Several US State Regulators Crack Down on Voyager Digital

Canada-listed Voyager Digital (TSX: VOYG) confirmed on Wednesday that several state regulators in the United States are scrutinizing its services for offering interest-bearing cryptocurrency accounts.

According to the cryptocurrency company, it has already received or is expecting to get cease and desist orders from the financial supervisors of Indiana, Kentucky, New Jersey and Oklahoma. Additionally, the state securities division of Alabama, Texas, Vermont and Washington have issued show-cause orders to the company.

All of these orders are asserting that Voyager Earn Accounts fall under the category of security and investment contracts, thus violating the state securities regulations.

However, Voyager is convinced that its offerings are not securities and is intending to defend its position. “Voyager supports appropriate regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term and will do its best to demonstrate to these regulators that Voyager has complied with the law,” the company stated.

Though Voyager is still seeking further clarification on all of the regulatory orders, it pointed out that a few of them would prohibit it from offering interest-bearing crypto accounts, while three of them are seeking monetary penalties.

“It is Voyager’s expectation that most of these state orders will provide a transition period prior to becoming effective,” the company added.

US Regulators against Crypto Lending Platforms

The crackdown of the US state regulators against crypto lending Crypto Lending The process of lending cryptocurrency assets with an accrued interest rate and due date is known as crypto lending. The process of crypto lending often occurs through cryptocurrency exchanges or online lending platforms to connect borrowers to lenders. Lenders of crypto lending are comprised of institutional lenders, like hedge funds and asset managers, individual participants, or entities seeking to accrue interest. On the opposite end of the spectrum, borrowers of crypto lending include market The process of lending cryptocurrency assets with an accrued interest rate and due date is known as crypto lending. The process of crypto lending often occurs through cryptocurrency exchanges or online lending platforms to connect borrowers to lenders. Lenders of crypto lending are comprised of institutional lenders, like hedge funds and asset managers, individual participants, or entities seeking to accrue interest. On the opposite end of the spectrum, borrowers of crypto lending include market Read this Term platforms is not new. Before, several state regulators issued similar orders against popular platforms like BlockFi and Celsius, alleging violation of state laws.

An earlier media report even revealed that the US federal financial market supervisor, the Securities and Exchange Commission, is probing the offerings of several crypto companies, including Voyager Digital.

Furthermore, BlockFi became the first of these companies to settle with these federal and state regulators, paying $100 million and agreeing to several conditions like suspension of adding new US accounts.