BlockFi has been given at least one month to provide more information about its new BlockFi Interest Accounts (BIAs) before the New Jersey Bureau of Securities (NJ BOS) decides if it should effect a ban on the BIAs.
- Last week BlockFi was under scrutiny by three states in the US for its BlockFi Interest Accounts (BIAs)
- The other two states at loggerhead with BlockFi for its BlockFi Interest Accounts were Alabama and Texas
- New Jersey Bureau of Securities (NJ BOS) ban was originally set to go into effect on July 22 before being pushed to July 29
On Wednesday, BlockFi shared through its tweeter handle that following its ongoing talks with various regulators including the New Jersey Bureau of Securities (NJ BOS) it had been allowed about one month to provide information about its new BlockFi Interest Accounts (BIAs) failure to which the interest accounts shall be banned.
BlockFi will have till September 2 for it to submit the required information. It is the second time the NJ BOS is delaying its ban on the new BlockFi Interest Accounts (BIAs) and it is not clear what happens next if BlockFi fails to submit the information.
BlockFi has maintained that the BIAs are not unregulated securities as the regulators from the three US states claim.
“We firmly believe that the BIA is lawful and appropriate for crypto market participants, and we remain steadfast in our commitment to fight for consumers rights to earn interest on their crypto assets,” BlockFi stated on its tweeter handle on Wednesday.
And while BlockFi is in a race to protect its new product, the BlockFi Interest Accounts, it has maintained that order from the New Jersey Bureau of Securities (NJ BOS) and the other regulators from the other two states does not affect existing BlockFi customers nor does it affect the other products offered by BlockFi.
It is still not clear how the outcome of these developments will affect new BlockFi customers.
According to NJ BOS BlockFi holds assets worth $14.7 billion through the BIAs though it is not clear how much of that comes from BlockFi users from New Jersey.