California watchdog issues cease order on crypto firm
Due to potential breaches of state securities law, the California Department of Financial Protection and Innovation (DFPI) has ordered the cryptocurrency lending platform MyConstant to stop marketing many of its cryptocurrency-related products. This comes after the watchdog issued a warning in July stating that it would be cracking down on companies offering cryptocurrency interest accounts in the state.
The California Securities Law and the California Consumer Financial Protection Law, according to the DFPI, have been broken by MyConstant’s provision of interest-bearing crypto asset accounts and peer-to-peer loan brokering services. The DFPI ordered MyConstant to “desist and refrain” from providing these services.
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