Crypto Lender Celsius Halts Interest Accounts for Retail Investors Amid Regulations

By Lauren Claxton April 14, 2022 In Celsius, Crypto News, Regulation

Effective April 15, non-accredited US retail investors will no longer be paid rewards on any new deposits into Celsius interest accounts. The news comes in a statement from Celsius, which also notes that these rules will not impact customers outside the US.

Celsius Prioritises Regulation

The move by Celsius, a leader in centralised finance (CeFi), sees it fall into line with crypto regulations. From April 15, only accredited investors will be able to receive rewards and add new assets to the company’s Earn platform.

The update only applies in the US, and to be considered “accredited” an investor must have a net worth greater than US$1 million or a minimum annual income of $200,000. After April 15, those who aren’t accredited will have their coins held in custody, meaning they can still swap, borrow and transfer, but cannot earn interest.

As we previously have acknowledged, Celsius has been working closely with regulators around the world. It is our intention to be as transparent with our community as possible.

Celsius custody solution statement

Any US non-accredited Celsius users who were intending to use their crypto as loan collateral prior to April 15 will have their assets returned to their account on completion of the loan.

Other Offers and Rates

In March, slashed its return rates on token deposits, its second cut in a month. More recently, digital asset exchange Zipmex launched its ZipUp+ program, which offers Aussies very attractive yield returns. Zipmex is one of the major regulated Australian exchanges and may become even more popular with this new offer as the project allows interest of up to 10 percent APY without a lock-in period.

Lauren Claxton

Lauren Claxton

Lauren is currently a freelance writer with experience in finance writing. She has a growing interest in the metaverse and all things NFTs and expects to graduate in 2022 with bachelors degrees in creative writing and public relations.

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