Kentucky State Bans Celsius From Offering Accounts

The authorities of Kentucky banned Celsius (a crypto lender) from offering any accounts across the state as it offers unregistered securities. The securities regulator working under the state became in line with the other states, which adapted the exact policy. This order was announced by Kentucky’s Financial Institutions’ Department while it claimed that risky services are being provided by the company to its consumers. Specifically, the claim deals with the unregistered securities which have supposedly been provided, causing the state’s law to be violated. The regulators of Kentucky are of the view that no detailed information was provided to the consumers by Celsius following the deposits thereof.

The order and Celsius’s response

As per the order, the company can lawfully arrange an immediate hearing to provide with the previously made decision’s rebuttal. Nonetheless, the conclusive manner of the order discloses a solid reason on behalf of the regulatory authority. They categorized the service as being under the unregulated market, posing an extraordinary risk to the customers. On behalf of the firm, a spokesperson exclaimed that they were disappointed by such actions and did not agree with the order at all. Additionally, Celsius has made it clear that the customers will be continuously provided with the respective services.

Regulations period

Kentucky has provided the latest instance of prohibition over Celsius regarding the account offerings to the citizens among the other USA States. The other states include New Jersey, Alabama, and Texas. Firms dealing with interests accounts of cryptocurrency frequently fall victim to the intensified scrutiny on behalf of federal regulators. In the last month, BlockFi underwent the allegations, and Kentucky was among the states alleging the firm. Earlier this month, a threat had been posed by the securities department to Coinbase-Global Inc., stating that it would file a case against the latest Lend product of the company.

The product will permit the investors to collect capital gains via lending out the cryptocurrency thereof. Nonetheless, before the finalization and launch of the Lend product, the SEC obstructed it by starting an investigation against the company and demanded the particulars of the employees proposing its viewpoint. In parallel to the lawsuit, the department had as well as a waiting list for Lend showing their names. As per a blog post, the product was scrapped by the company soon after.

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