Lending Firm Nexo to Leave US, Cites Lack of Clear Regulation

December 6, 2022

MCP News Free

Lending Firm Nexo to Leave US, Cites Lack of Clear Regulation

Amidst the regulatory difficulties in the US, crypto lender Nexo has suspended operations in the US according to a release on Monday.

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Nexo Suspend Operations in the US

According to Nexo, the decision to suspend operations in the US came after several months of good-faith dialogue with the US state and federal financial regulators.

Today we are announcing the regrettable but necessary decision that Nexo will be phasing out its products and services in the United States due to a lack of regulatory clarity. ????
— Nexo (@Nexo) December 5, 2022

Even though the financial watchdogs have been changing positions and are inconsistent, Nexo has “engaged in significant ongoing efforts to proactively modify its business in response to their concerns.”

“Our decision comes after more than 18 months of good-faith dialogue with US state and federal regulators which has come to a dead end,” the company said. “It is now unfortunately clear to us that despite rhetoric to the contrary, the US refuses to provide a path forward for enabling blockchain businesses and we cannot give our customers confidence that regulators are focused on their best interests.”

In the blog post, Nexo announced the off-boarding of customers from New York and Vermont, the firm has also halted further registrations for the Nexo Earn Interest product in the US, furthermore, from December 6, customers from eight other states in the US will no longer be able to access the firm’s Earn Interest product.

Recently, the US regulators have been under heavy criticism, especially after the collapse of one of the world’s leading cryptocurrency exchanges FTX with many prominent individuals calling for a clear regulation of crypto for consumer protection in the crypto industry.

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