The Celsius Network, one of the biggest crypto lending platforms, has listed the SGA stabilized asset from Saga, giving its SGA token holders the possibility to earn interest.
This means users can preserve their assets’ value by using the SGA stabilization mechanism and in the meantime earn an attractive interest through Celsius. While Saga says the SGA is a stable asset, it doesn’t call it a stablecoin. The SGA has value according to a global currencies’ basket. It’s based on blockchain and gets its price from the SDR asset, which is backed by many currencies and was developed in 1969 by the International Monetary Fund (IMF).
What’s with the SGA Holders Earning Interest?
Ido Sadeh Man, the founder of Saga, said the Celsius SGA listing lets holders of the token to earn 9.9% APR interest. He also mentioned the collaboration is a vote of confidence for the global visions of Saga and the startup itself. In addition, SGA holders will be able to borrow against the SGA they’re holding at 3.45% interest rates, if their assets are being used as collateral.
Regulations Are in Place, Just Like with Facebook’s Libra
Of course, regulations are in place with the SGA, just as they are with Facebook’s Libra. Here’s what Man had to say about this:
“Compliance is a central pillar of Saga. It’s why, when we couldn’t find an onboarding program to satisfy our rigorous KYC procedures, we built our own.”
The parameters at Saga are fitted for the EU’s 5th Anti-Money Laundering Directive (5AMLD), the incomplete compliance with the US regulations being the reason why the company doesn’t operate in this country, Man mentioned.
Regulatory Compliance Important for the Expanding of Crypto Usage
Man added that regulatory compliance is very important when it comes to expanding the use of crypto. Here are his exact words on how Saga is operating in the UK:
“We selected the U.K. as our country of legal registration thanks to the regulator being open to building up a dialogue around how we can safely and legally implement cryptocurrency. We are proud that we have been in full operation since December 2019 and have not met with any legal challenges in this time.”
Many cryptocurrencies have had problems with regulations in the past 3 years. Crypto solutions seem to no longer have a way out when trying to defer government compliance, so they’ll have to respect regulatory demands sooner or later.
Like what you read? Give us one like or share it to your friends