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.
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
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.
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.
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
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.