Nexo is leaving the United States, blaming unclear restrictions
The crypto lending platform has announced that it would no longer accept new registrations and will ultimately cease operations for current users.
According to a Dec. 5 blog post, the crypto borrowing and lending platform Nexo intends to progressively suspend operations in the United States “over the following months.” Nexo has claimed that its departure from the United States is “regrettable but essential.”
Nexo said in the article that it has been communicating with U.S. authorities for the last 18 months to identify how to comply with U.S. financial rules. However, no deal has been reached between the firm and U.S. regulators.
“Our decision follows more than 18 months of good-faith conversation with US state and federal officials that has reached a stalemate.” “the business said.
Nexo revealed that it has removed clients from New York and Vermont and halted registrations for the Earn Interest product on its platform in the United States. Additionally, consumers in eight additional states will no longer have access to Earn Interest after December 6, 2022. Existing clients from other states will have access to the product for the foreseeable future.
In recent weeks, U.S. officials have come under fire after the collapse of the FTX cryptocurrency exchange. Some U.S. senators have urged that authorities should be granted more monitoring authority over cryptocurrency exchanges. On the other side, some industry leaders have said that excessive regulation drives U.S. investors to overseas exchanges with more risk.