On July 19, Zac Prince, the CEO of Blockfi, an encrypted financial services company, told the public that the New Jersey Securities Bureau had informed the company that “starting from July 22, 2021, it will stop accepting residence in New Jersey. New BIA customers”. New Jersey’s Acting Attorney General Andrew Bruck also tweeted on this issue, stating that “we have been closely monitoring activities involving cryptocurrencies to ensure compliance.”
New Jersey Securities Bureau cracks down on cryptocurrencies
- On Monday, Michael del Castillo, a special contributor to Forbes, discovered an unpublished draft cessation order. The order has been sent to Blockfi, an encrypted financial services company, which provides users with interest-bearing encrypted accounts and encrypted debit cards. On the same day, Blockfi CEO Zac Prince (Zac Prince) confirmed that the stop order issued by the New Jersey Securities Bureau (NJBoS) was true.
- “On Monday night Blockfi received an order from the New Jersey Securities Bureau regarding the operation of the Blockfi Interest Account (BIA) in New Jersey,” Prince Tweet on Monday. “We are still fully operating for our existing customers in New Jersey. Our customers in New Jersey continue to have access to all aspects of the Blockfi platform. The order requires Blockfi to stop accepting new BIA customers living in New Jersey from July 22, 2021. “Prince added.
- The next day, New Jersey Acting Attorney General Andrew Brook also posted a tweet about the situation and shared a press release issued by the Garden State Financial Authority. “We have been closely monitoring activities involving cryptocurrencies to comply with New Jersey’s investor protection laws. Our Securities Bureau ordered a New Jersey-based company, Blockfi, to stop providing interest-bearing accounts,” Brooks Say Tuesday.
- Many cryptocurrency supporters were dissatisfied with New Jersey’s behavior and responded to Brooke’s tweet. “Any cryptocurrency offered on Blockfi does not represent the ownership of the company or anything else,” said one person comment“They are just commodities. This is definitely the meaning of 0, so that it is ridiculous. NJBoS did its homework before doing this or does it not like cryptocurrency?”
- A press release issued by the New Jersey Attorney General’s Office explained that as the new financial services business model is under scrutiny, the entity is stepping up to “protect investors.” “Our rules are simple: if you sell securities in New Jersey, you need to comply with New Jersey’s securities laws,” said Acting Attorney General Brooke. “No one gets a free pass just because they are operating in the fast-growing cryptocurrency market. As we work hard to protect investors, our securities bureau will pay close attention to this issue.”
- “The cryptocurrency investment products offered and sold on decentralized financial platforms carry significant risks, even exceeding the risks associated with cryptocurrency volatility,” emphasized Kaitlin Caruso, acting director of the New Jersey Department of Consumer Affairs. “Platforms like Blockfi may reflect the traditional financial structure we know and trust, but in reality, they can make investors extremely vulnerable.”
What do you think of New Jersey’s actions against Blockfi? Please tell us your thoughts on this topic in the comments section below.
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