Celsius and Do Kwon partnership with Avenir Capital raises questions amid Bank of Japan’s regulatory concerns

02/17/2023 13:00 • Tech Ticker • 150 views

12:00-21:00 Key words: Celsius, Do Kwon, Avenir Capital, Bank of Japan

Overview of important developments in the evening of February 17

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Do Kwon, the founder of Terraform Labs, recently announced Celsius’ collaboration with Avenir Capital, one of Australia’s premier asset managers with over $4 billion in assets under management. Celsius, a crypto lending and borrowing platform, has been expanding recently, raising concerns from regulatory authorities, including the Bank of Japan. The partnership between Celsius and Avenir Capital is aimed at providing services to Avenir’s clients, including a yield generation platform for those looking to earn interest on their digital assets.

The message suggests that Celsius’ partnership with Avenir Capital may raise questions among regulators, who are already concerned about the company’s rapid expansion in the crypto lending and borrowing market. Celsius’ business model allows users to earn interest on their cryptocurrency holdings while the company lends out these assets to other users, with the aim of generating returns. Celsius has been growing rapidly, with its user base increasing from 10,000 to over 900,000 in the past year.

The partnership may also raise questions about Avenir Capital’s commitment to responsible investment, as it enters into a partnership with a company that is not yet fully regulated in some countries. Celsius has been criticized for its lack of transparency regarding its lending practices, and for not providing adequate information for users to make informed decisions about their investments.

The involvement of Do Kwon, a prominent figure in the cryptocurrency world, is also noteworthy. Do Kwon is the CEO of Terraform Labs, the company behind the Terra blockchain network. The partnership with Celsius may signal a larger push by Avenir Capital into the blockchain and cryptocurrency space, as digital assets continue to gain traction in the financial sector.

The Bank of Japan’s regulatory concerns around crypto lending and borrowing may also play a role in the partnership between Celsius and Avenir Capital. The Bank of Japan has expressed concerns about the potential risks associated with these activities, including money laundering and terrorist financing. As a result, the Bank of Japan has taken steps to regulate the crypto lending and borrowing market, including requiring companies to register with the Financial Services Agency.

In conclusion, the message suggests that Celsius’ partnership with Avenir Capital may raise questions about responsible investment and regulatory concerns, as well as signal a larger push into the blockchain and cryptocurrency space by asset managers such as Avenir. The involvement of prominent figures such as Do Kwon underscores the growing interest in digital assets by traditional financial institutions.

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