The New Jersey Bureau of Securities ordered cryptocurrency trading and lending platform BlockFi to stop accepting new BlockFi Interest Accounts (BIA). This was confirmed by the executive director of BlockFi, Zac Prince, through his account at the social network Twitter.
Zac Prince stated: “On Monday night, BlockFi received an order from the New Jersey Office of Securities regarding the operations of the BlockFi Interest Account (BIA) in the state of New Jersey.”
The move came less than a month away from BlockFi notifying that its BIA product would support UNI, the governance token linked to the popular DEX Uniswap. However, the regulatory authority did not indicate which assets offered in BIA constitute securities.
According to the CEO, the order requires BlockFi to stop accepting new BlockFi Interest Account (BIA) customers residing in New Jersey as of July 22, 2021. He said services for existing customers were fully functional.
He also expressed that BlockFi’s BIA services are completely legal and not securities. “BlockFi engages in an ongoing dialogue with regulators to help them understand our products, which we believe are legal and appropriate for cryptocurrency market participants.”
The manager showed through the social network Twitter his disagreement with the regulatory office when he indicated: “BIA is not a security and, therefore, we do not agree with the action of the New Jersey Office of Securities.”