Blockfi the Cryptocurrency Backed Lending Platform Has Received Approval to Operate in California
Blockfi has announced that they have received a license approval for its lending platform to begin operating in California; making the service available in 44 states. The company initially raised $52.5 million in investment rounds lead by Michael Novogratz’s Galaxy Digital.
Blockfi is a cryptocurrency lending platform which allows users to get dollars by using their Bitcoin (BTC) or Ethereum (ETH) as collateral. Instead of users selling Bitcoin to raise funds, they will be able to apply for a loan and receive a decision from the firm about the loan terms on the same day. Once approved the user is required to deposit the BTC or ETH into a storage address where Blockfi can transfer the USD to the customer’s bank account. Users of the service can make payments in USD or crypto and can also get their loaned cryptocurrency back after its completion.
The approval of an operating license for California suggests an interest in the US for a crypto-backed lending platform that complies with the relevant regulations. The CEO of Blockfi, Zac Prince, said that ‘security and trust in this space for institutional investors is mission critical’ to their success. Blockfi has chosen Gemini - with its robust security practices and cold storage functionality - for their asset custody.
Prince believes the platform will appeal to individuals and corporations that want access to liquidity without selling crypto. All the while claiming to offer the lowest digital asset-backed loan rates in the US. The firm plans to expand and grow globally making their product as borderless as possible. Blockfi isn’t the only platform offering this with other organisations introducing crypto loans services such as Salt Lending, Coinloan or Ethlend.
We are seeing more crypto-backed loans entering the market as regulations of the space continues. We could see a greater number of institutions use these services to access liquidity instead of cashing out Bitcoin or crypto.
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Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards