{"id":10307,"date":"2021-07-31T19:54:05","date_gmt":"2021-07-31T19:54:05","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/kentucky-regulators-crack-down-on-blockfi-interest-bearing-accounts\/"},"modified":"2021-07-31T19:54:05","modified_gmt":"2021-07-31T19:54:05","slug":"kentucky-regulators-crack-down-on-blockfi-interest-bearing-accounts","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/kentucky-regulators-crack-down-on-blockfi-interest-bearing-accounts\/","title":{"rendered":"Kentucky Regulators Crack Down on Blockfi Interest-Bearing Accounts"},"content":{"rendered":"

The crypto lender Blockfi is now dealing with regulators from five states as Kentucky has joined the fray against the firm\u2019s Blockfi Interest Accounts (BIAs). On July 30, Blockfi shared a statement on Twitter that explained the Kentucky Department of Financial Institutions (DFI) has sent the company an order that aims to ban new BIA accounts.<\/strong><\/p>\n

Blockfi Now Has Problems With Regulators From 5 States<\/h2>\n

The New York City-based cryptocurrency finance company Blockfi<\/a> was founded in 2017 by co-founders Zac Prince and Lori Marquez. The firm is a cryptocurrency lending firm that offers interest-bearing accounts called \u201cBIAs\u201d and also provides customers with a cryptocurrency-denominated credit card. Since January 2018, the company has allowed lending services that leverage crypto collateral.<\/p>\n

Bitcoin.com News reported<\/a> on Blockfi\u2019s initial issues with New Jersey regulators which was followed by problems with Texas, Alabama<\/a>, and Vermont<\/a>. The regulators from all of the states take issue with the BIA products and statements indicate officials believe they might be unregistered securities.<\/p>\n

Following the four states that sent notices to Blockfi, the Kentucky Department of Financial Institutions (DFI) sent the company an order<\/a>, according to Blockfi\u2019s official Twitter account.<\/p>\n

\u201cFriday afternoon we received an order from the Division of Securities of the Kentucky Department of Financial Institutions regarding the Blockfi Interest Account (BIA) operations in the state of Kentucky,\u201d Blockfi\u2019s message notes. The crypto lender\u2019s message adds:<\/p>\n

The order prohibits Blockfi from soliciting or offering ant securities in Kentucky. Blockfi firmly believes that the BIA is lawful and appropriate for crypto market participants. But in light of the order, Blockfi will stop accepting new BIA clients residing in KY immediately.<\/p>\n

<\/p>\n

Much like the other four states, Blockfi cannot allow individuals to create new BIAs until the issues with regulators are solved. So far, no other crypto companies have been targeted for offering interest via crypto accounts. Blockfi\u2019s statement on Friday further adds that current BIA customers in Kentucky were not affected and like the statements it made prior, Blockfi says it is in discussions with U.S. regulators.<\/p>\n

\u201cWe remain steadfast in our commitment to protect consumers\u2019 rights to earn interest on their crypto assets,\u201d Blockfi\u2019s message concludes.<\/p>\n

What do you think about the issues Blockfi has with Kentucky and the four other states? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, Alabama, BIA, Bias, Blockfi, Blockfi accounts, Crypto, Crypto lender, Cryptocurrency, Interest Bearing Accounts, Kentucky, New Jersey, Regulators, Securities, Texas, unregistered securities, Vermont<\/p>\n","protected":false},"excerpt":{"rendered":"

The crypto lender Blockfi is now dealing with regulators from five states as Kentucky has joined the fray against the firm\u2019s Blockfi Interest Accounts (BIAs). On July 30, Blockfi shared a statement on Twitter that explained the Kentucky Department of Financial Institutions (DFI) has sent the company an order that aims to ban new BIA…<\/p>\n","protected":false},"author":0,"featured_media":10308,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-10307","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10307"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=10307"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10307\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/10308"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=10307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=10307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=10307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}