company. Blockfi now has problems in the fourth state because the Vermont Department of Financial Supervision (DFR) has also issued a notice to Blockfi.
document Financial reporter found Danny Nelson On July 27th, Vermont DFR Commissioner Michael S. Pieciak issued a 30-day trade fair reason order. Blockfi must convince the state regulator of the notification details that its BIA is not a security.
The notice stated: “BIA is not registered or approved for sale in Vermont, nor is it eligible for any registration exemption under the Securities Act.” Pieciak’s order added that the company “is not registered with the Vermont Department of Financial Supervision to issue in Vermont. Or sell securities”.
Blockfi CEO: The company is having a fruitful dialogue with regulators
The day after Pieciak notified Blockfi, Prince spoke to the public through a company blog post. Prince wrote: “We have been engaged in a fruitful dialogue with regulators to protect your interests and expand everyone’s access to innovative financial solutions.” “This is our commitment to you-for You fight for the right to earn interest from crypto assets,” a Blockfi executive added.
Prince also gave an update on the New Jersey case and said that the New Jersey Securities Bureau extended the deadline. The prince said:
After these discussions, one update I would like to share with you is that the New Jersey Board of Securities (NJ BOS) has further postponed the effective date of its previous order to Thursday, September 2, 2021.
The founder of Blockfi stated that although the order prevents the creation of a new BIA in New Jersey, it will not affect other products and existing customers. “Please rest assured that your access to Blockfi has not been affected at all,” Prince emphasized. Blockfi co-founder Flori Marquez also shared Prince’s post on Twitter and said that the company is cooperating with financial regulators.
“At Blockfi, we focus on protecting consumers’ rights to earn interest through cryptocurrency,” Marquez said. “Last week, we had a constructive discussion with regulators on why BIA is suitable for crypto market participants.”
What do you think of Blockfi’s recent updates and the company’s problems in Vermont? Please tell us your thoughts on this topic in the comments section below.
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