california editor DFPI, crypto loan platform MyConstantSanctioned for violating state securities law.
Regulators globally have tightened their moves towards the crypto industry. End FTX After the events, the vaporization of billions of dollars triggered legal processes. Many countries shared a consensus on the rapid regulation of cryptocurrencies. On the other hand, regulators spend a lot of time overseeing and regulating thousands of cryptocurrency institutions. However, an official and full regulation is not yet ready. In the middle of all these processes, USAof Californiaa regulator from the state DFPIhas sanctioned the crypto lending platform.
California Regulator Targets Crypto Credit Platform
CaliforniaFinancial Protection and Innovation Department ( DFPI), crypto enterprise MyConstantinstructed to discontinue a number of its crypto-related products.
DFPI notified MyConstant that it violated its peer-to-peer loan brokerage service and state law. In this context, the regulator demanded that the platform stop offering interest-bearing crypto-asset accounts.
Consumer protection laws of the US state of California, DPFIprotected by. DPFIcrypto credit institution Securities Act and California Consumer Financial Protection ActHe justified that he violated the
It was also stated that the crypto platform is engaged in unlicensed loan brokerage and this is not considered appropriate.