Regional Authority in New Jersey Directs Blockfi to Refrain From Extending Crypto Accounts

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Zac Prince, Blockfi’s CEO, told the public on the 19th of July, 2021, that his firm has been served with a notice of cease and desist from extending a particular account offering by the New Jersey Bureau of Securities. He said that the firm has been ordered to immediately stop offering interest-based accounts within the region and that the firm is expected to ensure compliance with the orders by 22nd July 2021. Andrew Bruck, who is the regional AG, also made a statement that his office is personally monitoring the activities of the digital assets in the region.

On 19th of July, 2021, a region-wise cease and desist order, in draft shape, was uncovered by Forbes’s journalist, Michael del Castillo. According to Castillo, the cease and desist order was issued by the New Jersey Bureau of Securities (NJBS) to a crypto firm, Blockfi. It was reported by Forbes that the firm was involved in extending crypto accounts of interest-based to the customers in New Jersey. It was further noticed that the firm was also offering crypto debit and credit cards as well to regional customers.

In the second half of the day, Zac Prince, who is the CEO of Blockfi also confirmed receiving the notice from NJBS. He informed Twitter that the authority had sent his firm the notice of cease and desist. He further revealed that the firm has been directed not to extend any interest-based accounts relating to crypto. He stated that the firm has been given a deadline of 22nd July 2021 to implement the order in letter and spirit.

The CEO confirmed that they have no choice but to implement the order. However, he ensured the firm’s customer to take up the matter with the authority for exploring the possibility of coming to a mutual consensus. He also revealed that the authority has grown concerns over the interest-based crypto account offering. But he is not sure what is the problem with the offering, said Prince. For this, he claimed that meetings will be held with the authority to clear any ambiguities.

In the meanwhile, Andrew Bruck, who is currently the acting regional Attorney General, also made a statement. In the statement, Bruck said that his office is personally monitoring and supervising every activity relating to crypto. He ensured that if the Office finds out any discrepancy in the compliance, then action will be taken in accordance with the law. Burck also made a statement that NJBS’s directives have been issued for the ultimate protection of the customers of New Jersey.

However, the directives of NJBS as well as the statement of regional AG were not appreciated by the local crypto supporters. A person also found tweeting that Blockfi was victimized by NJBS. He also said that the authority has lost its mind and functions of the authority have been handed over to senseless people.

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