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Bitcoin News Regulators In California Reviewing Crypto Interest Accounts To Check All Rules Are Met

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There are many reasons to be cautious with the operation of some services and companies related to cryptocurrencies. Some of these companies have attracted the attention of various regulatory authorities in different countries through their services. In addition, many jurisdictional laws now have strict regulatory positions on companies offering unregistered securities.

Many countries have listed regulations and classifications to better regulate crypto-assets and services. Such rules are considered guidelines for the operation of cryptocurrency service providers. However, in some cases, if any business violates the law and creates inertia, leading to loss of capital for customers, the management agency will consider to be responsible and have consequences. certain.

Related reading | Bitcoin Supply Still Not Enough for Historical Bear Bottoms

In a recent reportThe California Department of Financial Innovation and Protection (DFPI) scrutinizes activities in crypto interest accounts.

The department has begun investigating several crypto interest account providers. The purpose is to determine if suppliers are breaking the law within the Department’s jurisdiction. The agency released a notice on Tuesday stating that crypto interest account providers operate entirely differently from banks and credit unions.

The ministry also revealed that such platforms restrict users’ access to their funds for withdrawals and transfers to other accounts. The ministry mentioned that the operators of such platforms hide some information from their users. They do not inform them of the potential risks of depositing money on the platform.

Crypto interest account provider accused of offering unregistered securities

In addition, the Ministry of disclosure that some crypto interest account providers are offering unregistered securities in their service. It mentioned that it issued two cease-and-desist orders for Voyager and BlockFi. Ban them from operating in California.

Daily chart showing crypto market ahead with 1% growth | Source: Total crypto market capitalization on TradingView.com

DFPI already exists warning Residents must exercise caution when engaging in any financial service or investment offering. The department issued a warning following stories from several interested account providers such as Voyager Digital and Celsius Network.

Vendors have locked down user funds due to insolvency issues stemming from the prevailing crypto bear market. As a result, the locked assets took place with no certainty of release.

One of the affected platforms, Voyager, is working on a plan to recover users’ funds through a post-bankruptcy restructuring. As a result, those who deposit on the platform will receive Voyager shares of the newly reorganized company. In addition, users will have the right to raise capital from Three Arrows Capital (3AC).

Related reading | The Fed measures inflation in Bitcoin terms, a challenge to fool the public

Featured image from atleticodemadrid.com, chart from TradingView.com

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Teja
Teja
I am passionate about journalism and using new technology to spread news. I am also interested in politics and economics, and I am always looking for ways to make a difference in the world. I am the CEO of Janaseva News, and I am 24 years old.

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