There will be a limit on how many coins a user may add to Earn accounts in the United States beginning on April 15. However, this implementation will not affect users outside the United States.
Crypto lending business Celsius Network has released details of the availability of a custody option for US users. This followed conversations with local regulations.
The Earn product will no longer be available to U.S. citizens beginning Friday for transfers made using crypto. Celsius announced the change on Monday. New transfers that non-accredited investors in the United States made will be held in custody accounts. This advisory came directly from the corporation. In addition, this indicates that any coins moved to interest-earning accounts before Friday will continue to collect rewards.
Celsius Continues to Make Improvements
Only verified and accredited investors in the US will be able to add Earn tokens. Although, this restriction will not affect users outside the country. During the ongoing conversations with United States regulators, Celsius stated the improvements to its products. Moreover, authorities issued cease and desist orders against the platforms that illegally market unregistered securities with their interest-earning accounts. The authorities issue them to the company in 2021.
Celsius CEO and creator Alex Mashinsky said that their sector is going through fundamental upheaval. For users in the United States, they are making adjustments to the Earn product in accordance with new regulatory instructions.
“The selling of unregistered securities” prompted a Texas State Securities Board hearing in September 2021. Moreover, a New Jersey Bureau of Securities issued a cease and desist order for the Earn accounts of Celsius. It is likely that Celsius Network and its affiliated companies Celsius Network Limited, Celsius US Holding, and Celsius Lending would have been subject to enforcement action if state or federal agencies had done so.
Other Crypto Lending Platforms the U.S. Regulators are Against
With assets under administration of around $23 billion as of April 1, Celsius has handed out more than $912 million in dividends and awards. This was since the beginning of 2018. In addition, there are up to 18.63% APY for cryptocurrencies and 7.1% yields on several stablecoins in the interest-earning offering of the loan firm.
Both the New Jersey Bureau of Securities and the Texas State Securities Board have announced enforcement charges against BlockFi in July 2021. BlockFi is also a crypto lending platform. In October, the New York Attorney General’s Office accused Nexo Financial of providing unregistered services. At the time, Nexo denied any connection. It noted that its Earn Product and Exchange were not available to New York citizens.
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