Celsius will stop signing new deals for crypto borrowers from the US this weekend. All U.S. users can no longer make new deposits for the purpose of earning passive income.

Crypto interest

Celsius is one of the industry’s best lenders. Crypto owners can deposit their money in the company and then receive interest.

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However, this does not apply to US users Not anymoreThe cryptocurrency lender will automatically transfer the new deposit from US users to a security account instead of a savings account. Its main feature is that Celsius can do nothing but keep these coins safe.

Importantly, those accounts do not pay interest unless their owners are authorized investors.

Normal interest is still paid on all deposits in current contracts. Currently it is about 5% in Bitcoin.

The effects?

This move is not entirely surprising. The US Securities and Exchange Commission has already stated several times that all of these do not apply to existing rules.

For example, the New York Attorney General in October sent letters to companies that pay interest on crypto accounts. Nexo, which is not based in the US, closed its doors in February to US customers seeking to earn interest.