{"id":530181,"date":"2022-12-22T06:48:17","date_gmt":"2022-12-22T03:48:17","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/california-regulators-order-myconstant-to-cease-crypto-lending-services\/"},"modified":"2022-12-22T06:48:17","modified_gmt":"2022-12-22T03:48:17","slug":"california-regulators-order-myconstant-to-cease-crypto-lending-services","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/california-regulators-order-myconstant-to-cease-crypto-lending-services\/","title":{"rendered":"# California regulators order MyConstant to cease crypto-lending services"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3578510461b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3578510461b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/california-regulators-order-myconstant-to-cease-crypto-lending-services\/#%E2%80%9D_California_regulators_order_MyConstant_to_cease_crypto-lending_services_%E2%80%9C\" >&#8221; California regulators order MyConstant to cease crypto-lending services &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_California_regulators_order_MyConstant_to_cease_crypto-lending_services_%E2%80%9C\"><\/span>&#8221; California regulators order MyConstant to cease crypto-lending services &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTIvOGMyMjExZGItMTRkNy00MTFhLTkyNmQtOWNkYzUyYjFjZDM2LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-30a6cf80>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<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dfpi.ca.gov\/2022\/12\/21\/dfpi-orders-myconstant-to-cease-offering-crypto-related-products\/\"> stated<\/a> 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<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/dfpi.ca.gov\/2022\/12\/05\/dfpi-announces-investigation-into-crypto-lending-company-myconstant\/\"> stating<\/a> 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 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared 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<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/california-regulators-order-myconstant-to-cease-crypto-lending-services\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; California regulators order MyConstant to cease crypto-lending services &#8220; 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&#8230;<\/p>\n","protected":false},"author":1,"featured_media":530182,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/8c2211db-14d7-411a-926d-9cdc52b1cd36.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,136596,74863,74891,77595,90109,74355,117,70934],"class_list":["post-530181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-celsius","tag-cryptocurrencies","tag-ethereum","tag-lending","tag-peer-to-peer-lending","tag-adoption","tag-business","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/530181","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=530181"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/530181\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/530182"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=530181"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=530181"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=530181"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}