Only accredited investors and individuals who currently have coins on the Receive platform will be eligible to earn incentives in the United States.
Effective Friday, cryptocurrency lender Celsius will prohibit new transfers from unaccredited investors on its US platform from collecting incentives via its loyalty program.
On April 15, the business announced, that only “accredited” US investors would be allowed to upload new assets and receive incentives on Celsius’ Earn platform. To be considered accredited in the United States, investors must earn a minimum of $200,000 per year or have a net worth of at least $1 million.
The business said that all current United States users – authorized or not – would continue to earn rewards as long as the coins are in their Earn account before April 15.
Those who are judged unaccredited will have their coins kept in custody, where they will not receive rewards but will be able to exchange, borrow, and transfer their coins inside their custody accounts, depending on their local jurisdiction.
“As we have said, Celsius has been collaborating extensively with authorities worldwide. “It is our desire to be as truthful as possible with our community,” the firm said Tuesday in a blog post. “More precisely, we have been in contact with US authorities over our Earn product. As a consequence, the way our Earn product works for consumers situated in the United States will change.”
Users in the United States who pledge coins as collateral for a loan originated before April 15 will have their assets restored to their accounts when the loan is repaid, the business noted.
The business is now under investigation by authorities in multiple states in the United States on claims that its loan and earn program violate securities laws.
CEL, the Celsius Network’s native token, is now trading for $2.62, down from $2.69 24 hours ago, according to Messari.