The CoinGeek Pulse Episode 53: BlockFi ordered to cease and desist in NJ, Fabriik Exchange is live, and CoinGeek Conference returns to NY
The New Jersey Bureau of Securities has ordered financial services platform BlockFi to stop accepting and offering customers of interest-bearing accounts. This is the first time the financial regulator has issued a cease-and-desist order to a digital currency platform that gives a yield on the amount its users are lending since the ‘bull run.’
In a draft press release published by media on July 20, the New Jersey Attorney General’s Office said that BlockFi has been funding its operations through selling of unregistered securities, which is allegedly in violation of securities law.
“Our rules 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,” commented Andrew J. Bruck, BoS Acting Attorney General, in the undated press release. He added, “Our Bureau of Securities will be monitoring this issue closely as we work to protect investors.”
The cease and desist order has set a precedent for other states and federal regulators. The Alabama Securities Commission (ASC) and the Texas States Securities Board (TSSB) have also joined New Jersey in taking action just a few days after the Bureau’s order. On Wednesday, ASC issued a show-cause order to BlockFi followed by the TSSC, who’s planning to hold an allegations-related hearing, over BlockFi’s failure to register its Interest Accounts with regulators.
In a tweet on Tuesday, Zac Prince, BlockFi CEO commented, “BlockFi is engaged in an ongoing dialogue with regulators to help them understand our products, which we believe are lawful and appropriate for crypto market participants.” He then explained that BlockFi’s Intetest Accounts are not a security. He added, “We therefore disagree with the action by the New Jersey Bureau of Securities.”
While regulators are going after unregistered digital currency platforms, a fully regulated exchange has gone live.
Fabriik Exchange, a “new kid on the block” as Fabriik Markets tweeted, is a digital marketplace allowing customers to exchange directly between digital currencies. Fabriik Markets added that it is “a unique, fresh, and intuitive trading experience” to help users buy and sell digital currencies faster in a regulated environment.”
Other services offered by the platform include a real time digital asset news to help customers make trading decisions, and an instant view of the customer’s portfolio performance.
In a more exciting news, CoinGeek Conference returns for its second leg this year and opens its doors in the city of New York. The eighth CoinGeek Conference will be an in-person event and run from October 5 to 7 at The Sheraton Times Square covering the latest developments in the BSV blockchain ecosystem. To register to attend, click here.
And to cap off the week, take a look at these Tiktok sensations! Scottish-based huskies Kenny Dog-Leash and Paul Dogba are joining the latest launch of the Ayr United 2021/2022 kit.
This is the tenth year that venture capitalist and CoinGeek founder Calvin Ayre is sponsoring the Honest Men, making it one of the longest standing sponsorships in recent years, globally. Calvin Ayre invests and focuses on businesses on fintech innovations, data management, cyber security and transactable digital tokens using BSV, the original Bitcoin protocol blockchain.
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