Celsius is a cryptocurrency lending platform that allows investors to stake their tokens and earn yield. In some ways, the process of cryptocurrency staking is similar to the savings account option, but the yields generated from crypto staking are usually higher in comparison to traditional banking enterprises.
According to the latest notification issued by Celsius management that is using the service within the United States would have to comply with the new rules. Starting from the new date, only accredited investors and those who have already staked their coins can now qualify for staking rewards. The existing staking positions will remain intact, whereas any new unaccredited staking positions will not be allowed.
New Guidelines for Staking Users
According to the latest notification by the management of Celsius, only accredited investors will be able to stake their crypto reserves to earn yields. The company also declared that any investor that has an annual income of $200,000 or carries a net worth of $1 million could pass as an accredited investor.
Those who have their coin reserves already added to the Earn account before the 15th of April will also qualify for earning yields. The timeline also allows non-accredited investors to get a chance to get listed. Meanwhile, after the deadline, if any non-accredited investor tries to put their tokens into the Earn Reserve, their reserves will be held in a custodial account that will not generate any yields. Furthermore, these investors will still be able to trade, lend, and shift their reserves to other local ecosystems.
The new changes are part of the Celsius plans to increase their probability of getting easier approval from the financial regulators around the world. The company recently announced that it is planning to make its financial proceedings as transparent as possible. The company said in a recent blog post that the US regulators are currently researching its Earn product.
The users of Celsius that wish to use their coins as collateral for lending purposes will see their reserves returning to them as soon as the loan is paid off. It is worth mentioning that the company is currently facing legal screening by the financial watchdogs, including allegations like a violation of the Securities Act. CEL token native to Celsius is trading for $2.62 at press time.