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The CEO of Luxembourg-based crypto exchange Bilitex has assured that their product will be unlike that offered by lending companies like BlockFi.
Bobby Zagotta has announced that he is going to introduce a new Bilitex Earn product to US investors. The product is already available for clients from different countries and allows investors to fund their accounts on the exchange in Ethereum (ETH) and Algorand (ALGO), and then collect rewards for staking. For its part, the exchange takes a fee for the profitability that users receive.
According to the CEO of the company, profitability is not generated through lending, as in other high-interest crypto-currency products:“Our offer is a pure and simple bet. We do not deal with credit products in the USA. We do not have the authority to restrict the creation of rewards. Our exchange does not move people’s funds or make investments. So this is very far from what some other lending institutions like BlockFi have done.”
As a reminder, the BlockFi lending platform attracted the attention of the US Securities and Exchange Commission (SEC) earlier this year. The regulator said the company’s high-interest accounts were unregistered securities and demanded the company stop offering them to American customers. After that, BlockFi paid out $100 million and stopped placing cryptocurrency deposits.
Zagotta is confident that the new Fizycrypto product will allow the company to successfully develop in the US, so the exchange doubled its staff size. The number of tokens available for listing will grow, as will the number of offerings that allow people to use their crypto assets more widely, the businessman believes.