The American cryptocurrency lending platform BlockFi, after paying a fine, was able to officially provide services to tax residents of the state of Iowa.
BlockFi announced on Twitter that it received a license from the regulator of the US state of Iowa (IID) to provide crypto-currency services to residents of the state, in particular, to instantly transfer funds via ACH.
The license was issued just two weeks after the Iowa Insurance Commissioner ordered the crypto lender to stop operating and pay a $943,000 fine for violating securities laws. Authorities accused BlockFi of offering local residents a platform to trade securities without registering with the relevant authorities.
The fine issued in Iowa was part of a large $100 million penalty imposed by the US Securities and Exchange Commission (SEC) and regulators in 32 states. The crypto lender was ordered to pay $50 million to the SEC, with the remainder to local regulators.
In early June, BlockFi cut its staff by 20% due to “drastically changing macroeconomic conditions around the world.” Before falling under the SEC investigation, the American service BlockFi submitted an application to the Commission to launch an exchange-traded fund (ETF) for bitcoin.
In 2021, BlockFi CEO Zac Prince, facing regulatory challenges, said that cryptocurrency lending services will survive despite government pressure.
Source: Bits
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