Crypto lending firms on the hot seat: New regulations are coming?
The sheer amount of money invested in the crypto space is causing regulatory dialog to occur at a frenetic pace as regulators struggle to keep pace. A number of states in the United States, including Kentucky, Texas, Alabama, Vermont, New Jersey and, most recently, New York have been cracking down on crypto lending. Depending on one’s perspective, these can amount to acts of collective desperation or a foretoken of things to come.Asked about the clampdown on crypto lending firms like BlockFi and Celsius, Firat Cengiz, senior lecturer in law at the University of Liverpool, told....
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The SEC’s main concern reportedly lies with the high-yield offering by crypto lending services, which are often considerably higher than most savings banks. The United States Securities and Exchange Commission is reportedly reviewing some of the high-yield crypto lending products offered by Gemini, Celsius Network and Voyager Digital.According to a report published on Bloomberg, the SEC is conducting an inquiry into digital asset lending services. The main focus of the inquiry is reportedly around whether the crypto lending services could be considered securities and, therefore, must be....
The crypto winter brought more devastating impacts on some crypto lending platforms. There was a lot of battling by most lending firms to evade liquidation. Their turbulent waves created distrust, loss of hope, and funds for many investors. In the history of the crypto lending space, instability and quaking are connected to the collapse of […]
The MAS reportedly asked crypto firms about their owned tokens, top lending and borrowing counterparties, loans and top tokens staked via DeFi. The Monetary Authority of Singapore (MAS) has started taking measures to prepare for new cryptocurrency regulations addressing the ongoing liquidity crisis and withdrawal issues.Singapore’s central bank has sent detailed questionnaires to some applicants and holders of the MAS’ Digital Payment Token licenses, Bloomberg reported on Friday.Sent over the last month, the questionnaires were reportedly seeking “highly granular information” about....
The decision by Crypto.com comes just within a month of BlockFi’s $100 million penalties for its lending products, as many speculate regulatory clampdown could be the potential reason behind the decision. Crypto.com is reportedly giving users from countries restricted from its loan program until March 15 to repay their crypto loans. The firm updated the list of restricted countries to include the United States, the United Kingdom and 38 others. Users from European nations such as Germany, Switzerland and the U.K. have all shared emails from the company regarding the loan closure date. It‘s....
These new regulations will also have an impact on Bitcoin in China. Since cryptocurrency does not fall under these regulations, it may become the new peer-to-peer lending option. Peer-to-peer lending has always been a very popular trend in China. That is not entirely surprising, as the country is keen on innovation and embracing new trends. But there have been a fair amount of problems with P2P lending in China over the past few months. New rules have been announced, which will put a vice grip on this innovative business model. At its core, any peer-to-peer service should not shut down....