Biden’s administration has come up with a number of measures in 2022 to ensure cryptocurrency is monitored in a safe and legal manner in the country. The US has emerged as one of the biggest nations which are seeing a rapid proliferation of cryptocurrency users. Contrastingly, there is also pushback from the government in the form of regulating procedures. Similarly, a Cali-based governmental body has issued a set of rules that the crypto lending giant Celsius needs to abide by. The firm which is now trying to recuperate after it went under earlier this year has been asked to instantly terminate all its activities in the state.
The crackdown comes as part of America’s many prohibitive steps being taken against crypto companies on legal grounds. It has been taking action to ensure a stricter adherence to legislation and compliance with the government standards on emerging fintech. Celsius is facing these legally prohibitive obstacles because they are accused of not being transparent with its consumers. They purportedly underplayed the threats about conducting crypto activities on their platform leading to the financial distress of heaps of users. Their fine print was riddled with loopholes that easily pulled the wool over unaware consumers. They were not clear about tenets such as the company not having sufficient strength to bounce back after a particular limit of consumers drawing out. They were also unable to guarantee technological safety from their end and respond to unforeseen needs for drawing out by consumers.
The crypto company is also under fire for allegedly violating many tenets of the state’s legislations surrounding cryptocurrencies. They were not authenticated or greenlit officially by the government to carry out these crypto activities. All of this comes as yet another blow to the company that is still reeling under the aftermath of its collapse.