{"id":15880,"date":"2022-12-22T04:00:45","date_gmt":"2022-12-22T04:00:45","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/california-regulators-order-myconstant-to-cease-crypto-lending-services\/"},"modified":"2022-12-22T04:00:47","modified_gmt":"2022-12-22T04:00:47","slug":"california-regulators-order-myconstant-to-cease-crypto-lending-services","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/california-regulators-order-myconstant-to-cease-crypto-lending-services\/","title":{"rendered":"California regulators order MyConstant to cease crypto-lending services"},"content":{"rendered":"<p><\/p>\n<div data-v-30a6cf80=\"\">\n<p>The California Department of Financial Protection and Innovation (DFPI) has ordered crypto lending platform MyConstant to cease offering a number of its crypto-related products over alleged state securities law violations.<\/p>\n<p>The DFPI stated in a press release on Dec. 21 that it has ordered MyConstant to \u201cdesist and refrain\u201d from offering its peer-to-peer loan brokering service and interest-bearing crypto asset accounts, which it says are in violation of the California Securities Law and California Consumer Financial Protection Law.<\/p>\n<p>The DPFI alleged that MyConstant\u2019s offering and selling of its peer-to-peer lending service called \u201cLoan Matching Service\u201d violates one of the state\u2019s financial codes. <\/p>\n<p>It also alleged that MyConstant engaged in \u201cunlicensed loan brokering,\u201d as the platform induced lenders to lend without proper licenses. <\/p>\n<p>The regulators also had a problem with the crypto lender\u2019s fixed interest-beating crypto asset products, whereby a customer deposits crypto assets (such as stablecoins and fiat) and are promised a fixed annual percentage interest return. <\/p>\n<p>It said that these were examples where MyConstant offered and sold unqualified, non-exempt securities. <\/p>\n<p>In July, the regulator said it was investigating\u00a0multiple crypto interest account providers to determine whether they are \u201cviolating laws under the Department\u2019s jurisdiction.\u201d<\/p>\n<p>DFPI first announced it was investigating MyConstant in a press release on Dec. 5 stating that MyConstant is \u201cnot licensed\u201d by DFPI to operate in California.\u00a0<\/p>\n<p><strong><em>Related:\u00a0California regulator investigating crypto interest accounts<\/em><\/strong><\/p>\n<p>The recent action comes only a month after the California-based company appeared to have fallen into hard times, announcing on Nov. 17 that \u201crapidly deteriorating market conditions\u201d prompted heavy withdrawals and that it was \u201cunable to continue to operate our business as usual.\u201d<\/p>\n<p>The platform at the time added that it had limited its business activity, including pausing withdrawals, and that: \u201cNo deposit or investment request will be processed at this time.\u201d<\/p>\n<p>The platform has been providing users with updates on its website since then, including an updated plan sent to users on Dec. 15 which includes a financial overview, liquidation schedule, estimated recovery, and next steps.<\/p>\n<p>At the time, the platform said it will continue to administer its crypto-backed loans, including ensuring borrower compliance, processing loan repayments, returning borrowers&#8217; collateral (when their loans are paid in full), and liquidating borrowers&#8217; collateral in the event of default. <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The California Department of Financial Protection and Innovation (DFPI) has ordered crypto lending platform MyConstant to cease offering a number of its crypto-related products over alleged state securities law violations. The DFPI stated in a press release on Dec. 21 that it has ordered MyConstant to \u201cdesist and refrain\u201d from offering its peer-to-peer loan brokering [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15881,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"footnotes":""},"categories":[42],"tags":[],"class_list":["post-15880","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>California regulators order MyConstant to cease crypto-lending services | NFT &amp; Crypto News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nftandcrypto-news.com\/crypto\/california-regulators-order-myconstant-to-cease-crypto-lending-services\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"California regulators order MyConstant to cease crypto-lending services | NFT &amp; Crypto News\" \/>\n<meta property=\"og:description\" content=\"The California Department of Financial Protection and Innovation (DFPI) has ordered crypto lending platform MyConstant to cease offering a number of its crypto-related products over alleged state securities law violations. 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