I saw an interview with the celsius CEO and he claims that they are able to give higher interest because they keep less of the profits from lending out money than the banks etc..
The thing is that the crypto related legislation is incomplete or even missing in many countries. Crypto is very easy to lose and in many cases one will not be able to clearly prove it was a hack or it was an inside job.
This being said, most won't risk their investment for some extra cents, especially as bitcoin itself gives much bigger returns that one could dream of.
Is this the future of financial system? Maybe. But we're not there yet. Don't forget that before a nice calm U.S. of A. there was the wild-wild-west...