Celsius remove bonuses for non-credited US investors

Reward platform Celsius has agreed to stop paying rewards on any new deposits to non-accredited US investors.

Over the last year, there has been a focus on crypto reward platforms like BlockFi and Celsius, especially by US and state regulators.

The new rules apply from Commencing April 15 but will not affect non-US customers, and accredited investors will continue receiving rewards as normal.

Non-accredited customers’ assets will still be eligible for rewards that are held by Celsius only.

In regards to Celsius’ business model whereby customers store their crypto assets within the company and in return earn interest in coins and tokens, the change will see the company take a hit as its loans have previously pooled tokens out at higher rates to its borrowers.

For example, Celsius offers annual returns of more than 7% on stablecoins like Tether and USDC, 5.5% for Solana and 3% and above to wrapped bitcoin (BTC).

New Jersey, Alabama and Texas have accused Celsius and its competitor BlockFi of offering unregulated securities. Several other state securities regulators have also voiced the same opinion.

Regulators including the US Securities and Exchange Commission (SEC) treat high-interest accounts as similar to those securities. Recently, Kentucky became the fifth state to have ordered BlockFi to accept registrations for its interest accounts.

In February, after failing to register its BlockFi Interest Accounts, the company settled with three states and the SEC for a total of $100m, however they did not deny or admit the SEC’s charges.

Celsius seems to be taking a route not dissimilar to that of BlockFi, however, it won’t be slammed with a $100m settlement.

You can use digital currencies at numerous digital casinos, including 1xBit, FortuneJack and Bitcasino.io.

 

 

Source

Updated: 04/13/2022 — 10:00