Celsius Network – Crypto news updates. Bankruptcy, regulation and AML.

During a crypto bull market, everyone seems to be happy. Crypto prices are going up, seems sky is the limit and portfolios are getting bigger and heavier. A perfect time to invest and select a crypto platform or a cryptocurrency exchange for trading, lending and borrowing.

But, what can really happen during a bear market, where everything is taking the downhill, and it seems that there is no stop?

One of the latest ‘victims’ of the crypto dramatic downfall was Celsius, a well known cryptocurrency borrowing and lending platform, while offering at the same time great interest percentages for certain crypto coins in regards of staking and passive income strategies.

3 weeks ago, Celsius halted all withdrawals due to “extreme market conditions” (the Terra-Luna effect and most probably a wide exposure to the 20% interest given there), while the company is said it had 1,7 million clients as of June 2022.

The company’s filing of bankruptcy was the next logical step, and the $167 million “in cash on hand” will support current operations during this tough restructuring procedure.

As per the official bankruptcy filing, the company owes around $4,7 billions to its clientele.

Needless to state, there are many voices out there claiming that cryptocurrencies and all companies involved in this industry should be finally regulated. Heavily and strictly regulated.

Even some crypto exchanges want to be regulated. But, will this be the solution to the problem?

Crypto introduced to the people as means of “freedom of the traditional banking system”, offering financial freedom far away of the traditional system.

On the other hand, regulation is the first step moving to the traditional banking system, while at the same time anti-money laundering practices need to be applied.

During the years before cryptos, money laundering was a phenomenon with several practices which was indeed happening via banks, real estate, etc using all available “holes” of the traditional finance and banking procedures.

Will crypto and its regulation really change the finance world?

Or it will be one more excuse or an obstacle towards mass adoption?

Time will tell...