The California Department of Financial Protection and Innovation (DFPI) is scrutinizing crypto companies that provide interest-bearing customers.
California regulator DFPI, 12 July In the statement he shared on his website on companies that offer interest-bearing crypto-asset accounts announced that he had been scrutinized. DFPI defined crypto interest account as accounts that allow customers to lend their crypto assets to the company and receive interest paid in crypto assets in return.
DFPI, reason for review volatile market conditions some of these companies from their customers’ accounts due to do not allow withdrawals and transfers between accounts as stated.
The department encourages Californian consumers and investors, many interest-bearing account providersidentifies its customers with the market, platforms and cryptocurrencies. may not have adequately explained the risks warns: “Crypto-interest account providers, insurers, banks and credit unions not subject to the same rules and protections”
DFPI, BlockFi and Voyager Digital’s some crypto interest accounts off the record reported that he had detected it. The department states that the purpose of securities registration is to ensure that investors protect their assets against the law. and to ensure that they understand the risks of the relevant market and receive all the important information necessary to invest or not in this market.
Regulator, other crypto interest account providersHe stated that he is investigating whether he has acted in violation of the legislation.
The department warned consumers to be extremely cautious before responding to any offer that offers investment or financial services. He also stated that interest-bearing crypto account providers who slow down the transfer or stop the withdrawal of crypto assets can reach DFPI free of charge from their California customers’ e-mail address or phone number, and they can file an official complaint on the DFPI website if they wish.
DFPI also warned customers to be mindful of certain aspects when submitting a complaint. These are:
- Transaction history accessible through the website or app of the crypto interest account provider,
- Correspondence with the company,
- Screenshots of the coins in the account balance are given in 3 items.