Cryptocurrency Lending platform Blockfi has been awarded a money services license in Iowa which licenses the company to offer stablecoin trading services and instant ACH transfers to local Blockfi customers. This new license arrives two weeks after the Iowa Insurance Division ruled that the crypto lender stop operations and pay a $943,000 fine for violating security law in the jurisdiction.

Reportedly, Blockfi was already offering a securities trading platform to Iowan residents without registering it with the appropriate finance authorities at the time which resulted in their operations being halted as the insurance regulators levied that fine which was paid before operations could resume.

The fine was part of the $100 million settlement the company had agreed with the U.S. Securities and Exchange Commission and other regulators in 32 states. The crypto company was ordered to pay $50 million to the U.S. SEC with the remainders going to the other regulators in each jurisdiction.

The heavy $100 million fine could be one of the reasons why Blockfi cut down its workforce by 20% in early June citing “the spontaneous macroeconomic conditions worldwide” as the major reason for that economic action. However, a week later on June 21, Blockfi signed a lifeline credit facility agreement for $250 million with crypto exchange FTX to strengthen their balance sheets and bolster their platform.

The new license is good news for Blockfi which has struggled recently along with other crypto companies because of the distasteful market conditions and dipping crypto prices.

Featured image source: Fox Business



  • Avatar
    Felix Aikhuele
    July 2, 2022

    FTX doing FTX things. Saving lives since the stone age.

    • Avatar
      Peter Ubonabasi Abasiakara
      July 4, 2022

      Yes, you know this!

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