2 credit platforms must be closed - regulation
2 credit platforms must be closed - regulation
The New York general prosecutor Letitia James ordered the closure of two cryptocurrency credit platforms and asked three other platforms to answer questions about her activities immediately. The letters published on the website of the General Prosecutor's website show that the two platforms are Nexo and Celsius Network.
New York cracks in non-registered crypto credit platforms
The New York Attorney General (NYAG) Letitia James announced her new efforts on Monday to act against non -registered cryptocurrency companies.
In New York, credit platforms must register with the Office of the Attorney General (OAG) in order to work in the state or offer its residents to products. The announcement details:
Today, Attorney General James has instructed two of these credit platforms to immediately stop their non -registered and illegal activities in New York, and instruct three other platforms to provide information about their activities and products immediately.
The message states that crypto credit platforms are "essentially interest-bearing accounts that offer investors a return for virtual currencies that are stored with them". According to the Martin Act, "show the type and function of the most common credit products or services for virtual currencies that clearly fall into one of several categories of 'security'."
The US stock exchange supervisory authority Securities and Exchange Commission also views credit products as securities. The SEC chairman Gary Gensler recently told the Coinbase cryptocurrency exchange that their lend products are securities.
The nyag website also published vertical Letters to the two relevant loan platforms. While the letters were edited, the file names indicated that they were sent to Nexo and Celsius Network. Three other companies received A Please send information about their activities.
nexo tweeted after the news became known: "Nexo does not offer his Earn Product & Exchange in New York, so it makes little sense to get a C&D for something that we do not offer in anyway. But we will deal with NY AG, since this is a clear case of confusion of the recipient of the letter. We use IP-based geoblocking."
Attorney General James emphasized:
cryptocurrency platforms have to adhere to the law, which is why we now instruct two crypto companies to close and force three more to answer questions immediately.
Last month, Attorney General James turn off the cryptocurrency trading platform Coinseed after submitting a lawsuit against the company at the beginning of this year. In February, she announced an agreement with Bitfinex, Tether and connected companies that ended her trading activities in the state of New York and imposed a fine of $ 18.5 million to the companies.
What do you think that the New York general prosecutor Letitia James is doing non-registered crypto loan platforms? Let us know in the comment area below.
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