Celsius Holdings Inc., the cryptocurrency app-based financial services company, has been experiencing regulatory delays in its attempt to build a full-fledged investment banking platform.
A report by Reuters claims that the U.S. Securities and Exchange Commission (SEC) has been hindering Celsius’ quest; the agency has been reportedly “pushing back” on the company’s plans to expand its services.
Celsius had announced earlier this year its goal to become a specialist in Bitcoin-based banking with the introduction of new products like mortgage, auto and student loans, and deposits accounts. Celsius had also sought investment bank licenses in several U.S. states, but the regulatory clarification needed from the SEC has been more challenging than anticipated and has caused delays.
Celsius has been largely focusing on the cryptocurrency market and has added a number of cryptos to its services since it was founded in 2017. Moreover, it has acquired smaller players in the cryptocurrency-related fields, the most notable being the privately-held Trustology, which holds a crypto-asset custody license.
Meanwhile, Celsius CEO Alex Mashinsky recently commented that the company is taking a more “cautious” approach in its plan to expand its services amid regulatory uncertainty. Mashinsky also admitted that it has taken longer to acquire the licenses it sought due to the SEC’s lack of transparency.
It remains unclear when the SEC will provide the final necessary guidance, but it’s likely that Celsius will remain a niche player in crypto-banking until then.