Only Transactions Via Qualified US-Based Investors Would Indeed Become Eligible For Bonuses According To Celsius

• Celsius has around $23 billion in assets under management as of April 1, according to the platform, and has paid out more than $912 million in yield and awards since 2018. For cryptocurrencies, the lending firm’s interest-earning offering has rates as high as 18.63 percent APY, with 7.1 percent yields on several stablecoins.

• The New York Attorney General’s Office accused loan company Nexo Financial of providing unlicensed services. Nexo denied involvement at the time, claiming that its Earn Product and Exchange were not available to New York citizens.

• Celsius announced on Monday that its Earn programme, which allows users to earn interest on cryptocurrency, will be unavailable to U.S. residents starting on Friday. Any coins moved to interest-earning accounts before Friday will continue to earn rewards.

Beginning on April 15, only certified accredited investors in the United States will be allowed to add coins to their Earn accounts, while users outside of the country will be unaffected. In response to negotiations with local regulators, crypto lending firm Celsius Network has announced the availability of a custody option for users based in the United States.

Earn Interest On Cryptocurrency

Celsius announced on Monday that its Earn programme, which allows users to earn interest on cryptocurrency, will be unavailable to U.S. residents starting on Friday. Any coins moved to interest-earning accounts before Friday will continue to earn rewards, according to the company, but new transfers made by non-accredited investors in the United States will be held in custody accounts.

Only certified accredited investors in the United States will be allowed to add coins to their Earn accounts; users outside of the United States would be unaffected. The revisions to Celsius’s goods were the result of ongoing negotiations with US regulators, according to the company. Some state regulators issued cease and desist orders against the site in 2021, alleging that it was marketing unregistered securities through its interest-earning accounts.

Our industry is undergoing a paradigm transition, stated Alex Mashinsky, CEO and founder of Celsius. In accordance with new regulatory guidance, we will be making adjustments to our Earn product for users in the United States.

In September 2021, the Texas State Securities Board announced a hearing on Celsius’s Earn accounts, as well as a cease and desist order from the New Jersey Bureau of Securities linked to the selling of unregistered securities. Celsius Network and its affiliates Celsius Network Limited, Celsius US Holding, and Celsius Lending would have been impacted if state or federal regulators had pursued enforcement action against the lending platform.

Celsius Has Around $23 Billion In Assets Under Management

Celsius has around $23 billion in assets under management as of April 1, according to the platform, and has paid out more than $912 million in yield and awards since 2018. For cryptocurrencies, the lending firm’s interest-earning offering has rates as high as 18.63 percent APY, with 7.1 percent yields on several stablecoins.

BlockFi, a crypto lending platform, has also been targeted by US regulators, with the New Jersey Bureau of Securities and the Texas State Securities Board launching identical enforcement measures in July 2021. In October, the New York Attorney General’s Office accused loan company Nexo Financial of providing unlicensed services. Nexo denied involvement at the time, claiming that its Earn Product and Exchange were not available to New York citizens.

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Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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