Bitstamp launches product to earn money on interest rates in the US – Bits Media

The CEO of the Luxembourg crypto exchange Bitstamp assured, that their product will be different, What do lending companies like BlockFi offer?.

Bobby Zagotta (Bobby Zagotta) announced that it is going to introduce a new product Bitstamp Earn to American investors. The product is already is available to clients from different countries and allows investors to finance their accounts on the Ethereum exchange (ETH) and Algorand (SOMETHING), and then collect bet rewards. For its part, the exchange charges a fee for profitability, which users receive.

According to the company's CEO, profitability is not generated through lending, as in other high-interest cryptocurrency products:

"Our proposal is a pure and simple bet. We do not deal in lending products in the US. We do not have the authority to restrict the creation of awards.. Our exchange does not move people's funds or make investments. So it's very far from that, what some other lending institutions have done, such as BlockFi".

Recall, Lending platform BlockFi has attracted the attention of the US Securities and Exchange Commission (SEC) earlier this year. The regulator said, that the company's high-interest accounts were unregistered securities and demanded that the company stop offering them to American clients. BlockFi then paid $100 million and stopped placing cryptocurrency deposits.

Zagotta is confident, that the new Bitstamp product will allow the company to successfully develop in the USA, that's why the exchange doubled the size of its staff. Number of tokens, available for listing, will grow, as well as the number of offers, allowing people to make wider use of their crypto assets, The businessman believes.

Previously, the crypto exchange sent a notification to its clients, which warned of stricter rules to comply with regulatory requirements.