Bitcoin Price Drops Below $30,000 Amidst Growing Regulatory Scrutiny
BlockFi Receives Cease and Desist OrderThe latest crackdown effort on cryptocurrency comes in the form of a Summary Cease and Desist Order issued by the New Jersey Office of the Attorney General to BlockFi. BlockFi is a multi-billion dollar platform that offers Bitcoin financial services. The cease and desist order orders BlockFi to “stop offering interest-bearing accounts,” according to a report by Forbes. Per the Forbes report, the cease and desist order states that BlockFi has been “funding and facilitating its cryptocurrency lending and trading operations at least partly through the sale of unregistered securities in alleged violation of relevant securities laws.” A comment from Acting Attorney General Andrew J. Bruck has been included in the document. According to Bruck, those who want to sell securities in New Jersey must comply with securities laws. He added that, “Our Bureau of Securities will be monitoring this issue closely as we work to protect investors.”
BlockFi Confirms Receiving Cease and Desist Order
In a series of tweets, BlockFi CEO Zac Prince confirmed that the company has received the cease and desist order from the New Jersey Bureau of Securities pertaining to its BlockFi Interest Account (BIA) operations.
The BlockFi CEO assured that the company remains “fully operational” for its existing clients in the state.
Prince also insisted that BIA is not a security and that he therefore disagrees with the actions taken by the New Jersey Bureau of Securities.
“BlockFi is engaged in an ongoing dialogue with regulators to help them understand our products, which we believe are lawful and appropriate for crypto market participants,” he said.
Written by Isabella James