Cryptocurrency borrowing and lending platform Nexo plans to phase out its operations in the United States “in the coming months,” it posted on its blog on Dec. 5. Nexo has stated that the decision to leave the US is “regrettable but necessary”.
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.
— Nexus (@Nexus) December 5, 2022
Today we are announcing the unfortunate but necessary decision that Nexo will phase out its products and services in the United States due to a lack of regulatory clarity.
In the post, Nexo said it has been speaking with US regulators for 18 months in an attempt to determine how to comply with US financial laws. But these talks have not resulted in an agreement between the company and US officials.
“Our decision comes after more than 18 months of good faith dialogue with US state and federal regulators, which has reached an impasse,” the company stated. “It is now sadly clear to us that despite rhetoric to the contrary, the US refuses to provide a path forward to enable blockchain companies and we cannot give our customers confidence that regulators will focus on your best interests.”
Nexo has revealed that it has terminated clients in New York and Vermont and has suspended further registrations for the platform’s Earn Interest product in the US. In addition, existing clients in eight other states will no longer have access to the Earn Interest product. after December 6, 2022.
Existing customers in other states will still be able to access the product for now.
US regulators have come under fire in recent weeks following the bankruptcy of cryptocurrency exchange FTX. Some US lawmakers have argued that regulators should have broader powers to oversee cryptocurrency exchanges. On the other hand, some industry executives have claimed the opposite, that over-regulation is pushing US investors towards riskier offshore exchanges.
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