The news comes against amid a campaign by U.S. state and federal regulators to closely scrutinize or clamp down on crypto lending platforms. Five state regulators have moved to take similar action against BlockFi, one of Celsius’s main rivals.
In its order concerning Celsius’s accounts, which promise high-interest rates but without the protections of regulated bank accounts, the Kentucky Department of Financial Institutions said that the product exposes consumers to “unprecedented risks.”
The regulator also stated that Celsius is, in its view, “offering securities in the form of investment contracts in exchange for the deposit of assets with the company.”
Leading crypto exchange Coinbase recently ditched its plan to roll out a lending product after a very public tussle with the Securities and Exchange Commission. The SEC is said to have expressed the view that the product would fall under the definition of a security.
The Block Research was commissioned by Forte to create “Blockchain-Based Gaming: A Primer” which provides a comprehensive introduction to how blockchain technology is being employed in video gaming experiences.