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- Nexo will close its US operations.
- The London-based cryptocurrency lender cited a lack of regulatory clarity as the reason for the move.
- Talks between the lenders and U.S. regulators have yielded no results.
- Nexo faces simultaneous enforcement action from eight different US states.
- The lender’s Earn Interest Product will not be available in ten US states, including California and Washington.
London-based cryptocurrency lender Nexo has announced that it will begin closing down its operations in the United States. The lender will gradually phase out its products and services from the country over the next few months.
Nexo pulls out due to regulatory uncertainty
according to Press release Lack of regulatory clarity was cited by lenders as one of the core reasons driving the drastic move. Inconsistent approaches by state and federal regulators will only make matters worse.
Our decision follows more than 18 months of good-faith dialogue with US state and federal regulators, which has come to a dead end. “
The press release further revealed that in order to please regulators, Nexo canceled customers in New York and Vermont between 2021 and 2022. Additionally, the cryptocurrency lender suspended all new registrations for our Earn Interest Product from US customers. Effective December 6th, the Earn Interest Product ban will be extended to 8 more states, Indiana, Kentucky, Maryland , Oklahoma, South Carolina, Wisconsin, California and Washington.
Other efforts to reap the benefits of U.S. regulators include registering the token sale with the SEC and delisting XRP after the SEC litigation Targeting Ripple Labs and exiting the cryptocurrency markets in New York and Vermont at the request of officials.
Despite Nexo’s efforts, talks with U.S. regulators have broken down. The lenders said there was a power struggle between regulators at the state and federal levels, leading to inconsistent decision-making.The lack of clarity has also created legal trouble for the company as it faces enforcement action from state regulators californiaKentucky, New York, Maryland, Oklahoma, South Carolina, washingtonand Vermont. These include cease and desist orders and statements of charge.
Nexo has clarified that arrangements have been made with the company’s payment specialists so that all withdrawals are processed in real time.
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