Crypto Lender BlockFi Licensed to Expand Services Lowa - TheNewsCrypto
- Iowa residents can trade stablecoins in Lowa.
- BlockFi Reduced its workforce by 20% this month.
On June 28, BlockFi a crypto lending platform based in Jersey announced that it has received a money service license in Iowa, just two weeks after being fined by Iowa regulators for offering and selling unregistered securities. The Iowa license will allow the cryptocurrency lender to buy and sell funds in the state.
On Twitter, BlockFi stated that it will begin by allowing Iowa residents to trade stablecoins.
We're excited to announce that we’ve received our Money Services License in Iowa.— BlockFi (@BlockFi) June 28, 2022
Iowa residents can now trade stablecoins on our platform and instantly transfer funds via ACH. pic.twitter.com/sNEFIlCeWY
BlockFi Recent Appears
Recently, on June 14, the Iowa Insurance Division (IID), which is in control of securities sales in the state, fined BlockFi more than $943,000 for violations of the state Securities Act. BlockFi agreed to pay $100 million to settle with the Securities and Exchange Commission and securities regulators from 53 states, after offering and selling securities without being registered as a broker-dealer or agent.
Despite this, on June 21, the CEO of BlockFi Zac Prince announced that BlockFi had secured a $250 million credit facility from leading cryptocurrency exchange FTX. BlockFi intended to use the funds to strengthen its balance sheet.
Following that, a Wall Street Journal report revealed that FTX is in talks to acquire a stake in BlockFi. However, the companies were not discussing the agreement. In addition, BlockFi sold its stake in 3AC and reduced its workforce by 20% this month.
According to recent reports, Anthony Pompliano’s investment company Morgan Creek is trying to raise a $250 million deal to acquire a majority stake in BlockFi. The new license is a spark of hope for BlockFi, which has struggled as other blockchain and crypto companies in recent market conditions.
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