{"id":15735,"date":"2022-12-22T10:32:58","date_gmt":"2022-12-22T10:32:58","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/myconstant-ordered-to-cease-crypto-lending-services-in-califonia\/"},"modified":"2022-12-22T10:32:58","modified_gmt":"2022-12-22T10:32:58","slug":"myconstant-ordered-to-cease-crypto-lending-services-in-califonia","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/myconstant-ordered-to-cease-crypto-lending-services-in-califonia\/","title":{"rendered":"MyConstant ordered to cease crypto-lending services in Califonia"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1671699799730-be94d2ab-1157-472b-b30f-1734fd90e72d-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1671699799730-be94d2ab-1157-472b-b30f-1734fd90e72d-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1671699799730-be94d2ab-1157-472b-b30f-1734fd90e72d-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/1970\/01\/1671699799730-be94d2ab-1157-472b-b30f-1734fd90e72d-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/><\/picture><\/div>\n<ul>\n<li>California Department of Financial Protection and Innovation (DFPI) has ordered MyConstant to cease offering some products.<\/li>\n<li>The DFPI had warned in July that it would crack down on crypto interest account providers.<\/li>\n<li>DFPI argues that MyConstant offered and sold unqualified, non-exempt securities.<\/li>\n<\/ul>\n<p>In a <a href=\"https:\/\/dfpi.ca.gov\/2022\/12\/21\/dfpi-orders-myconstant-to-cease-offering-crypto-related-products\/\">press release<\/a> on December 21, the California Department of Financial Protection and Innovation (DFPI) ordered crypto lending platform MyConstant to \u201cdesist and refrain\u201d from offering a \u00a0number of its crypto-related services in California. This comes after the department warned in July that it would be cracking down on crypto interest account providers in the state.<\/p>\n<p>The DFPI first announced it was investigating MyConstant on <a href=\"https:\/\/dfpi.ca.gov\/2022\/12\/05\/dfpi-announces-investigation-into-crypto-lending-company-myconstant\/\">December 5 via a press release<\/a> that stated that MyConstant was not licensed to operate in California.<\/p>\n<p>MyConstant was specifically ordered to stop offering its peer-to-peer loan brokerage service and interest-bearing crypto asset accounts. The DFPI says that the two products violate the California Consumer Financial Protection Law and California Securities Law.<\/p>\n<p>According to the DFPI, MyConstant\u2019s offering and selling of its peer-to-peer lending service known as \u201cLoan Matching Service\u201d contravenes California\u2019s financial codes. The department said that the crypto lender engaged in \u201cunlicensed loan brokering,\u201d since the platform allowed lenders to lend without proper licenses.<\/p>\n<h2>DFPI\u2019s problem with MyConstant interest-bearing products<\/h2>\n<p>Besides the <a href=\"https:\/\/coinjournal.net\/glossary\/peer-to-peer-p2p-lending\/\">P2P lending<\/a>, the DFPI also has problems with MyConstant\u2019s fixed interest-bearing crypto asset product. The product allows customers to deposit crypto assets and fiat with the promise of receiving a fixed annual percentage interest return.<\/p>\n<p>According to the DFPI, the product is an example of where MyConstant offered and sold unqualified, non-exempt securities.<\/p>\n<h2>MyConstant has been facing hard economic times<\/h2>\n<p>The action by DFPI comes at a time when the crypto lender seems to be going through tough times. On November 17, it announced that it was unable to continue with business as usual due to the rapidly deteriorating market conditions that prompted heavy withdrawals.<\/p>\n<p>The platform then limited its business activities including pausing withdrawals and announcing that \u201cNo deposit or investment request will be processed at this time.\u201d<\/p>\n<p>Since then MyConstant has been updating its users on its website on future plans including recently (December 15) updated plans that include a financial overview, estimated recovery, and liquidation schedule.<\/p>\n<p>The platform has however continued to offer crypto-backed loans, ensuring borrower compliance, processing loan repayments, returning borrowers\u2019 collateral once they repay their loans in full, and <a href=\"https:\/\/coinjournal.net\/glossary\/liquidation\/\">liquidation <\/a>of borrowers\u2019 collateral if they default.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/myconstant-ordered-to-cease-crypto-lending-services-in-califonia\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) California Department of Financial Protection and Innovation (DFPI) has ordered MyConstant to cease offering some products. The DFPI had warned in July that it would crack down on crypto interest account providers. DFPI argues that MyConstant offered and sold unqualified, non-exempt securities. In [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":15736,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/15735"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=15735"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/15735\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/15736"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=15735"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=15735"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=15735"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}