Due to potential breaches of state securities law, the California Department of Financial Protection and Innovation (DFPI) has <a href="https://dfpi.ca.gov/2022/12/21/dfpi-orders-myconstant-to-cease-offering-crypto-related-products/" target="_blank" rel="nofollow noopener">directed</a> the <a href="https://www.cryptoknowmics.com/news/amber-group-acquires-300-million-via-fundraising">cryptocurrency lending</a> platform MyConstant to stop marketing many of its cryptocurrency-related products like crypto loans.
<h2>MyConstant Ordered to Cease Services Like Crypto Loans</h2>
According to a news statement from the DFPI published on December 21, MyConstant has been told to immediately cease and stop providing its peer-to-peer loan facilitating service and interest-bearing <a href="https://www.cryptoknowmics.com/news/uk-government-amends-finance-regulatory-bill-to-add-new-crypto-rules">cryptocurrency asset</a> accounts, both of which it claims violate the California Securities Law and California Consumer Financial Protection Law.

The DPFI claimed that MyConstant's providing and selling its peer-to-peer loan business, known as Loan Matching Service, breaches one of the state's financial regulations.
<h2>Participation in Unlicensed Loan Brokering</h2>
Additionally, it claimed that MyConstant participated in "unlicensed loan brokering" by encouraging lenders to make loans without the necessary authorizations.

The regulators also objected to the cryptocurrency lender's predetermined interest-beating crypto-asset offerings, which required customers to deposit crypto assets such as <a href="https://www.cryptoknowmics.com/news/truelayer-to-support-coinbase-payments-and-focus-on-stablecoins">stablecoins</a> and <a href="https://www.cryptoknowmics.com/news/uniswap-and-moonpay-collaborate-to-enable-users-to-buy-crypto-with-fiat">fiat</a> in exchange for a guaranteed fixed yearly percentage return on their investment.
<h2>Breach Regulations Under DFPI</h2>
It stated that in these instances, MyConstant issued and traded non-exempt, unqualified securities. The regulating body declared in July that it was looking into several providers of cryptocurrency interest accounts to see if they were breaching regulations under the Department's authority.

In a press statement on December 5, DFPI first revealed that it was looking into MyConstant. It further claimed that MyConstant was not licensed by DFPI to conduct business in California.

California Authorities Urge MyConstant to Stop Offering Crypto Loans

California Department of Financial Protection and Innovation (DFPI) has directed MyConstant to stop marketing its products like crypto loans.

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California Authorities Urge MyConstant to Stop Offering Crypto Loans

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