By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
CoinLucidCoinLucid
  • All News
  • Bitcoin
  • Ethereum
  • Altcoins
  • Blockchain
  • DeFi
  • Mining
  • NFT
  • Learning
Reading: DFPI of California has ordered MyConstant to stop Providing Lending Services.
Share
Notification Show More
Latest News
why create a smart contract on erc20 more than bep20?
All News Blockchain Create a Token
WHAT IS THE MOST PROMISING CRYPTO IN 2023
All News Altcoins Bitcoin Ethereum
MicroStrategy Continues Aggressive Bitcoin Investment Strategy – Now Holds 152,333 BTC
Bitcoin All News
PEPE Outperforming Other Meme Coins in Crypto Rally: Futures Liquidations Suggest Short Covering
Altcoins All News
Blackrock’s Bitcoin ETF: How It Could Revolutionize the Crypto Market
All News Bitcoin
Aa
Aa
CoinLucidCoinLucid
  • All News
  • Bitcoin
  • Ethereum
  • Altcoins
  • Blockchain
  • DeFi
  • NFT
  • Mining
  • Learning
  • All News
  • Bitcoin
  • Ethereum
  • Altcoins
  • Blockchain
  • DeFi
  • Mining
  • NFT
  • Learning
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 Marketoken All Rights Reserved.
CoinLucid > Blog > All News > DFPI of California has ordered MyConstant to stop Providing Lending Services.
All News

DFPI of California has ordered MyConstant to stop Providing Lending Services.

Ed Miles
Last updated: 2022/12/22 at 2:49 PM
By Ed Miles 3 Min Read
Share
SHARE

California financial regulators have recently ordered online crypto loans platform MyConstant to stop offering some of its crypto-related products in the state. The Department of Financial Protection and Innovation (DFPI) has blocked the platform from offering its flagship lending platform, interest-bearing accounts, and other securities. This decision comes as a result of regulators’ concerns over the safety of customers in the state and their lack of protection when investing in these products. MyConstant has been advised to comply with the order and desist from offering these products in California.

The Department of Financial Protection and Innovation (DFPI) recently filed an action against MyConstant, alleging that the company had been illegally engaging in the business of acting as a finance lender or broker without the proper license. Furthermore, the DFPI also alleged that since 2020 MyConstant has been offering and selling unqualified, nonexempt securities to investors in California through the offering of two interest-bearing products. If the allegations are proven to be true, MyConstant could face serious consequences, including fines and potential criminal prosecution.

MyConstant was a loan brokering service that offered consumer-to-consumer (peer-to-peer) lending. Through its “Loan Matching Service,” MyConstant allowed borrowers and lenders to match up and agree on personal loans, with interest rates ranging from 6% to 9%, depending on the repayment timescale. MyConstant was a useful financial resource for those seeking to borrow money, or for those looking to lend and gain a return on their investment.

The consumer borrowers taking out loans from MyConstant were required to put up capital of 150% of the value of the loan in crypto assets as collateral. It appears that the company was targeting individuals with bad credit and no material assets, as per the filing. Furthermore, the firm allegedly misrepresented the risk of losing their invested capital by claiming it was “very low.” Clearly, this company was taking advantage of individuals who may not have been aware of the risks associated with such loans.

MyConstant’s case was relatively minor compared to the crackdown California regulators had been carrying out on some of the larger players in the space for over a year. In July 2022, the DFPI issued a cease-and-desist order to BlockFi, well before the company had to close withdrawals in November 2022 due to the FTX contagion and later filed for Chapter 11 Bankruptcy. This shows the level of scrutiny California regulators have been placing on the industry, even for a small organization like MyConstant.

You Might Also Like

why create a smart contract on erc20 more than bep20?

WHAT IS THE MOST PROMISING CRYPTO IN 2023

MicroStrategy Continues Aggressive Bitcoin Investment Strategy – Now Holds 152,333 BTC

PEPE Outperforming Other Meme Coins in Crypto Rally: Futures Liquidations Suggest Short Covering

Blackrock’s Bitcoin ETF: How It Could Revolutionize the Crypto Market

TAGGED: dfpi, myconstant
Share this Article
Facebook Twitter Email Print
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article Shaktikanta Das – Indian Central Bank Governor says Crypto should be banned to avoid the next financial crisis
Next Article The U.S. SEC has increased its oversight of the audit services provided to crypto companies
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Telegram Follow

Top 24h Crypto Gainers

NamePriceChanges 24H

Top 24h Crypto Losers

NamePriceChanges 24H

Latest News

why create a smart contract on erc20 more than bep20?
All News Blockchain Create a Token
WHAT IS THE MOST PROMISING CRYPTO IN 2023
All News Altcoins Bitcoin Ethereum
MicroStrategy Continues Aggressive Bitcoin Investment Strategy – Now Holds 152,333 BTC
Bitcoin All News
PEPE Outperforming Other Meme Coins in Crypto Rally: Futures Liquidations Suggest Short Covering
Altcoins All News
//

We provide News and information to understand better the world of Crypto Tokens

Quick Link

  • Privacy Policy
  • Website Terms of Use

Support

  • OUR SITE MAP
  • Write For Us
  • Crypto Heat Map

Register to Our Newsletter

Get the Crypto updates straight to your inbox!

© 2022 Marketoken. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Register Lost your password?