Crypto Lender Celsius To Stop Paying Interest On New Deposits From US

It’s been just reported that the crypto lender Celsius will stop offering crypto interest accounts to US users at the end of this week.

According to the latest reports, per an April 11 announcement, the crypto lender will transition new deposits from US users to custody accounts.

Critically, those accounts will not pay interest, unless their owners are accredited, investors.

Existing deposits will, however, continue to pay normal interest. It’s been revealed that those interest rates on offer go as high as 18%, with stablecoins paying over 7% returns.

This move is taking place as Celsius, and the competitors like BlockFi and Nexo, have faced increasing scrutiny from the US securities regulators.

The New York Attorney General sent letters to firms that are offering crypto interest accounts in October.

Nexo, which is not based in the United States, cut off new US accounts from earning interest back in February.

Not too long ago, the Celsius Network addressed some interesting predicitons about the price of Bitcoin.

At the end of February, when Bitcoin dropped below $35k, the Celsius Network CEO Alex Mashinsky said that he’s bullish on Bitcoin despite BTC’s brief dip below $35,000.

This is happening amidst heightened tensions between Russia and Ukraine.

During a Kitco News interview, the head of the crypto lending platform says Bitcoin has likely found strong support around the $30,000 price and is now set on an upward trajectory.

“Yes, I think for this [Russia-Ukraine] conflict this is the bottom. We have very strong support at that $30,000 level… We’re going to hold the current levels and go higher.”

Mashinsky also talked about the Bitcoin’s fundamental properties. He said that BTC’s provable scarcity will eventually push its value to greater heights.

“The fact that you have capped supply: there’s never going to be more than 21 million Bitcoin and you have growing demand basically tells you that over a long period of time, the price of Bitcoin is going to increase…”