Recently Celsius Network, one of the biggest players in the crypto space, put out a very unfortunate update pertaining to US customers: After April 15th 2022, US-based customers will no longer be able to earn interest on new deposits unless they’re Accredited Investors.
Is it possible to get around this? Yes, and that’s just what this article is about!
So, for those who can utilize the workaround, the first question to ask is this:
What is an Accredited Investor?
Simply put, an Accredited Investor (AI) is an individual or business who has proved that they are “financial savvy” enough to invest in and trade securities that may not be registered with financial authorities.
How do I Become an Accredited Investor?
There’s quite the list of what is considered an Accredit Investor on the SEC’s website which you can find here, however for most it ultimately comes down to meeting one of the following financial criteria:
- Net worth of over $1,000,000, excluding primary residence (either as an individual or with a spouse/partner), OR
- Over $200,000 yearly income ($300,000 with spouse or partner) for the previous two years, with reasonable expectations for the same the following year.
Needless to say, meeting this criteria is not exactly easy for most individuals. Thankfully, it is also possible to become an Accredit Investor by meeting one of the following professional criteria:
- Be an investment professional in good standing with your respective state, which includes holding one of the following licenses:
- General securities representative license (Series 7)
- Investment adviser representative license (Series 65)
- Private securities offerings representative license (Series 82)
So, to put it simply, you need to meet one of those following criteria above. And if you can’t meet the financial criteria, then the professional criteria is really your only option.
Which Professional License Should I Obtain?
Honestly, the Series 65 is likely your best bet. It’s notably tougher than the Series 7, but the Series 7 requires sponsorship, while the Series 65 does not. The Series 82 is also an option, however it is often considered to be tougher than both other exams.
It’ll take some time and dedication, and quite a bit of footwork as it doesn’t quite end once you obtain your Series license (you need to register with the state), but it’s going to be your real only option to become an Accredited Investor if you can’t meet the financial criteria.
How do I Get my Small Business to Become an Accredited Investor?
Entities are required own investments in excess of $5,000,000. Otherwise, if your business cannot meet the financial criteria, as long as all equity owners are Accredited Investors, then your small business will qualify.
Should I Use These “Accredited Investor” Websites to Get Accredited Investor Status?
Unless you can provide the proof to back up whatever letter they give you, no. You risk having your account closed, or worse.
Happy Investing!
Neurotic Finance 