Just two weeks after being fined by Iowa’s regulators for offering and selling unregistered securities, crypto lending platform BlockFi announced on June 28 thait has received a Money Services License in the state.
The Iowan license will allow the crypto lender to receive money and sell payment instruments in the state. BlockFi on Twitter stated it will begin by allowing Iowan residents to trade stablecoins.
We’re excited to announce that we’ve received our Money Services License in Iowa.
Iowa residents can now trade stablecoins on our platform and instantly transfer funds via ACH. pic.twitter.com/sNEFIlCeWY
— BlockFi (@BlockFi) June 28, 2022
Previously on June 14 the Iowa Insurance Division (IID) responsible for securities sales in the state fined BlockFi over $943,000 for violations of the state’s Securities Act. IID alleged BlockFi had “offered and sold securities in Iowa that were not registered or permitted for sale in Iowa” along with failing to register as a broker-dealer or agent.
The fine was part of a larger penalty brought by the United States Securities and Exchange Commission (SEC) in February for not registering an offering of high-yield interest accounts that the commission deemed to be securities.
The fine was one of the largest penalties ever imposed by a federal regulator on a crypto business. BlockFi was hit with $100 million in settlements, with half paid to the SEC and the other half to 32 states which brought forward similar charges.
Shortly after, BlockFi said it intended to register with the SEC for a crypto interest-bearing security for its U.S. customers to replace its current interest accounts offering.
The new license is a glimmer of good news for BlockFi which has struggled along with other blockchain and crypto companies in the worsening market conditions and falling crypto prices.
On June 16, BlockFi was among the lending firms forced to liquidate some of the positions from venture firm Three Arrow Capital (3AC) with the latter unable to meet a margin call on its Bitcoin (BTC) borrowings.
Celsius, a rival crypto lending platform, paused customer withdrawals on June 13 attributing the decision to the market conditions. Other reports followed that the company was facing liquidity issues and would soon be facing insolvency.
Related: Community reacts after SEC’s Gensler affirms BTC’s commodity status
These conditions have also seen a round of layoffs from blockchain and crypto companies, with BlockFi CEO Zac Prince…
Click Here to Read the Full Original Article at Cointelegraph.com News…
