Authorities in New Jersey have ordered crypto trading and lending platform, BlockFi, to stop accepting new interest account users on its platform.
According to the exchange’s CEO and founder Zac Prince, he stated that the firm is still very much operational in the states, however, it will not be able to take in new clients. In his words, “the order calls for BlockFi to stop accepting new BIA [BlockFi interest account] clients residing in New Jersey beginning July 22, 2021.”
Late Monday evening BlockFi received an order from the New Jersey Bureau of Securities regarding BlockFi Interest Account (BIA) operations in the State of New Jersey.
— Zac Prince (@BlockFiZac) July 20, 2021
Forbes had earlier reported that the New Jersey Attorney General and its Bureau of Securities were working on a cease and desist order against the crypto firm.
The Forbes report had stated that the exchange “has been funding and facilitating its cryptocurrency lending and trading operations at least partly through the sale of unregistered securities in alleged violation of relevant securities laws.”
New Jersey authorities also highlighted how the crypto exchange popular interest account was a contravention to other traditional financial institutions in the country.
According to them “decentralized finance platforms, known in the industry as DeFi, do not offer FDIC or SIPC insurance like traditional banks and brokerages. However, while BlockFi offers similar savings and lending platforms to those that operate on top of decentralized ledgers, such as Uniswap or Compound, it is a centralized company.”