The California Financing Law prohibits any person from engaging
in the business of a "finance lender" without a license
from the Department of Financial Protection & Innovation. Cal.
Fin. Code§ 22100(a). The CFL provides that a
"'finance lender' includes any person who is
engaged in the business of making consumer loans or making
commercial loans". Cal. Fin. Code §22010(a). The statute
further explains that "may include lending money" and
taking security. Id.
InJeong v. Nexo Cap. Inc., 2022 WL 3590329 (N.D. Cal.
Aug. 22, 2022), the plaintiff predicated an unfair competition
claim on the alleged failure of the defendant, Nexo Capital, Inc.,
to obtain a license under the CFL. In seeking dismissal,
Nexo argued that
"the CFL defines 'money' as 'a medium of exchange
that is authorized or adopted by the United States or a foreign
government', Cal. Fin. Code § 2003(p), but Plaintiff fails
to plead his loan was in 'money,' rather than a non-fiat
currency 'stablecoin' like
