- New Jersey Bureau of Securities produced cease and desist orders
- It summons BlockFi providing unregistered securities to its customers.
- Zack strongly disagrees with the action.
New Jersey Bureau of Securities had produced a cease and desist order cryptocurrency custodian, BlockFi to stop offering interest-bearing accounts in New Jersey state.
Moreover, the news was first announced by Forbes on July 19, with the outlet mentioning an undated, unpublished draft press release. Which published that the New Jersey Bureau of Securities is in the plan to produce a summary Cease and Desist order to cryptocurrency exchange BlockFi.
Accordingly, it summons BlockFi of providing unregistered securities to its customers. New Jersey Attorney General Andrew J.Bruck noted, “We are simple: if you sell securities in New Jersey you need to comply with New Jersey’s securities laws. No one gets a free pass simply because they’re operating in the fast-evolving cryptocurrency market”.
Hence more, Bitcoin and Ethereum are strongly believed to be commodities based on SEC and CFTC and actions. Other belongings belong to BlockFi such as Chainlink and Uniswap have less clarity.
Furthermore, the BlockFi platform has received an order from the New Jersey Bureau of Securities commanding to stop onboarding BlockFi Interest Account (BIA). This established by the CEO of BlockFi, Zack Prince on July 20.
More so, Zack Prince explained,
“BlockFi engaged in an ongoing dialogue with regulators to help them understand our products. Which we believe are lawful and appropriate for crypto market participants”.
Even more, Zack Prince added that BlockFi Interest Account (BIA) is not a security. We strongly disagree with the action by the New Jersey Bureau of Securities.
The news published nearly one month after Zack prince said the impending regulations on crypto would be favorable for the industry.
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