Celsius announces that only transfers from accredited US-based investors can earn rewards

Crypto-lending company Celsius Network has announced that it will launch a custodial solution for users based in the United States in response to discussions with local regulators.

In a Monday announcement, Celsius said its Earn product, which allows users to earn interest on crypto, would not be available to U.S. residents making Friday-to-Friday transfers. According to the company, all coins transferred to interest-bearing accounts before Friday will “continue to earn rewards,” but “new transfers made by non-accredited investors in the United States” will be held in custody accounts.

Only “verified accredited investors” in the US will be able to add coins to their Earn accounts, while not affecting users outside the country. Celsius said the changes to its products were the result of “ongoing discussions with U.S. regulators.” In 2021, some state-level supervisors went ahead with delays and rejected orders against the platform allegedly to offer unlicensed securities with their interest-earning accounts.

“Our industry is going through a paradigm shift,” sei Celsius CEO and founder Alex Mashinsky. “In line with recent regulatory guidance, there will be changes in the way our Earn product will work for users based in the United States.”

Celsius’ Earn accounts were the subject of a hearing announced by the Texas State Securities Board in September 2021, as well as a cease and desist order from the New Jersey Bureau of Securities in connection with “the sale of unregistered securities.” If regulators at state or federal level were to move forward with enforcement actions against the lending platform, Celsius Network and its affiliates Celsius Network Limited, Celsius US Holding and Celsius Lending would likely be affected.

According to the platform, Celsius has approximately $ 23 billion in assets under management as of April 1 and has disbursed more than $ 912 million in revenue and rewards since 2018. The rates for the loan company’s interest-bearing product are up to 18.63% APY for cryptocurrencies, with 7.1% return on many stablecoins.

Related: Celsius becomes the first CeFI or DeFi platform to cross $ 20B AUM

U.S. regulators have also moved against crypto-lending platform BlockFi, with the New Jersey Bureau of Securities and Texas State Securities Board announcing similar enforcement actions in July 2021. in October. Nexo denied involvement at the time, saying it did not offer its Earn Product and Exchange to New Yorkers.


Notice: ob_end_flush(): failed to send buffer of zlib output compression (0) in /home/rvpgmedi/public_html/wp-includes/functions.php on line 5275