THELOGICALINDIAN - New York Advocate General Letitia James has ordered two cryptocurrency lending platforms to shut bottomward and requested three added platforms to acknowledgment questions apropos their activities anon The belletrist to the companies appear on the advocate generals website announce that the two platforms are Nexo and Celsius Network
New York Cracks Down on Unregistered Crypto Lending Platforms
New York Attorney General (NYAG) Letitia James appear Monday her new efforts to able bottomward on unregistered cryptocurrency companies.
In New York, lending platforms charge annals with the Office of the Attorney General (OAG) to accomplish in the accompaniment or action articles to its residents. The advertisement details:
The apprehension explains that crypto lending platforms “are about interest-bearing accounts that action investors a amount of acknowledgment on basic currencies that are deposited with them.” Under the Martin Act, “The attributes and action of the best accepted basic bill lending articles or casework authenticate that they abatement absolutely aural any of several categories of ‘security.’”
The U.S. Balance and Barter Commission additionally angle lending articles as securities. SEC Chairman Gary Gensler afresh told cryptocurrency barter Coinbase that its Lend articles were securities.
The NYAG website additionally appear cease and abandon letters to the two lending platforms in question. While the belletrist were redacted, the book names adumbrated that they were beatific to Nexo and Celsius Network. Three added bearding firms accustomed a letter allurement for information about their activities.
Nexo tweeted afterwards the account broke: “Nexo is not alms its Earn Product & Exchange in New York, so it makes little faculty to be accepting a C&D for article we are not alms in NY anyway. But we will appoint with the NY AG as this is a bright case of bond up the letter’s recipients. We use IP-based geoblocking.”
Attorney General James emphasized:
Last month, Attorney General James shut down the cryptocurrency trading belvedere Coinseed afterwards filing a accusation adjoin the aggregation beforehand this year. In February, she appear an acceding with Bitfinex, Tether, and accompanying entities that concluded their trading action in the accompaniment of New York and imposed an $18.5 actor amends on the companies.
Editor’s Note (Oct. 19, 2021, 5:47 p.m.): Celsius said Tuesday that the aggregation “has not accustomed a cease and abandon adjustment in NY” but is “working carefully with regulators.”
What do you anticipate about New York Attorney General Letitia James demography activity adjoin unregistered crypto lending platforms? Let us apperceive in the comments area below.
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