DFPI Bans MyConstant from Providing Cryptocurrency Lending Services

California's financial regulator has ordered cryptocurrency lending platform MyConstant to stop providing services due to alleged violations of state securities law. The California Department of Financial Protection and Innovation (DFPI) has issued an official warning to MyConstant to “refrain from offering its brokerage services for peer-to-peer loans and accounts with interest-bearing cryptoassets.” DPFI says MyConstant is engaged in “unlicensed loan brokerage”. According to the regulator, the platform encourages lenders to provide loans without a license, as well as provide peer-to-peer lending services that violate the state's financial code. The regulator determined that these services did not comply with the requirements of the Securities Act and the California Consumer Financial Protection Act, and therefore ordered MyConstant to stop offering them in California. Earlier, the DFPI announced the suspension of the license issued to the cryptocurrency lender Salt Lending to carry out financial activities in the state.