DESPITE A HEAVY FINE IMPOSED ON BLOCKFI IN IOWA IT MANAGED TO GET LICENSE
Just two weeks after Iowa regulators were fined for issuing and selling unregistered securities, the crypto lending platform BlockFi announced on June 28 that it had obtained a Financial Services License from the government.
The Iowan license will allow the crypto lender to earn money and sell payment tools to the government. BlockFi on Twitter said it would start by allowing Iowan residents to trade in stablecoins.
Earlier on June 14 the Iowa Insurance Division (IID) responsible for the sale of securities to the state fined BlockFi more than $ 943,000 for violating the country's Securities Act. The IID alleges that BlockFi "issued and sold securities in Iowa that were not registered or approved for sale in Iowa" and failed to register as a seller or agent.
The fine was part of a larger fine imposed by the United States Securities and Exchange Commission (SEC) in February on non-registration of high interest-bearing interest accounts that the commission saw as collateral.
Penalty was one of the biggest penalties ever imposed on an organization administrator in a crypto business. BlockFi was fined $ 100 million in residential areas, one half paid to the SEC and the other half to 32 counties filed similar cases.
Shortly afterwards, BlockFi said it intended to register with the SEC to secure crypto-interest security for its US customers to replace current interest accounts.
The new license is a spark of good news from BlockFi that has struggled with other blockchain and crypto companies in ever-worsening market conditions and falling crypto prices.
On June 16, BlockFi was among the lending companies that were forced to relinquish some of the positions at Three Arrow Capital (3AC) and the company was unable to meet the value of the Bitcoin (BTC) loan.
Celsius, a rival crypto currency platform, has suspended its withdrawal of customers on June 13 setting the decision due to market conditions. Other reports follow that the company is facing a financial crisis and will soon face shortages.
The situation has also seen a blockchain cycle of blockchain and crypto companies, with BlockFi CEO Zac Prince saying that on June 14 it will allow 20% of its employees to leave in order to remain profitable. It is not known how much the SEC's financial sanctions affected the decision.
A week later on June 21, BlockFi received a live stream from the crypto exchange FTX which saw BlockFi sign a $ 250 million revolving credit bureau agreement to strengthen the company's balance sheets and strengthen the platform.
A few days later, it was reported that FTX could hold talks to buy a stake in BlockFi, although a BlockFi spokesman told Cointelegraph on June 24 that it "does not comment on market rumors" and "is still negotiating terms of the agreement", and shareholders are reportedly unhappy with the move. equity of shareholders.
It has recently been reported that Anthony Pompliano investment company Morgan Creek is trying to put together another $ 250 million contract to buy a large portion of BlockFi.