Crypto Lender Nexo Bids Adieu To The US Market
- Nexo is leaving the US market and new user registrations have been stopped.
- The crypto lending platform has been in conversation with US officials for about 18 months regarding the same.
- The London-based firm states that the it is leaving US due to “confusing and contradictory US regulatory regime.”
- The access to Earn Interest Product will be shut off on December 6, 2022 for 8 US states including Kentucky and Maryland.
Popular crypto lending platform Nexo (NEXO) has said goodbye to the US market, and the users in the country will gradually be kicked off the platform in the near future. The firm cited the lack of regulations and related policies in the world’s biggest economy as the reason for exiting the nation and also revealed that it will no longer be accepting new registrations from the users in the region.
“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,” stated Nexo in a Twitter post on December 5.
According to the follow-up Twitter posts, the crypto lender has worked hard to operate the “right way” on a global scale since its inception in the year 2017 by Antoni Trenchev, Georgi Shulev, and Kosta Kantchev. The London, England-based firm has made a name for itself following the surge in the popularity of crypto lending platforms in 2021 crypto market bull run.
Nexo stated that regulators were positive and optimistic when it came to the platform’s efforts and cooperations. The firm added that “a sustainable path forward seemed viable, but recent events and the subsequent change in regulators’ behavior point to the opposite.” Interestingly, the crypto lending platform and the US government and officials have been having dialogues about the same for over 18 months.
“Our decision comes after more than 18 months of good-faith dialogue with U.S. state and federal regulators. Despite their inconsistent and changing positions, Nexo has engaged in significant ongoing efforts to proactively modify its business in response to their concerns,” added Nexo in another Twitter post.
In accordance with the requirements from the US government and regulatory agencies, Nexo revealed that it has off-boarded users in Vermont and the New York City between 2021 and 2022. The platform also suspended new registrations for all US clients for the Earn Interest Product so as to meet regulators’ expectations. These interest-based products are often viewed as securities by the authorities.
For clients in Indiana, Kentucky, Maryland, Oklahoma, South Carolina, Wisconsin, California, and Washington, the access to Earn Interest Product will be shut off on December 6, 2022. However, all other products of the platform will be availabe to the users “until further notice.”
It is also crucial to note that the platform revealed that all client funds will be safe and added that “Nexo’s payment specialists have been informed and will continue processing withdrawals in real-time so that customers, as always, have uninterrupted access to their assets.”
In a blog post, Nexo announced the following:
“Given the challenges of the confusing and contradictory US regulatory regime, it is with a heavy heart that we begin the gradual and orderly departure from the US.”
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
