The state of Kentucky banned the crypto lender Celsius from offering accounts within the state due to unregistered security offerings.
The securities regulator for the state followed three other states which carried out the same policy. This emergency order came as the Kentucky Department of Financial Institutions claimed the company provides risky services to consumers. Particularly the claim is of unregistered securities in violation of state law. Kentucky regulators say that Celsius did not provide customers with detailed information on the aftermath of their deposits.
According to the order, Celsius has the right to an emergency hearing for a rebuttal of the decision. However the decisive language of the order reveals a strong stance on the part of regulators. They called the service, “an unregulated market that represents an unprecedented risk to consumers.”