In brief
- Crypto lending and borrowing platform Celsius has shut down its UK operation, citing "regulatory uncertainty."
- The company has closed registration for new UK users and will relocate its business operations to the U.S.
The team behind crypto-earning app Celsius has announced that the company’s business operations in the UK are shutting down. The company said that regulatory uncertainty surrounding cryptocurrencies was a key driver for the decision.
The post indicated that business operations would be moved to the United States, but it is unclear in which state Celsius will base its operations.
Celsius is a lending and borrowing platform that lets users earn up to 13% on certain crypto holdings. The interest rate increases if users opt to earn their interest in Celsius’ native token, CEL. Though its services resemble those of a traditional bank, the company is not insured by any government body nor a private insurer.
Crypto Firms Mull UK Exit Amid Regulatory ‘Logjam’: CryptoUK Chair
UK crypto firms are considering packing their bags amid a regulatory 'logjam' from the FCA, according to Ian Taylor, chair of crypto-asset trade association CryptoUK. Speaking at a panel on regulation hosted by blockchain analytics firm Merkle Science, Taylor said that, "It’s at that point now where the risk is of companies leaving the UK, we’re hearing this quite a lot. It makes the UK not an attractive place to do business if you’re in the fintech sector." "A burning issue for our members is...
Per yesterday’s announcement, the company also revealed that it would withdraw its temporary registration application with the Financial Conduct Authority (FCA). The British regulator ordered cryptocurrency businesses to register in 2020, setting a January 2021 deadline. Due to the pandemic and a large number of applications, the FCA extended this deadline and established a “Temporary Registration Regime.”
Celsius fell into this category, a sort of regulatory limbo—that is, until yesterday when it shut shop and pulled its application.
Celsius pulls FCA registration
Celsius will instead focus its efforts on "securing licenses and registrations in the U.S. and other jurisdictions that will ensure the long-term viability of Celsius and its community," the company said.
Users in the UK who are already signed up with Celsius may reportedly continue to use the services.
More UK Citizens Confident Investing in Crypto: FCA Survey
According to the latest research by the Financial Conduct Authority (FCA), cryptocurrency users in Great Britain are growing in numbers and appear to be more confident in crypto as an alternative investment vehicle. The survey, conducted in January 2021 among 2,568 respondents nationwide, has shown that 78% of the adult population in the UK has heard of crypto–a significant increase from 43% in 2019 and up a further 5% in 2020. The number of users that own crypto is also on the rise as 5.7% o...
The company has, however, closed registration for any new users. The company will also be updating its terms and conditions to reflect its move to the United States. Those looking to continue to use Celsius, will need to approve the updated terms and conditions, according to the company. It is unclear when these updates will be made.
Yesterday, the FCA issued another warning to any firms that had not yet registered with the regulator.
They went on to cite a total of 111 crypto companies that “are clearly doing business in the UK without being registered,” with the head of oversight taking the opportunity to remind investors that cryptocurrencies have “tulip mania written all over it.”
