{"id":9850,"date":"2021-07-20T16:54:09","date_gmt":"2021-07-20T16:54:09","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/blockfi-ordered-to-stop-offering-interest-bearing-crypto-accounts-in-new-jersey\/"},"modified":"2021-07-20T16:54:09","modified_gmt":"2021-07-20T16:54:09","slug":"blockfi-ordered-to-stop-offering-interest-bearing-crypto-accounts-in-new-jersey","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/blockfi-ordered-to-stop-offering-interest-bearing-crypto-accounts-in-new-jersey\/","title":{"rendered":"Blockfi Ordered to Stop Offering Interest-Bearing Crypto Accounts in New Jersey"},"content":{"rendered":"

On July 19, the CEO of the crypto financial services firm Blockfi, Zac Prince, told the public that the New Jersey Bureau of Securities has told the company to \u201cstop accepting new BIA clients residing in New Jersey beginning July 22, 2021.\u201d New Jersey\u2019s acting attorney general Andrew Bruck also tweeted about the issue and said \u201cwe\u2019ve been closely monitoring activity involving cryptocurrencies for compliance.\u201d<\/strong><\/p>\n

New Jersey\u2019s Bureau of Securities Cracks Down on Crypto<\/h2>\n

On Monday, an unpublished draft of a cease and desist order was discovered<\/a> by the Forbes staff writer Michael del Castillo. The order was sent to the crypto-financial services firm Blockfi<\/a>, a company that provides users with interest-bearing crypto accounts and crypto debit cards. The same day, Blockfi\u2019s CEO Zac Prince confirmed the cease and desist order from the New Jersey Bureau of Securities (NJBoS) was real.
\n\u201cLate Monday evening Blockfi received an order from the New Jersey Bureau of Securities regarding Blockfi Interest Account (BIA) operations in the State of New Jersey,\u201d Prince tweeted<\/a> on Monday. \u201cWe remain fully operational for our existing clients in New Jersey. All aspects of the Blockfi platform continue to be accessible to our clients in New Jersey. The order calls for Blockfi to stop accepting new BIA clients residing in New Jersey beginning July 22, 2021,\u201d Prince added.
\nThe following day, New Jersey\u2019s acting attorney general Andrew Bruck also tweeted about the situation and shared a press release stemming from the Garden State\u2019s financial authorities. \u201cWe\u2019ve been closely monitoring activity involving cryptocurrencies for compliance with NJ\u2019s investor protection laws. Our Bureau of Securities ordered a NJ-based company \u2013 Blockfi \u2013 to stop offering interest-bearing accounts,\u201d Bruck said<\/a> on Tuesday.<\/p>\n

<\/p>\n

A number of cryptocurrency supporters were displeased by the state of New Jersey\u2019s actions and responded to Bruck\u2019s tweet. \u201cNone of the cryptos offered on Blockfi represent ownership in a company or anything else,\u201d one individual remarked<\/a>. \u201cThey are just commodities. This makes absolutely 0 sense to the point that it\u2019s laughable. Did the NJBoS do its homework before doing this or does it just not like cryptocurrency?\u201d
\nThe press release<\/a> published by the New Jersey attorney general\u2019s office explains that the entity is stepping up to \u201cprotect investors\u201d as new financial service business models come under scrutiny. \u201cOur rules are simple: if you sell securities in New Jersey, you need to comply with New Jersey\u2019s securities laws,\u201d said the acting attorney general Bruck. \u201cNo one gets a free pass simply because they\u2019re operating in the fast-evolving cryptocurrency market. Our Bureau of Securities will be monitoring this issue closely as we work to protect investors.\u201d
\n\u201cCryptocurrency investment products offered and sold on decentralized finance platforms carry significant risks, even beyond those associated with the volatility of cryptocurrency,\u201d Kaitlin Caruso, acting director of the New Jersey Division of Consumer Affairs stressed. \u201cPlatforms like Blockfi may mirror the traditional financial structures that we know and trust, but in reality, they can leave investors extremely vulnerable.\u201d<\/p>\n

What do you think about the state of New Jersey\u2019s actions against Blockfi? Let us know what you think about this subject in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, Andrew Bruck, Blockfi, Blockfi CEO, Blockfi Interest Bearing Accounts, Bureau of Securities, Crypto Accounts, Cryptocurrency, Garden State, Interest-Bearing, Kaitlin Caruso, New Jersey, New Jersey Blockfi, protect investors, Securities, state of New Jersey, zac prince<\/p>\n","protected":false},"excerpt":{"rendered":"

On July 19, the CEO of the crypto financial services firm Blockfi, Zac Prince, told the public that the New Jersey Bureau of Securities has told the company to \u201cstop accepting new BIA clients residing in New Jersey beginning July 22, 2021.\u201d New Jersey\u2019s acting attorney general Andrew Bruck also tweeted about the issue and…<\/p>\n","protected":false},"author":0,"featured_media":9851,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-9850","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\/9850"}],"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=9850"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/9850\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/9851"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=9850"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=9850"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=9850"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}