BlockFi receives Money Services License in the State of Iowa

Renowned crypto lending and trading platform BlockFi has recently secured a money license in the State of Iowa.
Renowned crypto lending and trading platform BlockFi has recently secured a money license in the State of Iowa.

Crypto lending and trading platform BlockFi has recently secured a money license in the State of Iowa. This allows the company to offer instant ACH transfers and stablecoins trading to local customers.

The company announced the news on Twitter by stating, “Iowa residents can now trade stablecoins on our platform and instantly transfer funds via ACH.”

BlockFi recently faced heavy penalties

The cryptocurrency lender was issued a fresh regulatory approval just two weeks after the Iowa Insurance Division ordered it to cease operations and pay $943,000 for breaking local securities laws. The investigation claims that BlockFi provided citizens of Iowa with access to a securities trading platform without registering it with the necessary authorities.

$100 million settlement between BlockFi and the U.S. SEC and other regulators in 32 states included the fine. The crypto lender was required to pay the SEC $50 million and the regional securities regulators the remaining amounts.

Moreover, as we reported, BlockFi cut its employees by 20% in June, claiming a “dramatic shift in macroeconomic conditions worldwide,” which may have included the $100 million penalties. However, it is not the only company suffering from a massive plummeting in the crypto market. Several crypto companies have announced a similar downsizing.

Notably, the crypto lender recently inked a term sheet agreement with crypto exchange platform FTX to establish a $250 million credit facility to strengthen its balance sheet and position in the market, despite CEO Zac Prince’s assertion that “everything is working.”

The cryptocurrency lender announced three days after the revolving credit arrangement that it would raise interest rates on seven digital assets across all tiers of its BlockFi Interest Account (BIA).

Intrestingly, there have been rumors that FTX has been seeking to buy a share in the crypto lending firm since the beginning of the week, as TheCoinRise reported.