Erik Weijers, a year ago
The US financial watchdog, the SEC, has fined US crypto lending platform BlockFi 100 million. Their crypto Interest Account did not comply with securities laws. It is the highest fine handed out by the SEC to date. It is expected that BlockFi will not be the last centralized or decentralized lending platform to be in the regulatory crosshairs. Still, this is not necessarily bad news for crypto in the US.
The SEC's action should also be seen as some muscle flexing. They have scored points in the turf warbetween US government agencies for control of crypto-regulation. In crypto circles, the news is predominantly met with cynicism. 'Thank you SEC, for protecting American investors from receiving interest!'
Like Celsius and Nexo, BlockFi offers decent interest rates on crypto savings. About 8 percent on stablecoins is quite common. No wonder the SEC is going after such a financial product: it's quite the competition for traditional banks, where interest rates are a whole lot closer to 0%.
BlockFi says it has fully cooperated with the SEC and settled rather than challenged the allegations. BlockFi says it is submitting a new loan product, in the hope that it will comply with regulatory requirements. Incidentally, this changes matters only for account holders from the United States. Foreigners can still use the product. What is changing is that new US customers will not be accepted - but existing customers will keep their terms and conditions and will be transferred to BlockFi's new loan product in due course, if they wish.
The news is not necessarily bad for the crypto industry. First, it's good that there will be more transparency about the sources from which institutions like BlockFi can pay their interest earnings. Second, this case paves the way for acceptance by the traditional minded SEC of similar financial products. The next loan product may well be approved and with it will come legal clarity. The legal uncertainty, which makes many traditional investors cautious about investing, will then disappear. That's good for adoption of crypto.
Mar 16, 2023
Airdrops are very popular among crypto investors. They offer the opportunity to gain free tokens and possibly make a fortune selling them at the right time. There are even airdrop hunters trying to guess which project presents the next opportunity to earn free coins and tokens. Arbitrum was rumored to be the next in line since it started. The waiting is over as the team has announced the airdrop of the ARB tokens this month.
Mar 09, 2023
The Shibarium launch has been postponed a few times and the community marveled about what would happen once the launch commenced. It looks like we all are going to find out soon. The Shiba Inu team announced that the beta version will start this week. Since it is already Thursday it looks like we don’t have to wait much longer.
Mar 06, 2023
Don’t sleep on Binance Chain: it is the largest chain in terms of daily active addresses. In the final week of February, Binance unveiled their technical roadmap for 2023. Some of the areas of focus are a separate chain for data storage, increased transaction throughput and network decentralization.
Mar 01, 2023
Solana had another outage last weekend and it took over 20 hours until transactions were transmitted again. This has been one of many incidents the high-speed blockchain suffered from in the past 12 months. Another outage just happened in January but was less severe than the last crash of the network. The worst part is that the cause of the last incident is yet unknown and developers are working tirelessly to resolve the issue.
Sign up to stay informed via our email updates