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On April 20th, amidst increased uncertainty due to the Iran war, Bank of Japan Governor Kazuo Ueda, after attending an IMF meeting, did not commit to an April rate hike in advance, but still released some hawkish signals, suggesting that a June rate hike, if not this month, remains a possibility. While market attention focused on his lack of explicit indication of an April rate hike, Ueda did not downplay the possibility, emphasizing the need to closely monitor the situation in the Middle East and its impact on the Japanese economy. Three sources familiar with the Bank of Japans thinking indicated that, with both possibilities remaining, policymakers might hesitate until the last minute to decide whether to raise rates at the April 27-28 meeting, depending in part on the progress of negotiations to end the war between the US and Iran. The sources stated, "Given the high degree of uncertainty, it is too early to make a decision now regarding the policy meeting more than a week from now."On April 20th, Tesla China reported that when Tesla Vice President Wang Hao was asked about robots at a media event on April 14th, he only discussed that Teslas Shanghai Gigafactory has excellent large-scale production capabilities and great potential for the future. "Currently, Tesla has no specific plans to mass-produce robots at the Shanghai Gigafactory. Please do not describe in reports that Tesla is about to mass-produce robots in Shanghai; this is incorrect information," Tesla China stated.Hong Kong-listed Qunhe Technology (00068.HK) continues its upward trend, currently up nearly 40% to HK$25.96.On April 20, according to a report by RIA Novosti, Russian Deputy Foreign Minister Grushko stated that the Russian military will consider Frances plans to deploy nuclear weapons in non-nuclear European countries when updating its list of priority targets in future conflicts. In an interview, Grushko said that France has announced the possibility of dispersing its nuclear forces to non-nuclear European countries, a point that requires special attention. In the event of a serious conflict in the future, Russia will closely monitor this situation when updating its priority military targets.On April 20th, the highest 7-day annualized yield of Tencent Wealth Managements "Current Account +" was 1.3710%, and the lowest was 0.8730%. The highest 7-day annualized yield of WeChat Pays "Lingqian Tong" was 1.0900%, and the lowest was 1.0040%. The highest 7-day annualized yield of Alipays "Yuebao" was 1.1700%, and the lowest was 1.0010%.

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.