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Crypto lender Celsius to cease paying curiosity on new deposits from US beginning on Friday

Celsius will cease providing its crypto curiosity accounts to US customers on the finish of this week. 

Per an April 11 announcement, the crypto lender will transition new deposits from US customers to custody accounts. Critically, these accounts won’t pay curiosity, except their homeowners are accredited buyers.

Existing deposits will, nonetheless, proceed to pay regular curiosity. As of at the moment, these rates of interest on supply go as excessive as 18%, with stablecoins paying over 7% returns.

The transfer occurs as Celsius, in addition to rivals like BlockFi and Nexo, have confronted rising scrutiny from US securities regulators. The New York Attorney General despatched letters to corporations providing crypto curiosity accounts in October. Nexo, which isn’t based mostly within the United States, reduce off new US accounts from incomes curiosity again in February.   

Regulators say that by providing curiosity accounts that resemble financial institution accounts however with out the FDIC insurance coverage required of banks, crypto curiosity accounts are literally securities. Lenders like Celsius reply by pointing to the minuscule returns provided by the typical US financial savings account as an issue they’ve managed to resolve. 


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