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June 10 – As expected, the Bank of Canada kept its benchmark interest rate unchanged at 2.25% today. In its statement, the Bank of Canada noted that economic activity remained weak after a surprise 0.1% annualized decline in GDP in the first quarter (the third contraction in the past four quarters). The Bank of Canada avoided using the term "recession." The bank expects GDP to return to growth in the second quarter, "but even with some rebound, the economy is expected to remain in a state of overcapacity." Economists said that overcapacity (or economic slack) should help curb inflationary pressures.June 10 – The Bank of Canada kept its main interest rate unchanged on Wednesday, in line with market expectations, and stated that there is currently no sufficient evidence that rising energy prices are driving broad-based inflation. Bank of Canada Governor Macklem reiterated that the bank would not hesitate to raise interest rates to control inflation if necessary. Wednesdays decision marks the fifth consecutive time the Bank of Canada has kept its main policy rate at 2.25%, as several factors have complicated the economic outlook. The war in Iran has caused gasoline prices to soar, putting pressure on household budgets, although Canada, as a net exporter of crude oil, has benefited from increased revenue. The central bank stated, "To date, there is no sufficient evidence that high energy prices have been widely passed on to other consumer prices. The Governing Council will continue to ignore the short-term effects of the war on overall inflation, but will not allow rising energy prices to develop into persistent inflation."US Senate Majority Leader Thune: Trumps nomination for Director of Intelligence will be a major decision.US Senate Republican Leader Thune: Most Republican senators want to complete the mission in Iran.The Bank of Canada will announce its interest rate decision in ten minutes.

California’s DFPI Investigating Multiple Crypto Lending Companies

Jul 14, 2022 14:28

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The California Department of Financial Protection and Innovation (DFPI), which regulates the activities of state-licensed financial institutions such as banks and premium finance businesses, has announced that it is investigating whether businesses that suspended customer withdrawals and transfers broke any laws.


More specifically, the government is looking at a number of cryptocurrency businesses with U.S. headquarters after some reputable lenders permanently stopped allowing transfers and withdrawals between user accounts.

Accounts for crypto assets that pay interest

In particular, the Department of Financial Protection and Innovation is concentrating on "multiple companies" that provide customers with interest-bearing crypto asset accounts, also known as crypto-interest accounts, as well as service providers who "may not have adequately disclosed risks customers face when they deposit crypto-assets onto [lenders'] platforms."


To ascertain if they are breaking any laws that fall within the purview of the Department is the main goal of the inquiry.


The DFPI previously emphasized that providers of crypto-interest accounts are not subject to the same regulations and safeguards as banks and credit unions, which is particularly concerning in light of some platforms' restrictions on customers' ability to withdraw money from and transfer funds among their accounts.


Because of this, the agency has advised customers to proceed with "great care" before answering any inquiries about investments or financial services.


Also pointing to two cease and desist orders it recently sent to BlockFi and Voyager Digital to suspend their sales in California, DFPI has shown how certain crypto-interest account providers have been promoting unregistered securities.

securing customer property

Following Voyager Digital, the second well-known cryptocurrency business to file for Chapter 11 bankruptcy in recent weeks, DFPI made its statement. The Toronto-based company calculates that it has between $1 and $10 billion in assets, over 100,000 creditors, and liabilities of the same amount.


According to Voyager Digital, the action is a part of a "Plan of Reorganization" that intends to provide customers access to their accounts once again. Customers will have the option of receiving cryptocurrency, money recovered from Three Arrows Capital, common shares in the newly reorganized business, and Voyager tokens.


Due to worries about liquidity, Celsius (CEL) has stopped withdrawals and transfers since June 12. There are rumors that the management of the firm has been discussing Chapter 11 bankruptcy with attorneys.


As it faces with the potential of bankruptcy, the business is presently seeking restructuring guidance from the advising firm Alvarez & Marsal.


Additionally, the turbulent market circumstances last week caused the Singapore-based cryptocurrency platform Vauld to stop operations. The business instantly halted all trading, deposits, and withdrawals, and said that, up until further notice, it would only accept client deposits for its collateralized loans product.


Currently, numerous platforms have had client money frozen for many weeks while the future of their depositors' assets is still unknown.


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