California Crypto 1000x600 1 Financial regulator probing illegal crypto lending practices

Financial regulator probing illegal crypto lending practices

– The California Department of Financial Protection and Innovation (DFPI) is investigating whether crypto-asset companies that suspended withdrawals and transfers have broken the law.

– The investigation focuses on “multiple companies” which offer interest-bearing crypto-asset accounts, along with service providers that “may not have adequately disclosed risks customers face when they deposit crypto-assets onto [lenders] platforms.”

– The DFPI has said in the past that crypto interest account providers arent governed by the same rules and protections as banks and credit unions.

– The DFPI has said that some crypto account providers were trading in unregistered securities: The state issued two cease and desist orders to Voyager and BlockFi.

– Voyager Digital has recently filed for Chapter 11 bankruptcy, which PYMNTS reported has shaken the confidence of even veteran crypto investors.

– The reports said that Voyager customers might not get all their money back, which has added to investors fears.

 

 

California Crypto Financial regulator probing illegal crypto lending practices
Financial regulator probing illegal crypto lending practices 3

Leave a Reply

%d bloggers like this: