BlockFi secures license in Iowa

The crypto lending platform BlockFi has obtained a license to provide financial services in the state of Iowa (United States).

We’re excited to announce that we’ve received our Money Services License in Iowa.

Iowa residents can now trade stablecoins on our platform and instantly transfer funds via ACH. pic.twitter.com/sNEFIlCeWY

— BlockFi (@BlockFi) June 28, 2022

“Now Iowa residents can trade stablecoins on our platform and instantly transfer funds via ACH,” the statement said.

On June 14, a local regulator fined BlockFi more than $943,000 for violations of the law. Authorities said the platform “offered and sold securities in Iowa that were not registered or permitted for sale,” and also did not have a broker-dealer or agent license.

Prior to this, the firm had regulatory problems at the state level. Complaints were raised by regulators in New Jersey, Alabama and Vermont.

In November 2021, reports surfaced that the U.S. Securities and Exchange Commission (SEC) initiated an investigation into BlockFi. It later emerged that the company settled the dispute with the SEC and state regulators, agreeing to pay $100 million in penalties.

On June 21, BlockFi signed a memorandum of understanding with the cryptocurrency exchange FTX regarding a a $250 million revolving credit line.

According to some reports, Morgan Creek Digital has taken an interest in a controlling stake in the platform.

In early June, media reports stated that BlockFi was preparing to close a new round of financing at a $1 billion valuation, instead of the previously planned $5 billion. In the same month, CEO Zac Prince announced a workforce reduction of about 20%.

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